Independent Contractors and Marketplace Contractors
On March 14, 2018, Indiana Governor Eric Holcomb signed legislation (H.B. 1286) specifying that a marketplace contractor is an independent contractor if all of the following apply:
- All or substantially all of the payment for the services performed by the marketplace contractor is related to the performance of services or other output.
- The services performed by the marketplace contractor are governed by a written contract executed between the marketplace contractor and the marketplace platform and the contract includes the following provisions:
- The marketplace contractor is providing services as an independent contractor and not as an employee.
- All or substantially all of the payments paid to the marketplace contractor are to be based on the performance of services or other output by the marketplace contractor.
- The marketplace contractor may work any hours or schedules the marketplace contractor chooses. However, if the marketplace contractor does elect to work specified hours or schedules, the marketplace platform may require the marketplace contractor to work during the specified hours or schedules that the marketplace contractor elected to work.
- The marketplace contractor may perform services for other parties without restriction.
- The marketplace contractor bears responsibility for all or substantially all of the expenses that the marketplace contractor pays or incurs in performing the services, without the right to obtain reimbursement from the marketplace platform for the expenses.
A marketplace contractor is a person or an organization, including an individual, a corporation, a limited liability company, a partnership, a sole proprietor, or other entity, that enters into an agreement with a marketplace platform to provide services to third party individuals or entities seeking those services. A marketplace platform is an organization, including a corporation, a limited liability company, a partnership, a sole proprietor, or other entity, that:
- Operates a web site or smartphone application that facilitates the provision of services by marketplace contractors to individuals or entities seeking the services.
- Accepts service requests from the public only through the organization’s web site or smartphone application and does not accept service requests by telephone, facsimile, or in person at a retail location.
- Does not perform services at or from a physical location in Indiana.
The law is effective July 1, 2018.
Read IN H.B. 1286