Arizona Enacts New Law Aimed at Clarifying the Independent Contractor Relationship

    View Authors September 2016
    A determination that an individual is an employee rather than an independent contractor can have significant legal, tax and other financial implications for the employing entity. Nonetheless, employing entities often inadvertently misclassify workers as independent contractors, exposing themselves to significant wage and tax liability. To help clarify the relationship between employing units and workers and reduce the risk of exposure from misclassification, Arizona has enacted a new law, effective on August 6, 2016, known as the Declaration of Independent Business Status law (DIBS). This alert contains important information about the new law.