texas family-law employment
How does Texas law determine what business owner is misclassifying?
<p>I just happen to be reading <a href="https://www.texastribune.org/2015/04/02/business-owners-lawmakers-set-sights-child-support/" rel="nofollow noreferrer">this article</a>, and as an independent business owner it upsets me how the media paints business owners who have independent contractors as "misclassifying" their employees.</p>

<p>How is misclassification determined in Texas? The article seems to suggest any business owner who has a 1099 contractor who happens to owe child support is misclassifying them. It wreaks of if you are not with us in collecting child support, then you are against us type of tone.</p>

<blockquote>
  <p>How is misclassification determined in Texas?</p>
</blockquote>

<p>This is a complicated distinction virtually anywhere in the world. For example, in <a href="/questions/tagged/new-south-wales" class="post-tag" title="show questions tagged &#39;new-south-wales&#39;" rel="tag">new-south-wales</a> I have workers who are contractors for income tax and GST (value added tax) but employees for superannuation and worker’s compensation. Similar nuances apply in <a href="/questions/tagged/texas" class="post-tag" title="show questions tagged &#39;texas&#39;" rel="tag">texas</a> - a worker might be an employee for some purposes and a contractor for others.</p>

<p>For Texas law only (Federal law and inter-state employees are different) the <a href="https://thecompanylawyer.com/employee-vs-independent-contractor/" rel="nofollow noreferrer">law</a> is that a worker is presumed to be an employee unless the employer demonstrates that they are an independent contractor.  To be an independent contractor:</p>

<ol>
<li><p>The company generally seeks out the worker</p></li>
<li><p>The company and worker negotiate the terms of the engagement</p></li>
<li><p>The company does not train the independent contractor</p></li>
<li><p>Payment is for a finished product or service, not hourly wages</p></li>
<li><p>The independent contractor does not sign a non-compete agreement</p></li>
<li><p>Any non-solicitation agreement must be narrowly defined</p></li>
<li><p>Any non-disclosure agreement must be narrowly defined</p></li>
<li><p>The worker does not wear the company uniform</p></li>
<li><p>The worker does not have a company e-mail account</p></li>
<li><p>The worker has no company benefits or wage advances</p></li>
<li><p>The company does not withhold taxes and issues an annual 1099</p></li>
<li><p>The worker has his own business cards</p></li>
<li><p>The worker invoices the company on his own letterhead</p></li>
<li><p>The worker provides goods or services to other companies</p></li>
<li><p>The worker is self-employed and is in a position to make a profit or loss</p></li>
</ol>

<p>That said, the article is clear that for child support garnishment it shouldn’t  matter if the worker is an employee or a contractor.</p>
