Indiana uses the IRS common law guidelines to determine if a gig worker qualifies as an independent contractor rather than an employee, particularly for workers’ compensation under IC 22-3-6-1(b)(7). For wage and hour laws, IC 22-2-2-3 exempts independent contractors who are free from control and direction in performing services. The state aligns with federal DOL’s economic reality factors, including control over work, opportunity for profit/loss, investment in equipment, skill required, permanence of relationship, and whether the work is integral to the business.​
Federal Influence on Gig Workers
The DOL’s 2024 rule, effective March 2024, applies a six-factor “economic realities” test without prioritizing any single factor, impacting gig platforms like Uber and DoorDash. Platforms maintain that drivers remain contractors due to flexibility in schedules and multi-apping, but misclassification risks back wages, taxes, and penalties. Indiana follows this for FLSA purposes, with no state-specific ABC test or gig economy carve-outs enacted as of 2025.​
Key Differences: Employee vs. Contractor
Gig workers in Indiana are typically classified as contractors absent evidence of employee-like control, but disputes hinge on totality of circumstances. Consult Indiana DOL or legal counsel for specific cases, as misclassification enforcement targets exploitation risks.​
SOURCES
[1](https://www.in.gov/wcb/independent-contractors/)
[2](https://www.in.gov/dol/wage-and-hour/worker-misclassification/)
[3](https://law.justia.com/codes/indiana/title-22/article-2/chapter-2/section-22-2-2-3/)
[4](https://www.mcneelylaw.com/department-of-labor-releases-new-independent-contractor-rule/)
[5](https://www.ibj.com/articles/new-rule-tightens-worker-classification-standards-uber-lyft-say-drivers-wont-be-affected)
