Connecticut Supreme Court Provides Guidance on Test for Independent Contractors

In Southwest Appraisal Group, LLC v. Administrator, Unemployment Compensation Act, the Connecticut Supreme Court held that whether an employment relationship exists for unemployment compensation purposes, “evidence of the performance of services for third parties is not required to prove part C of the ABC test but, rather, is a single factor that may be considered under the totality of the circumstances.” A state agency had found the company liable for unemployment taxes for three individuals misclassified as independent contractors. The state high court said the agency erred in finding it dispositive that they did not actually provide services to other companies, despite ample evidence that they had independent business enterprises.

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