A case dating back to 2009 is set for review at the Supreme Court in the US. They have sent it back to the lower courts in order for the final decisions and a conclusion for the case.
This case could set a precedent for the future. Now this case must come to some conclusion and the moving businesses in Arizona are awaiting the results to see if it will affect their businesses long-term.
Currently many businesses employ people under an independent contract agreement. This means they are not an employee of the company and they are in effect self-employed.
What this dispute is looking to challenge is if this is true or are these individuals employees of the company. The company that puts them to work and finds the contracts and distributing the individuals to carry out and complete the work may be in question. However you view this, the argument is if the company controls the work, and even though there is an agreement in place, the independent contractors are in essence employees of the company.
With a number of businesses in the moving sector relying on the system of independent contractors to form part of their business and avoid in essence paying their taxes for them, they would be responsible for this side of their own income. It could cause a complete collapse of the workforce who work under the umbrella of an independent contractor.
The outcome for businesses that are in this situation is all riding on the results of this one court case. Many hoped the review in the Supreme Courts would end the battle. With this hope squashed it falls back on the lower courts in the Arizona district to finally settle the disagreement and resolve the situation. It will determine if an independent contractor, who works solely for one company, is in fact an employee regardless of the independent contract agreement or not.
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