1. Relief Veterinarians: Employees or Independent Contractors
Irwin Venick, Esq
Venick, Kuhn, Byassee, Austin & Rosen PLLC
January 30, 2018

2. Does the law consider them employees or independent contractors?
Relief Veterinarians
Does the law consider them employees or independent contractors?

3. What is the Governing Law?
Relief Veterinarians
What is the Governing Law?
State Law
Tennessee Workman’s Compensation Act
Tennessee Employment Security Act

4. What is the Governing Law?
Relief Veterinarians
What is the Governing Law?
Federal Law
No statutory definition of “employee”
Internal Revenue Service – Revenue Ruling Twenty Factor Test

5. IRS Twenty Factor Test Instructions Training Integration
Relief Veterinarians
IRS Twenty Factor Test
Instructions
Training
Integration
Services Rendered Personally
Hiring, Supervising, and Paying Assistants

6. IRS Twenty Factor Test Continuing Relationship Set Hours to Work
Relief Veterinarians
IRS Twenty Factor Test
Continuing Relationship
Set Hours to Work
Full Time Required
Doing Work on Employer’s Premises
Order or Sequence Set

7. IRS Twenty Factor Test Oral or Written Reports
Relief Veterinarians
IRS Twenty Factor Test
Oral or Written Reports
Payment by Hour, Week, Month
Payment of Business and/or Traveling Expenses
Furnishing of Tools and Materials
Significant Investment

8. IRS Twenty Factor Test Realization of Profit or Loss
Relief Veterinarians
IRS Twenty Factor Test
Realization of Profit or Loss
Working for More than One Firm at a Time
Making Service Available to General Public
Right to Discharge
Right to Terminate

9. Sixth Circuit Court of Appeals
Relief Veterinarians
Sixth Circuit Court of Appeals
Superior Federal Court over the interpretation of Federal Law in Tennessee
Relies on Restatement (Second) of Agency

10. Sixth Circuit Court of Appeals Test
Relief Veterinarians
Sixth Circuit Court of Appeals Test
Right to Control the Manner or Means
Skill Required
Source of Instrumentalities and Tools
Location of Work
Duration of the Relationship

11. Sixth Circuit Court of Appeals Test
Relief Veterinarians
Sixth Circuit Court of Appeals Test
Ability to Assign Additional Projects to the Worker
Workers’ Discretion over Working Hours
Method of Payment
Worker’s Role in Hiring and Paying Assistants

12. Sixth Circuit Court of Appeals Test
Relief Veterinarians
Sixth Circuit Court of Appeals Test
Whether Work is Part of Regular Business of the Employer
Whether the Employer is in Business
Provision of Employee Benefits

13. Significance of Independent Contractor/ Employee Determination
Relief Veterinarians
Significance of Independent Contractor/ Employee Determination
IRS Presumes Worker is Employee
Burden of Proof is on Employer if Challenged
Employer can be Liable for Back Taxes, Penalty and Interest if Worker is Misclassified

14. Significance of Independent Contractor/ Employee Determination
Relief Veterinarians
Significance of Independent Contractor/ Employee Determination
Ramifications for Federal Employment Laws
Title VII of the Civil Rights Act of 1964
Age Discrimination in Employment Act
Family and Medical Leave Act
Employee Retirement Income Security Act

15. Significance of Independent Contractor/ Employee Determination
Relief Veterinarians
Significance of Independent Contractor/ Employee Determination
Ramifications under State Law
Tennessee Human Rights Act
Unemployment Compensation
Worker’s Compensation

16. Significance of Independent Contractor/ Employee Determination
Relief Veterinarians
Significance of Independent Contractor/ Employee Determination
Employers Required to Provide W-2 Forms in January
Independent Contractors should receive Form if Paid More than $600 in a Calendar Year

17. IRS Enforcement Wage and Hour Division of the US Department of Labor
Relief Veterinarians
IRS Enforcement
Wage and Hour Division of the US Department of Labor
Misclassification of Audit Program

18. Relief Practices in Health Care
Relief Veterinarians
Relief Practices in Health Care
Medical Profession
Veterinary Profession

19. Relief Veterinarians
To Maximize Argument that Relief Veterinarian is an Independent Contractor
Consult with a Lawyer
Prepare a Written Agreement

20. Written Agreement Points
Relief Veterinarians
Written Agreement Points
Relief Veterinarian is an Independent Contractor
Relief Veterinarian is Responsible for own Withholding, FICA and Medicare Taxes
Relief Veterinarian will receive a 1099 Reporting their Compensation

21. Written Agreement Points
Relief Veterinarians
Written Agreement Points
Relief Veterinarian may provide Relief Services to Other Veterinarians
Payment made to Entity Created by Relief Veterinarian rather than Individually
Compensation Paid for the Unit of Engagement rather than Hourly or Salary

22. Written Agreement Points
Relief Veterinarians
Written Agreement Points
Acknowledgement that Practice Provided No Training to Relief Veterinarian
Acknowledgement that Relief Veterinarian Provides Professional Services Comparable to Standard of the Community rather than Guidelines of Practice

23. Written Agreement Points
Relief Veterinarians
Written Agreement Points
Acknowledgement that Relief Veterinarian has Own Professional Liability Coverage
Acknowledgement that Relief Veterinarian has No Authority to Bind Practice

24. Written Agreement Points
Relief Veterinarians
Written Agreement Points
Acknowledgement that Relief Veterinarian has Own Professional Liability Coverage
Acknowledgement that Relief Veterinarian has No Authority to Bind Practice

25. Articles Relief Veterinarian: Rules to Live By
Relief Veterinarians
Articles
Relief Veterinarian: Rules to Live By
Christopher J. Allen, DVM, JD for DVM360
Is my Relief Veterinarian an Employee or an Independent Contractor?
Jeffrey L. Roth, JD for Alabama Veterinary Medical Association
Employees or Contract Labor?
Billie Scroggs for Georgia Veterinary Medical Association

26. Relief Veterinarians
Questions & Answers