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Independent Contractor Test in Virginia

Virginia uses IRS guidelines (the common law test) for both wage law misclassification claims, with a presumption that a paid worker is an employee, and unemployment insurance; it does not use the ABC test.

Last checked . General information, not legal advice.

Virginia at a glance

Test for wage and hour law
IRS guidelines (common law), employee presumed
In a misclassification action, a paid worker is presumed an employee unless shown to be a contractor under IRS guidelines.
ABC test for wage law
No
Test for unemployment insurance
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.
ABC test for unemployment
No

Sources

Last checked

The rules in Virginia

Which test does Virginia use to classify independent contractors under its wage and hour laws?

Test for wage and hour law in Virginia: IRS guidelines (common law), employee presumed. In a misclassification action, a paid worker is presumed an employee unless shown to be a contractor under IRS guidelines.

Does Virginia apply the ABC test under its wage and hour laws?

No. ABC test for wage law in Virginia: no.

Which test does Virginia use to classify independent contractors for unemployment insurance?

Test for unemployment insurance in Virginia: 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.

Does Virginia apply the ABC test for unemployment insurance?

No. ABC test for unemployment in Virginia: no.

Where do the Virginia independent contractor tests come from?

The rules above come from Va. Code 40.1-28.7:7 and Va. Code 60.2-212(C). Each source is linked on this page. We last checked them in October 2026.

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.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.