Kentucky Employment Law Update – May 2018

Marketplace Contractors and Independent Contractors

On March 21, 2018, Kentucky Governor Matt Bevin signed legislation (H.B. 220) specifying that a marketplace contractor is not an employee of a marketplace platform so long as all of the following apply:

• The marketplace platform and the marketplace contractor agree in writing that the marketplace contractor is an independent contractor with respect to the marketplace platform.
• The marketplace platform does not unilaterally prescribe specific hours during which the marketplace contractor must be available to accept service requests from third party individuals or entities submitted solely through the online-enabled application, software, website, or system of the marketplace platform.
• The marketplace platform does not prohibit the marketplace contractor from using any online-enabled application, software, website, or system offered by another marketplace platform.
• The marketplace platform does not restrict the marketplace contractor from engaging in another occupation or business.
• The marketplace contractor bears all or substantially all of the expenses incurred by the marketplace contractor in performing the services.
• The marketplace platform does not supply instrumentalities or tools for the person doing the work.

A marketplace contractor is a person or entity that enters into an agreement with a marketplace platform to use its digital network or mobile application to receive connections to third party individuals or entities seeking services. A marketplace platform is a person or entity that:

• Offers a digital network or mobile application that connects marketplace contractors to third party individuals or entities seeking the type of services offered by a marketplace contractor.
• Accepts service requests from the public exclusively through its digital network or mobile application and does not accept service requests by telephone, facsimile, or in person at a physical retail location.
• Does not perform the services offered by the marketplace contractor at or from a physical business location that is operated by the platform in the state.

The law is effective July 13, 2018.

Read KY H.B. 220