Unemployment Appeal Victory–Independent Contractor Model Preserved

Phillip Ray won a New York unemployment appeal for a client that used independent contractors for its early intervention child services. The Appeal Board reversed its initial decision and found that the client’s relationship with the independent contractors had insufficient indicia of control to convert them into employees. The Appeal Board recognized that the County, with whom the client contracted, was the source of the control and direction of the client’s independent contractors. As a result, the client was able to maintain its business model and avoid paying payroll taxes for the independent contractors.