*Red font in the legislation and regulation indicates changes from previous reporting

Arkansas – HB 1850 (Licensing)

Issue: Independent Contractors

Affects:  Those who build pools/spas

Send comments to:  Jennifer Hatfield, jhatfield@apsp.org

Bill Summary:  This bill establishes the ‘Empower Independent Contractors Act’ of 2019. It amends the definition of employee and outlines the factors that must be considered when determining employment status.

This measure requires employers to use the twenty-factor test outlined by the IRS when determining the employee status of an individual. These factors include, but are not limited to, whether:

(i) A person for whom a service is performed has the right to  require compliance with instructions, including without limitation when, where, and how a worker is to work;

(ii) A worker is required to receive certain training;

(iii) A worker's services are integrated into the business  operation of the person for whom a service is performed and are provided in a way that shows the worker’s services are subject to the direction and control of the person for whom a service is performed;

(iv) A worker’s services are required to be performed personally,  indicating an interest in the methods used and the results; and 

(v) A worker is required to devote substantially full time to  the business of the person for whom a service is performed, indicating the person for whom a service is performed has control over the amount of time the worker spends working and by implication restricts the worker from obtaining other gainful work;

Employment status is defined as the status of an individual as an employee or independent contractor for employment purposes, including without limitation wages, taxation, and workers’ compensation issues. 

Employee is defined as any person employed for hire an individual who performs services for an employer for wages in any a lawful business, industry, trade, profession, or enterprise, and the individual's employment status has been determined by consideration of the twenty-factor test required .

APSP members are encouraged to reach out to the GR team if this affects pool/spa workers.  Please let APSP know whether or not to engage in this bill. 

Status: This bill was signed by the Governor on April 17th.  It will take effect 90 days after the adjournment of the legislature.  

Current version:   http://www.arkleg.state.ar.us/assembly/2019/2019R/Bills/HB1850.pdf