An employer who fails to comply with workers compensation requirements may be assessed a penalty of up to $2500 and up to $100 per employee for each day of non compliance. Any person with control or responsibility over decisions to dispurse funds and salaries and who knowingly failed to secure payment of workers compensation shall be personally liable for the payment of penalties. Further, any such person shall not be allowed to bid or work on state projects for up to 5 years.

a) The person possesses or has applied for a federal employer identification number or social security number, or in the alternative, has agreed in writing to carry out the responsibilities imposed on employers concerning workers compensation.

b) The person has control and discretion over the means and manner of performance of the work, in that the result of the work, rather than the means or manner by which the work is performed, is the primary element bargained for by the employer.

c) The person has control over the time when the work is performed, and the time of performance is not dictated by the employer. However, this shall not prohibit the employer from reaching an agreement with the person as to completion schedule, range of work hours, and maximum number of hours to be provided by the person.

d) The person hires and pays the persons assistants, if any, and to the extent such assistants are employees, supervises the details of the assistants work.

e) The person holds himself or herself out to be in business for himself or herself.

f) The person has continuing or recurring business liabilities or obligations.

g) The success or failure of the persons business depends on the relationship of business receipts to expenditures.

h) The person receives compensation for work or services performed and remuneration is not determined unilaterally by the hiring party.

i) The person is responsible in the first instance for the main expenses related to the service or work performed. However, this shall not prohibit the employer or person offering work from providing the supplies or materials necessary to perform the work.

j) The person is responsible for satisfactory completion of work and may be held contractually responsible for failure to complete work.

k) The person supplies the principal tools and instrumentalities used in the work, except that the employer may furnish tools or instrumentalities that are unique to the employers special requirements or are located on the employers premises.

l) The person is not required to work exclusively for the employer.

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