Independent Contractor Tests by State
Whether a worker is an employee or an independent contractor decides who pays payroll taxes, who must pay minimum wage and overtime, and who is covered by unemployment insurance. The label in a contract does not settle the question. Courts and agencies look at how the work is actually done, using a legal test to classify the worker.
50 states and DC compared. Last checked .
At a glance
- ABC test for wage law
- 9 of 25
- States and DC where the answer is yes or yes in some cases.
- ABC test for unemployment
- 18 of 51
- States and DC where the answer is yes or yes in some cases.
Compare independent contractor tests
States use different tests, and a state may use one test for wage and hour law and another for unemployment insurance. The common tests are the ABC test, which presumes a worker is an employee unless the business proves three conditions, the common law right to control test (some states apply it through the IRS 20 factor list), and the economic realities test. Several states use a two part test without the usual course of business condition. This guide compares the tests and links each rule to its statute.
51 of 51 shown
| Test for wage and hour law | Test for unemployment insurance | Sources | |||
|---|---|---|---|---|---|
| ALAlabama | Not listed | Not listed | Common law (right to control) test | No | |
| AKAlaska | Not listed | Not listed | ABC testFree from control, work outside usual course or places of business, independent trade | Yes | |
| AZArizona | Declaration creates presumption of contractor statusA signed declaration of independent business status, with conduct consistent with it, creates a rebuttable presumption for purposes of the labor title. | Not listed | Right to control test (method and result)Control means direction over both the method of the work and the result; hours, location, tools and the right to work for others are indications. | No | |
| ARArkansas | IRS 20 factor testRequired by the Empower Independent Contractors Act of 2019 for all of Title 11, including wage issues. | No | IRS 20 factor test | No | |
| CACalifornia | ABC testLabor Code 2775 sets the test; listed exceptions apply, and where a court holds the ABC test cannot apply in a context, the Borello test governs. | Yes | ABC testFree from control, work outside the usual course of business, independent trade | Yes | |
| COColorado | Two part test: control and independent businessRelevant factors include control and whether the person does the employer's primary work. | No | Two part test: control and independent businessA signed written document with the required disclosure creates a rebuttable presumption of contractor status. | No | |
| CTConnecticut | Not listed | Not listed | ABC testFree from control, work outside usual course or places of business, independent trade | Yes | |
| DEDelaware | ABC test for construction (Workplace Fraud Act)The Workplace Fraud Act applies only to the construction services industry. | Construction only | ABC testFree from control, work outside usual course or places of business, independent trade | Yes | |
| DCDistrict of Columbia | ABC test for construction (Workplace Fraud Act)The Act's employee definition covers people providing construction services. | Construction only | Common law (right to control) test | No | |
| FLFlorida | Follows federal FLSA coverageOnly individuals entitled to the federal minimum wage under the FLSA are eligible for the state minimum wage. | No | Common law (right to control) test | No | |
| GAGeorgia | Not listed | Not listed | Two part test: control factors and independent businessAn IRS SS-8 determination against employee status also qualifies. | No | |
| HIHawaii | Not listed | Not listed | ABC testFree from control, work outside usual course or places of business, independent trade | Yes | |
| IDIdaho | Not listed | Not listed | Two part test: control and independent business | No | |
| ILIllinois | ABC test (Wage Payment and Collection Act)The ABC test is written into the Wage Payment and Collection Act; it was not confirmed for the Minimum Wage Law. | Yes (Wage Payment and Collection Act) | ABC testFree from control, work outside usual course or places of business, independent trade | Yes | |
| INIndiana | Not listed | Not listed | ABC testPart B requires work outside the usual course of business; part C can be met by a commission only sales agent. | Yes | |
| IAIowa | Follows federal FLSA definitionsThe minimum wage law uses the FLSA definitions of employer and employee. | No | Control test (free from control or direction) | No | |
| KSKansas | Not listed | Not listed | Right to control test (result and manner and means) | No | |
| KYKentucky | Not listed | Not listed | Common law (right to control) testService counts as employment when, under the usual common law rules, the worker has the status of an employee. | No | |
| LALouisiana | Not listed | Not listed | ABC testWork for wages is employment unless the administrator is shown all three conditions are met. | Yes | |
| MEMaine | Statutory multi-factor test (same as unemployment)The wage payment subchapter defines an independent contractor by reference to the unemployment test in 26 M.R.S. 1043(11)(E). | No | Control plus 5 required and 3 of 7 other criteriaWork for pay is employment unless the worker is free from essential direction and control and meets the listed criteria. | No | |
| MDMaryland | ABC test in construction and landscapingThe Workplace Fraud Act presumes employment unless the ABC conditions are met; the subtitle applies only to construction and landscaping services. | Construction and landscaping only | ABC testWork under a contract of hire is not covered employment only if all three conditions are met. | Yes | |
| MAMassachusetts | ABC testFor chapters 149 and 151, a worker is an employee unless all three ABC conditions are met. | Yes | ABC testService is employment, whether or not a common law master and servant relationship exists, unless all three conditions are shown. | Yes | |
| MIMichigan | Not listed | Not listed | IRS 20 factor testSince January 1, 2013, the agency applies the IRS 20 factor test; federal income tax withholding is prima facie evidence of employment. | No | |
| MNMinnesota | Same tests as unemployment and workers' compThe misclassification law uses those tests; building construction uses a separate statutory business entity test (Minn. Stat. 181.723). | No | Common law (right to control) testEmployment means service by an individual who is an employee under the common law of employer-employee; construction work follows Minn. Stat. 181.723. | No | |
| MSMississippi | Not listed | Not listed | Control test (common law principles)Work for wages is employment unless the worker is free from control and direction, both under contract and in fact. | No | |
| MOMissouri | Not listed | Not listed | Common law (right to control) testService for pay is employment unless shown to be by an independent contractor; control of manner and means makes the worker an employee. | No | |
| MTMontana | Not listed | Not listed | Two part test: control and independent businessEmployment is presumed; independent contractor status rests on an exemption certificate requiring freedom from control and an independently established business. | No | |
| NENebraska | ABC test for construction and delivery workersThe Employee Classification Act presumes construction and delivery workers are employees unless they meet the 48-604(5) criteria; construction workers must also be registered. | Construction and delivery only | ABC testServices for wages are employment unless all three conditions are shown; the statute says it is complete as written. | Yes | |
| NVNevada | Statutory presumption: tax ID, licenses and 3 of 5 criteriaCriteria include control over means and timing, non-exclusivity, freedom to hire helpers and substantial capital investment. | No | ABC testServices for wages are employment unless the worker meets all three conditions. | Yes | |
| NHNew Hampshire | Not listed | Not listed | ABC testWork for wages is employment unless the commissioner is shown that all three conditions are met. | Yes | |
| NJNew Jersey | ABC testHargrove v. Sleepy's (2015) applied the unemployment ABC test; N.J.A.C. 12:11 confirms it for the wage laws. | Yes | ABC testServices for pay are employment unless all three conditions (A), (B) and (C) are shown. | Yes | |
| NMNew Mexico | Not listed | Not listed | ABC testAll three conditions must be shown by a preponderance of the evidence. | Yes | |
| NYNew York | ABC test for construction and commercial truckingLabor Law 861-c and 862-b classify these workers as employees unless all three criteria are met; no general statutory test was confirmed. | Construction and trucking only | Control test (supervision, direction and control)No single factor decides; construction and commercial goods transportation workers fall under ABC style statutes. | Construction and trucking only | |
| NCNorth Carolina | Not listed | Not listed | Federal definition (Internal Revenue Code 3306)Employee is defined by IRC 3306; the law defines an independent contractor as someone not subject to control over the details of the work. | No | |
| NDNorth Dakota | Common law (right to control) testThe labor department applies the common law test referenced in its wage rules when deciding wage claims. | No | Common law (right to control) testService for wages is presumed to be employment unless the worker is an independent contractor under the common law test. | No | |
| OHOhio | Follows federal FLSA definitions (economic realities)Ohio's minimum wage law gives "employee" and "independent contractor" the same meanings as the federal Fair Labor Standards Act. | No | Direction or control testService for pay is employment unless the worker is shown to be free from direction or control, under the contract and in fact. | No | |
| OKOklahoma | Not listed | Not listed | IRS 20 factor testThe Oklahoma Employment Security Commission has exclusive authority to decide whether a worker is an independent contractor or an employee. | No | |
| OROregon | Economic reality testThe Bureau of Labor and Industries Wage and Hour Division weighs five factors; no single factor decides. | No | ORS 670.600 test (control plus independent business)Worker must be free from direction and control and customarily engaged in an independently established business, among other criteria. | No | |
| PAPennsylvania | Not listed | Not listed | Two part test: control and independent businessService for wages is employment unless the worker is free from control or direction and is customarily engaged in an independently established trade. | No | |
| RIRhode Island | Follows federal FLSA factors (economic realities)The labor department's misclassification investigations use factors consistent with federal FLSA regulations. | No | IRS factors (common law)Status is decided using the same factors the Internal Revenue Service uses in its code and regulations. | No | |
| SCSouth Carolina | Not listed | Not listed | Common law (right to control) testCovers any individual who has employee status under the usual common law rules. | No | |
| SDSouth Dakota | Not listed | Not listed | Two part test: control and independent businessThe Department of Labor and Regulation must be satisfied that both parts are met. | No | |
| TNTennessee | Not listed | Not listed | IRS 20 factor testThe statute lists all twenty factors, such as instructions, profit or loss and availability to the public. | No | |
| TXTexas | Common law (right to control) test, TWC Form C-8The Payday rules adopt Form C-8 as the official guideline for deciding employment status. | No | Direction or control test (TWC Form C-8)Service for wages is employment unless shown free from control or direction under the contract and in fact. | No | |
| UTUtah | Not listed | Not listed | Two part test: control and independent businessThe worker must be independently established in the same kind of business and free from control over the means of performance. | No | |
| VTVermont | Not listed | Not listed | ABC testAll three parts must be shown to the satisfaction of the Commissioner. | Yes | |
| VAVirginia | IRS guidelines (common law), employee presumedIn a misclassification action, a paid worker is presumed an employee unless shown to be a contractor under IRS guidelines. | No | IRS guidelines (common law)Service is employment unless the Commission finds the worker is not an employee under the IRS standard for FICA and FUTA. | No | |
| WAWashington | Economic dependence testLabor and Industries evaluates each case using listed factors under the Minimum Wage Act. | No | ABC test (or six part alternative)Free from control, outside usual course or places of business, and independently established business; a separate six part test also exists. | Yes | |
| WVWest Virginia | Statutory criteria, else IRS Rev. Rul. 87-41 testApplies to the Wage Payment and Collection Act. | No | Statutory criteria, else IRS Rev. Rul. 87-41 testThe same Employee Classification Act test applies to unemployment compensation. | No | |
| WIWisconsin | Employee presumed; follows federal DOL guidanceThe Labor Standards Bureau follows U.S. Department of Labor Wage and Hour Division interpretations. | No | Control plus 6 of 7 conditionsThe employer must show both, by contract and in fact (special rules for loggers and truckers). | No | |
| WYWyoming | Not listed | Not listed | Three part test (control, holds out, may substitute)Three former parts of the test were repealed (one in 1991, two in 1995). | No |
General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.
What this means in practice
Write down how the working relationship actually operates: who sets the hours, who supplies tools, whether the worker serves other clients and whether the work is part of the business's usual line of work. These facts drive every classification test, and a written independent contractor agreement helps only if it matches them.
Check each law separately. A worker can be a contractor under one statute and an employee under another, because wage laws, unemployment insurance, workers' compensation and tax rules may each use their own test. Federal law also applies its own tests alongside the state rules.
Misclassification can lead to back wages, unpaid unemployment contributions, interest and penalties. If a role is close to the line, read the statute and agency guidance for the state where the work is performed, or ask the state labor or unemployment agency how it applies its test.
Independent Contractor Tests: state by state
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Frequently asked questions
What is the ABC test for independent contractors?
The ABC test presumes a worker is an employee unless the business shows three things: (A) the worker is free from the business's control and direction in doing the work, (B) the work is outside the usual course of the business (in some versions, or performed outside its places of business), and (C) the worker is customarily engaged in an independently established trade or business. Failing any one part usually makes the worker an employee.
What is the right to control test?
The right to control test, based on common law, asks whether the business has the right to control not only the result of the work but also how it is done. Courts weigh factors such as instructions, training, who supplies tools, how the worker is paid and whether either side can end the relationship at will. No single factor decides the case.
What is the economic realities test?
The economic realities test asks whether the worker is economically dependent on the business or is in business for themselves. Factors include the worker's chance for profit or loss, their investment, how permanent the relationship is, the skill required and whether the work is an integral part of the business. Federal wage law uses this test, and some states follow it for their own wage laws.
Can one worker be classified differently under different laws?
Yes. Wage and hour laws, unemployment insurance, workers' compensation and tax laws may each use a different test, even within one state. A worker can qualify as an independent contractor for one purpose and as an employee for another, so each law needs its own analysis.
Does an independent contractor agreement make someone a contractor?
Not on its own. A written agreement shows what the parties intended, but agencies and courts classify workers based on how the relationship works in practice. If the facts point to employment under the applicable test, the worker is an employee despite the contract label.
ABC test for wage law: which states say yes?
Of the 25 jurisdictions we checked, the answer is yes in 4 jurisdictions, in some cases in 5, no in 16. Yes: California, Illinois, Massachusetts and New Jersey. In some cases: Delaware, District of Columbia, Maryland, Nebraska and New York.
ABC test for unemployment: which states say yes?
Of the 51 jurisdictions we checked, the answer is yes in 17 jurisdictions, in some cases in 1, no in 33. Yes: Alaska, California, Connecticut, Delaware, Hawaii, Illinois, Indiana, Louisiana, Maryland, Massachusetts, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, Vermont and Washington. In some cases: New York.