The Borello test evaluated multiple factors to determine whether an individual was an independent contractor. Not all of the factors had to be met to establish independent contractor status. The principal factor of the Borello test was whether the “person to whom service is rendered has the right to control the manner and means of accomplishing the result desired.” The test also included nine additional factors:
(1) right to discharge at will, without cause;
(2) whether the one performing the services is engaged in a distinct occupation or business;
(3) the kind of occupation, with reference to whether, in the locality, the work is usually done under the direction of the principal or by a specialist without supervision;
(4) the skill required in the particular occupation;
(5) whether the principal or the worker supplies the instrumentalities, tools, and the place of work for the person doing the work;
(6) the length of time for which the services are to be performed;
(7) the method of payment, whether by the time or by the job;
(8) whether or not the work is part of the regular business of the principal; and
(9) whether or not the parties believe they are creating a relationship of employer-employee.
Many small and medium-sized businesses have opted to enlist the services of a Professional Employer Organization (PEO) to make reclassification less burdensome. TEXT US us if you'd like to learn more how a reputable PEO serving your industry can help your business call 1-760-413-9274. CALL US
Your PEO should be able to provide close estimates regarding the direct costs associated with classifying each person as an employee, including taxes, impact on workers’ compensation insurance, health insurance, unemployment insurance, and more factors.
The Borello Test
- Category: ABC Test