UI Test - Prior to January 1, 2011

Unemployment Insurance - Worker Classification

Prior to January 1, 2011

Condition Ten - Success or Failure

The success or failure of the individual's business depends on the relationship of business receipts to expenditures.

Explanation of Condition Ten

This condition involves, at least in part, the notion of economic independence. That is, was the worker performing similar services for other employing units besides the employing unit at issue during the time period in question?

Some LIRC decisions have held that where the individual performed for only one employing unit the condition was not satisfied because the relationship of business receipts to expenditures was less important than the individual maintaining a relationship with the particular employing unit.

Other decisions have held that this condition is concerned with a broad overview of the enterprise in question to determine whether the individual faces any realistic prospect of a significant period of time during which he or she would necessarily have expenditures but not receipts.

Similarly, other decisions have held that this condition is concerned with whether the endeavor involves a significant investment which is at risk thereby creating the potential for real success if the investment proves profitable or real failure if the investment is lost.

The condition is not satisfied if the individual is performing the services more as a hobby than as a business, on the rationale that the individual is not interested, at least primarily, in receipts versus expenditures.

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