By Dinita L. James, JD, Gonzalez Saggio & Harlan LLP
A new state law in Arizona going into effect on August 6 will allow independent contractors to provide a declaration of their independence to businesses using their services.
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The law provides a form called a declaration of independent business status (DIBS) to help determine if a worker should be classified an independent contractor or an employee.
Proponents of the law want to encourage parties to establish the nature of their relationship at its outset. If they do so using a form that substantially complies with the law on who is or isn’t an employee, then it will be up to the party that contests independent contractor status to prove that that an employment relationship actually existed instead.