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Tennessee Employee Misclassification Advisory Task Force

Tennessee Employee Misclassification Advisory Task Force

Worker misclassification occurs when an employer hires a worker and improperly classifies the person as an “independent contractor” rather than as an “employee" or the employer pays the worker in cash with no tax deductions, and fails to report some or all payroll to the insurance carriers.  The Fraud Tip Line is 1.888.243.7283.
Employee Misclassification Fraud Tip Form

EMATF Website Disclaimer for Committee and Supplemental Reports
Although committee reports are published on the EMATF website, they are not conclusive.  Final recommendations of the Task Force are found in the Annual Report.   Some but not all of the information in the committee reports was used to prepare the 2012 EMATF Annual Report. 

The 2012 EMATF Annual Report includes the following recommendations for the legislature to consider:  (1) enhanced enforcement (2) authorize administrative penalties and (3) authorize stop work orders directed at noncompliant employers.    

Annual Reports

2013 Committee Reports - FINAL

2012 Committee Reports - FINAL

Committee Reports and Supplemental Reports

2013 Minutes of Meetings

2012 Minutes of Meetings

Employee Misclassification Law (Public Chapter 424)

General Characteristics of Employees and Independent Contractors

Independent Contractor

  • Free from direction and control
  • Has necessary skills and training to complete job
  • Has a business location
  • Performs services for multiple customers
  • Sets own hours
  • Determines own price for contracted services
  • Not eligible for employee benefits
  • Provides equipment and tools used to complete job
  • Supplies materials needed to do job
  • Personally liable for errors and/or accidents
  • Files self-employment taxes
  • Has right to hire and fire workers
  • Must legally complete each contract

Employee

  • Means and manner of work are (or can be) controlled by employer
  • May be trained by employer to perform job
  • May work at employer’s business location
  • Works for one employer, may serve that employer’s customers
  • Hours set by employer
  • Accepts wage, salary, or commission determined by the employer
  • Employer may provide and control equipment and tools
  • Employer may purchase materials and supplies
  • Employer liable for employee errors and/or accidents
  • Is hired and can be fired by employer
  • May quit working for an employer at any time
  • Employer may require specific attire to be worn while at work such as a uniform or shirts with company logo