Connecticut Seal

General Assembly

 

Proposed Bill No. 5549

 

January Session, 2017

 

LCO No. 515

 

*00515*

Referred to Committee on LABOR AND PUBLIC EMPLOYEES

 

Introduced by:

 

REP. KLARIDES, 114th Dist.

 

AN ACT CLARIFYING CERTAIN UNEMPLOYMENT COMPENSATION PROVISIONS AS APPLICABLE TO INDEPENDENT CONTRACTORS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

That subdivision (5) of subsection (a) of section 31-222 of the general statutes be amended to exempt services performed by an individual as a producer with a service contract company or insurance agency that provides finance and insurance products and service to the automotive market, provided the following conditions are met:

(1) The service is provided by an individual producer who is otherwise engaged in an employment relationship with a business or trade involving automotive sales;

(2) The producer is, and has been, free from control and direction by any service contract company or insurance agency that provides finance and insurance products and service to the automotive market in connection with the actual performance of such services; and

(3) The producer is treated by the service contract company or insurance agency that provides finance and insurance products and service to the automotive market as an independent contractor for all purposes, including, but not limited to, federal and state taxation, workers' compensation, choice of hours worked and choice to accept referrals from multiple entities without consequence.

Statement of Purpose:

To clarify unemployment tax law so that certain independent contractors are not improperly treated as employees.