OLR Bill Analysis
AN ACT CONCERNING ESCORT CAR OPERATORS.
This bill makes escort car drivers independent contractors, rather than employees, for purposes of unemployment compensation law, if they meet the bill's conditions. These drivers, under permit from the Department of Transportation, accompany oversized or overweight vehicles on state highways. As independent contractors they will not be eligible for unemployment compensation benefits and the entity that hires them will not be responsible for paying unemployment taxes on the drivers' pay.
EFFECTIVE DATE: October 1, 2008
CRITERIA FOR INDEPENDENT CONTRACTOR DRIVERS
The bill removes an escort or flag vehicle driver from the definition of employee under the unemployment compensation law if they:
1. were previously engaged in the business or trade of providing such escort motor vehicle;
2. are, and were, free from control and direction by any other business or other person in connection with the actual performance of such services;
3. own their own vehicle, and statutorily required equipment, and exclusively employ this equipment in providing such services; and
4. are treated as independent contractors for all purposes, including, federal and state taxation, workers' compensation, choice of hours worked, and choice to accept referrals from multiple entities without consequence.
Under current law, to be considered an independent contractor a person must:
1. be free from control and direction in connection with the performance of the service, both under his or her contract of hire and in fact;
2. perform the service either outside the usual course of business of the employer or outside of all the employer's places of business; and
3. be customarily engaged in an independently established trade, occupation, profession or business of the same nature as the service performed.
COMMITTEE ACTION
Labor and Public Employees Committee
Joint Favorable
Yea |
11 |
Nay |
0 |
(03/04/2008) |