First Considerations in Starting a Family Child Care Busine…

• Is the work an integral part of the employer’s business? If yes, employee status is indicated. • Does the worker’s managerial skill affect the worker’s opportunity for profit or loss? If not, employee status is indicated. • How does the worker’s investment in his or her business compare with the employer’s investment? If the worker’s investment is minimal compared with the employer’s investment, employee status is indicated. • Does the work performed require special skills and initiative? If not, employee status is indicated. • Is the relationship between the employer and worker permanent or indefinite? If yes, employee status is indicated. • What is the nature and degree of the employer’s control over the worker? If control is asserted, employee status is indicated. In addition, the Minnesota Department of Labor has developed additional factors to be used in determining independent contractor status. • An employer’s right to discharge a worker indicates employee status. • A worker making his or her services available to the general public on a continuing basis indicates independent contractor status. • Compensation on a job basis rather than by hour, week, or month indicates independent contractor status. • Where a worker is in a position to realize a profit or loss as a result of services rendered, independent contractor status is indicated. • The worker’s right to terminate the working relationship at will without incurring liability for non-completion indicates employee status. • A substantial investment by a person in facilities used in performing services for another indicates independent contractor status.

23

Made with FlippingBook - Online Brochure Maker