Skyrocketing unemployment increases draw attention to independent contractors

With more than 500,000 unemployment claims being filed in Nevada in the first half of 2020, a recent WalletHub ranking named Las Vegas (with an estimated 31.6% unemployment rate) as the U.S. city most devastated by COVID-19-related unemployment. Not far behind, Reno’s approximately 20.1% jobless rate earned it a spot as the 18th most ravaged U.S. city.

Recent news cycles also have been dominated with stories about out-of-work Nevadans who have been unable to obtain unemployment benefits through Nevada’s Department of Employment, Training, and Rehabilitation (DETR). Following website crashes and perceived administrative inefficiencies, in July, the Nevada judicial system authorized an inquiry to determine what is preventing benefits from issuing to those who need them most.

Independent contractor status

At the same time the  DETR is facing increased public and judicial scrutiny, it must ensure it has sufficient funds to pay unemployment benefits in the middle of a statewide fiscal emergency. One potential source of funds the agency appears to be exploring is to recoup unemployment contributions from businesses that have hired individuals to work as independent contractors (when, in the department's view, they should have been classified as employees).