State rankings

Independent Contractor Laws by State

Independent Contractor Laws by State: compare 51 US states on 2 metrics.

Contractor Test

4 values across 51 entries

Data

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51 states
AlabamaCommon Law—
AlaskaABC Test—
ArizonaCommon Law—
ArkansasABC Test—
CaliforniaABC TestProposition 22, which allows rideshare companies like Uber and Lyft to classify drivers as independent contractors, was approved by voters. Although they are not considered employees, the new law requires that specific labor and wage policies be put in place for app-based driv…
ColoradoA&C of ABC Test—
ConnecticutABC Test—
DelawareABC Test—
District of ColumbiaCommon Law—
FloridaCommon Law—
GeorgiaABC Test—
HawaiiABC Test—
IdahoA&C of ABC Test—
IllinoisABC Test—
IndianaABC Test—
IowaCommon LawSB 2296 established a new rule making workers who operate certain vehicles are classified as independent contractors instead of employees effective July 1, 2021.
KansasABC Test—
KentuckyCommon Law—
LouisianaABC TestLouisiana added a definition of “employee” to their existing classification law. The new definition reads: “An ‘employee’ means an individual who performs services for an employer where there exists a right by the employer to control what work the employee does or how the empl…
MaineABC Test—
MarylandABC Test—
MassachusettsABC Test—
MichiganCommon Law—
MinnesotaCommon Law—
MississippiCommon Law—
MissouriCommon Law—
MontanaA&C of ABC Test—
NebraskaABC Test—
NevadaABC Test—
New HampshireABC Test—
New JerseyABC Test—
New MexicoABC Test—
New YorkCommon Law—
North CarolinaCommon Law—
North DakotaCommon Law—
OhioABC Test—
OklahomaA&B or A&C of ABC Test—
OregonABC Test—
PennsylvaniaA&C of ABC Test—
Rhode IslandABC Test—
South CarolinaCommon Law—
South DakotaCommon Law—
TennesseeABC Test—
TexasCommon Law—
UtahABC Test—
VermontABC Test—
VirginiaA&B or A&C of ABC TestHB 1407 makes it illegal to misclassify an employee as an independent contractor under the IRS common law test. The Virginia Department of Taxation is allowed to investigate and impose civil penalties of up to $1,000 for each misclassified employee for the first offense, and u…
WashingtonABC Test—
West VirginiaABC Test—
WisconsinA&C of ABC Test—
WyomingA&C of ABC Test—

Quick answers

Where does this independent contractor laws by state data come from?
Rankodex compiles it from World Population Review and the primary sources it cites: Independent Contractor Laws: Everything Employers Need to Know - Homebase; Massachusetts law about independent contractors - Mass.gov; What Is the ABC Test, and How Can Small Business Owners Comply? - Patriot Software; Independent Contractors Under U.S. Law: Knowing Your ABCs - JD Supra.