West Virginia primarily uses a multi-factor test to distinguish employees from independent contractors, focusing on control, integration into the business, and economic realities. Gig workers like rideshare drivers often lean toward contractor status under state law, but misclassification risks penalties.
Classification Test
The West Virginia Employment Law Worker Classification Act (Article 5I) defines independent contractors for areas like unemployment, workers’ comp, human rights, and wage laws. Workers qualify as contractors if they sign acknowledging contractor status and meet at least three of nine criteria, such as having a business location, multiple clients, autonomy in work methods, and bearing business risks/profits.
Key factors include:
- Freedom from control beyond contract terms.
- Service outside the principal’s usual business.
- Independent trade, occupation, or business established by the worker.​
Gig Economy Context
Gig platforms classify drivers and delivery workers as contractors, supported by the Act’s aim to clarify amid “gig economy” and “sharing economy” growth. Critics argue it incentivizes reclassification, stripping protections like overtime and unemployment; supporters cite flexibility for over 90,000 freelancers.
Recent Developments
Governor Patrick Morrisey’s 2026 agenda promotes “portable benefits” for independent workers via the Workforce Readiness Act, allowing voluntary access to health/financial perks without forcing employee status. This builds on federal pushes like the Saving Gig Economy Taxpayers Act to ease 1099 reporting burdens.
