Compliance
Independent Contractor
An individual free from payer's control, performing work outside the payer's usual business, and engaged in an independent trade.
Definition
Under Michigan Senate Bill 6, an 'independent contractor' is defined by an 'ABC test' where the individual must be (A) free from the control and direction of the payer in connection with the performance of the work, both under contract and in fact; (B) perform work that is outside the usual course of the payer's business; and (C) be customarily engaged in an independently established trade, occupation, or business of the same work performed by the individual for the payer. This definition is crucial for distinguishing between employees and contractors to ensure proper labor protections.