Arizona Enacts Independent Contractor Declaration

The Arizona Legislature recently passed HB 2114, which adds Chapter 10 to Title 23—Labor. An executed declaration similar to the form contained in Chapter 10 will create a rebuttable presumption that an independent contractor relationship exists between the worker and the employing organization. The declaration includes statements that the independent contractor provides services to other organizations, is paid by the job and not on a salary or hourly basis, and is not covered on the employer’s health or workers’ compensation insurance. The completion of the declaration is completely voluntary. The absence of such a declaration does not raise a presumption that an independent contractor relationship does not exist.

A “rebuttable presumption” is just that: some evidence that an independent contractor relationship exists that can still be overcome by better evidence that the worker is really an employee. Nevertheless, it provides at least some help to employers attempting to prove their workers are independent contractors.