Kentucky classifies gig workers as employees or independent contractors using multi-factor tests focused on control, business nature, and economic realities, rather than a strict ABC test. Platforms like Uber and Lyft treat drivers as contractors, but misclassification risks penalties for companies and lost protections for workers.​
Classification Tests
Kentucky’s Office of Unemployment Insurance applies the “Right to Control” test, examining factors like who controls work methods, supervision levels, scheduling, payment type, and equipment provision. The “Nature of Business” test checks if the work is integral to the employer’s operations or typically done by employees. For workers’ compensation, courts use a six-factor “economic realities” test from Oufafa v. Taxi (2023), weighing integration into business, permanency, investment in facilities, skill required, relationship intent, and employer control.​
Gig Economy Application
Gig workers on apps like Uber or DoorDash are generally classified as independent contractors if they control their schedules, use personal vehicles, serve multiple clients, and perform non-core tasks without direction. However, exclusive reliance on one platform, app-mandated routes, or rating systems suggesting control can reclassify them as employees, entitling them to minimum wage, overtime, unemployment, and workers’ comp. No gig-specific statutes exempt platforms; federal DOL rules also influence via economic dependence analysis.​
Implications
Employees gain protections like tax withholding, benefits eligibility, and injury coverage, while contractors handle self-employment taxes and lack these safeguards. Businesses face audits, back wages, and fines for misclassification; workers can contact the KY Labor Cabinet or UI Tax Audit Branch for determinations. Recent 2026 laws focus elsewhere, leaving these tests intact.​
SOURCES
[1](https://www.workinjuryadvisor.com/how-is-an-independent-contractor-defined-in-kentucky/)
[2](https://www.mvmlaw.com/blog/vehicle-and-driver-requirements-for-uber-and-lyft-in-lexington-ky/)
[3](https://dotd.la.gov/about/office-of-operations/intelligent-transportation-systems/its-programs-and-projects/connected-and-autonomous-vehicles/)
[4](https://www.reminger.com/report-5274)
[5](https://www.yahoo.com/news/articles/louisiana-enforce-hands-free-driving-003935831.html)
