UI Test - Prior to January 1, 2011

Unemployment Insurance - Worker Classification

Prior to January 1, 2011

Condition Eight - Profit or Loss

The individual may realize a profit or suffer a loss under contracts to perform such services.

Explanation of Condition Eight

This condition examines whether, under a contract for the individual's services, there can be a profit, as well as whether there can be a loss under that same contract. A profit means that income received under the contract exceeds the expenses incurred in performing the contract. A loss means the income received under that contract fails to cover the expenses incurred in performing the contract.

The individual must have a realistic possibility of both making a profit and of suffering a loss. Speculation as to theoretical profit or loss is not sufficient. Actual out-of-pocket loss must be a realistic possibility. "Lost time" or "lost opportunity" does not constitute an actual out-of-pocket loss. Being paid less money than originally anticipated or agreed does not constitute "suffering a loss" unless it can be established that the individual suffered an actual out-of-pocket loss.

The possibility of profit or loss must be determined over a substantial period of time rather than based on a single job. The amount of monetary investment made by the individual performing the services is also relevant since if there is little, or no, investment there is equally little likelihood of an actual out of-pocket loss.


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