Worker's Compensation - Worker Classification

Nine Requirements Test - Independent Contractor

Requirement Nine - Relationship of Business Receipts to Expenditures

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

Explanation of Requirement Nine

An employing unit satisfies this requirement by showing that the worker is in a position to succeed or fail if business expense exceeds income.

The individual must face a realistic prospect of a significant time period during which he or she would necessarily have expenditures but not receipts.

If the individual is guaranteed to receive the amount expected from the employing unit without any possibility of loss, the requirement is not satisfied.

Case Studies

Case studies relevant to Requirement Nine based upon cases decided by the Labor and Industry Review Commission (LIRC), Wisconsin Circuit Courts and Wisconsin Appellate Courts


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