Unemployment Insurance - Worker Classification

Part 2: Six of Nine Conditions - Indian Tribal Government

Condition Seven - May Realize Profit or Loss

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

Explanation of Condition Seven

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 potential for profit and the potential for loss need to be evaluated by looking at the specific contracts the individual enters into. This test does not look at the question of whether, in the long run, income received through the individual's business will exceed expenses, or vice-versa. Rather, it looks at the question of whether under particular contracts the individual enters into, there can be a profit or there can be a loss.

Case Studies

Cases studies relevant to condition seven based upon cases decided by the Labor and Industrial Review Commission (LIRC), Wisconsin Circuit Courts, and Wisconsin Appellate Courts

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