Opinion ID: 1856916
Heading Depth: 1
Heading Rank: 9

Heading: employees or independent contractors

Text: The employee-independent contractor distinction must be determined by the statutory test as set forth in SDCL 61-1-11. We refer to this statute by reference and the very recent decision interpreting it. S.D. Dept. of Labor v. Tri State Insulation, supra . This statutory test is commonly referred to as the ABC TEST. There are three subsections in this statute. The word and is found between subsection (1), subsection (2), and subsection (3). Therefore, it is a conjunctive test and all three elements of the statutory test must be met before an exemption from the payment of unemployment compensation taxes is found. North American Bldrs., Inc. v. Unemployment Comp. D., 22 Utah 2d 338, 453 P.2d 142 (1969). It is important to note that the statute deems that services performed by an individual for wages are employment subject to the title; therefore, the burden is upon the employer to establish that none of those three tests exist within the factual situation of this case. However, before the three subsections of SDCL 61-1-11 are addressed, it must first be shown that the alleged employee performs services for wages. Matter of Balhorn-Moyle Petroleum Co., supra; Sarah Coventry, Inc. v. Caldwell, 243 Ga. 429, 254 S.E.2d 375 (1979). The judgment at lower level recites that the remuneration received by the individuals in question for their services performed on the appellant's construction projects do constitute wages. The record supports this conclusion. Addressing the ABC TEST and considering the FACTS and SCOPE OF REVIEW, supra, we are convinced there is no reversible error.