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Contractors and DOL

The DOL reviews workers to determine if they meet the criteria of employees. There is no one single rule or test to determine whether someone is an independent contractor or employee. The Court has held that it is the total activity or situation that determines the proper status. Among the factors considered significant are:

Are services rendered an integral part of the principal's business

The degree of independent business organization and operation

The amount of the contractor's investment in facilities and equipment

The contractor's opportunities for profit and loss

Is the contractor aware of odds to making a profit

The permanency of the relationship