In 2023, the Kentucky Supreme Court adopted the six-factor ‘economic realities test’ to distinguish between employees and independent contractors. This test, outlined in the case Oufafa v. Taxi, LLC, focuses on the worker’s economic dependence on the company. The six factors include the permanency of the relationship, the degree of skill required, the worker’s investment in equipment, the opportunity for profit or loss, the employer’s control over work performance, and whether the service is integral to the business. While these factors guide decisions, other considerations, such as the parties’ understanding of their relationship, may also be relevant. The test emphasizes economic dependence rather than income percentages.
— new from WorkersCompensation.com
