Indiana Law Update
Minimum Wage and Direct Sales
On April 3, 2019, Indiana Governor Eric Holcomb signed legislation (S.B. 231) excluding a direct seller from the definition of “employee” under the state’s minimum wage law and unemployment compensation system, except under certain conditions.
A direct seller is a person engaged in only services performed by a person that is in the trade or business of selling, or soliciting the sale of, consumer products or services to any buyer on a buy-sell basis, deposit-commission basis, or similar basis, in any place other than in a permanent retail establishment; or selling, or soliciting the sale of, consumer products or services in any place other than in a permanent retail establishment:
· When substantially all the remuneration, whether or not paid in cash, for the performance of the services is directly related to sales or other output, including the performance of services, rather than the number of hours worked; and
· When the services performed by the person are performed pursuant to a written contract and the contract provides that the person who performs the services will not be treated as an employee for tax purposes under the contract.
The law is effective July 1, 2019.
Read IN S.B. 231