Source: https://www.shouselaw.com/nevada/labor/misclassify-employee
Timestamp: 2019-04-24 07:05:13+00:00

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Employees who are misclassified as independent workers may lose out on significant money and benefits.
Example: Jim hires Ned to paint his house. Jim provides all the tools and instructs Ned when and how he can paint it. Jim also forbids Ned from working elsewhere and hiring help. After the job is done, Ned asks for a W2 form because he believes he was Jim's employee during the job. Jim refuses and instead gives him a 1099 form, insisting Ned was an independent contractor.
In the above example, a Nevada court might find that Ned was an employee. Even if Jim can show that Ned had a contractor's license, Jim treated Ned as an employee: Ned lacked control over the work and was dependent on Jim economically.
Wage and hour laws do not apply to independent contractors.
Employers generally have more responsibilities and obligations to employees than independent contractors. This is why employers generally prefer having independent contractors over employees.
True independent contractors are not entitled to receive workers compensation benefits under Nevada law.
Employers may only designate a worker as an independent contractor if the facts support it. The independent contractors tend to cost less and demand less responsibility from employers plays no role in whether a worker qualifies as an independent contractor or an employee.
Example: Mel hires Kay to be his secretary. Mel tells Kay when her work hours are, how to do her job, and provides her with a desk, computer, and phone. Mel forbids Kay to work as a secretary in any other office. Mel does not want to pay payroll taxes or to cover Kay under his insurance policies, so he intends to report Kay as an independent contractor. However, Kay is clearly an employee and is therefore legally entitled to employee benefits.
Employees owed back wages can file a claim with the Nevada Labor Commissioner.
After an investigation into the matter, the Commissioner may hold a hearing, which is similar to a trial but on a smaller scale. Finally, the Commissioner can issue a decision ordering the employer to pay the employee all the wages he/she was denied by being misclassified as an independent contractor.
Employers who misclassify workers may be on the hook for significant money damages.
Scroll down to the next question for more information about federal law and employee misclassifications.
Are you an employee who was misclassified as an independent contractor? Call our Las Vegas employment law attorneys for a FREE consultation at 702-DEFENSE (702-333-3673). We will do everything in pursuit of recovering all your unpaid wages and benefits plus liquidated and punitive damages if possible.
Work in California? See our article on Misclassification of employees as independent contractors in California.
NRS 608.0155 (Nevada Senate Bill 224 (2015)) Persons presumed to be independent contractor.
(1) Notwithstanding the exercise of any control necessary to comply with any statutory, regulatory or contractual obligations, the person has control and discretion over the means and manner of the performance of any work and the result of the work, rather than the means or manner by which the work is performed, is the primary element bargained for by the principal in the contract.
(2) Except for an agreement with the principal relating to the completion schedule, range of work hours or, if the work contracted for is entertainment, the time such entertainment is to be presented, the person has control over the time the work is performed.
(II) The person has entered into a written contract to provide services to only one principal for a limited period.
(4) The person is free to hire employees to assist with the work.
(III) Lease of any work space from the principal required to perform the work for which the person was engaged.
--> The determination of whether an investment of capital is substantial for the purpose of this subparagraph must be made on the basis of the amount of income the person receives, the equipment commonly used and the expenses commonly incurred in the trade or profession in which the person engages.
2. The fact that a person is not conclusively presumed to be an independent contractor for failure to satisfy three or more of the criteria set forth in paragraph (c) of subsection 1 does not automatically create a presumption that the person is an employee.
3. As used in this section, “foreign national” has the meaning ascribed to it in NRS 294A.325.
1. The relationship between a provider of jobs and day training services which is recognized as exempt pursuant to the provisions of 26 U.S.C. § 501(c)(3) and which has been issued a certificate by the Division of Public and Behavioral Health of the Department of Health and Human Services pursuant to NRS 435.130 to 435.310, inclusive, and a person with an intellectual disability or a person with a developmental disability participating in a jobs and day training services program.
2. The relationship between a principal and an independent contractor.
3. As used in this section, “developmental disability” has the meaning ascribed to it in NRS 435.007.
Terry v. Sapphire Gentlemen's Club, 130 Nev. Adv. Rep. 87, 336 P.3d 951 (2014)("Thus, the economic realities test examines the totality of the circumstances and determines whether, as a matter of economic reality, workers depend upon the business to which they render service for the opportunity to work.").
See Terry v. Sapphire Gentlemen's Club, 130 Nev. Adv. Rep. 87, 336 P.3d 951 (2014); See, e.g., Yellow Cab Cooperative, Inc. v. Workers' Comp. Appeals Bd., 226 Cal.App.3d 1288, 1297 (1991).
See Forms for Employees, State of Nevada Department of Business & Industry Office of the Labor Commissioner.
Terry v. Sapphire Gentlemen's Club, 130 Nev. Adv. Rep. 87, 336 P.3d 951 (2014).
Nevada Rules of Civil Procedure 23.
29 U.S. Code § 260.
See., e.g., Congressional Budget Justification Employment And Training Administration State Unemployment Insurance And Employment Service Operations, Department of Labor.

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