What I have a hard time understanding is the 3rd of the 3 tests that determine if a person can be classified as independent contractor. [1]
I understand A & B, but as for C, why does someone's normal job have to be in that same line of work to be considered an independent contractor? What does whether a person is a driver professionally, or a teacher making money on the side, determine whether they're performing work as a contractor?
Maybe someone more expert can explain.
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[1]
ABC Test that all 3 conditions must be satisfied for worker to be considered a contractor:
"...
(a) that the worker is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of the work and in fact; and
(b) that the worker performs work that is outside the usual course of the hiring entity’s business; and
(c) that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.”
I understand A & B, but as for C, why does someone's normal job have to be in that same line of work to be considered an independent contractor? What does whether a person is a driver professionally, or a teacher making money on the side, determine whether they're performing work as a contractor?
Maybe someone more expert can explain.
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[1] ABC Test that all 3 conditions must be satisfied for worker to be considered a contractor:
"... (a) that the worker is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of the work and in fact; and (b) that the worker performs work that is outside the usual course of the hiring entity’s business; and (c) that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.”