“Employee vs. Independent Contractor” - Unemployment Compensation coverage 

The term "employee" is not defined in statute.  When we refer to an individual as an "employee" that means an individual who is entitled to be covered for unemployment purposes. An "employee" for unemployment insurance purposes may include someone who is otherwise considered to be an "independent contractor".  In general, it is the nature of the relationship between an employer and the individuals who provide services to the employer that determines whether or not they are employees.

The services may be performed on a full-time, part-time, temporary, seasonal, or probationary basis.  They may be performed on or off your premises or in the employees' own homes.

Because it is the nature of the relationship that controls whether someone is an "employee" for unemployment purposes, a "contract" does not change the relationship from employer/employee to something else. The "ABC" test of the Vermont Statute Annotated, Title 21, Chapter 17 determines if the individual is an employee for unemployment insurance purposes.