The US Department of Labor (DOL) just issued a final rule indicating when a business has an “independent contractor” situation vs. an “employee” situation.
This new rule is effective as of March 11, 2024.
Notably, the rule indicates that IRS tax status for an individual may be different than the independent contractor/employee classification of a person under this DOL rule, so you cannot simply rely on the person’s tax filings for compliance.
There is guidance for “small entities” and FAQs on the website as well, and there are some examples covering situations like tradespeople, graphic designers, nurses, cooks, landscapers, etc.
Small entity guidance: https://www.dol.gov/agencies/whd/government-contracts/small-entity-compliance-guide