LCO No. 546 1 of 2
General Assembly Proposed Bill No. 5226
January Session, 2019
LCO No. 546
Referred to Committee on LABOR AND PUBLIC EMPLOYEES
Introduced by:
REP. KLARIDES, 114th Dist.
AN ACT CLARIFYING CERTAIN UNEMPLOYMENT COMPENSATION
PROVISIONS AS APPLICABLE TO INDEPENDENT CONTRACTORS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
That subdivision (5) of subsection (a) of section 31-222 of the general 1
statutes be amended to exempt services performed by an individual as 2
a producer with a service contract company or insurance agency that 3
provides finance and insurance products and service to the automotive 4
market, provided the following conditions are met: 5
(1) The service is provided by an individual producer who is 6
otherwise engaged in an employment relationship with a business or 7
trade involving automotive sales; 8
(2) The producer is, and has been, free from control and direction by 9
any service contract company or insurance agency that provides 10
finance and insurance products and service to the automotive market 11
in connection with the actual performance of such services; and 12
(3) The producer is treated by the service contract company or 13
insurance agency that provides finance and insurance products and 14
service to the automotive market as an independent contractor for all 15 Proposed Bill No. 5226
LCO No. 546 2 of 2
purposes, including, but not limited to, federal and state taxation, 16
workers' compensation, choice of hours worked and choice to accept 17
referrals from multiple entities without consequence. 18
Statement of Purpose:
To clarify unemployment tax law so that certain independent
contractors are not improperly treated as employees.