Third-Party Payer OK for Game Officials but Not for Game Workers

March 29, 2018 • Amy Campbell

hr laws

Many districts are now using private companies to manage payment to game officials, and some of the private companies are seeking to expand their services to payment of other game help, including concession stand workers, ticket takers, and parking lot attendants. These private companies have claimed game officials and game workers are independent contractors, and the companies will issue the workers 1099 forms.

While game officials meet the definition of independent contractors according to the Department of Labor (DOL) and Internal Revenue Services (IRS), game workers do not. Districts do not exert direct control over the selection and assignment of game officials. However, districts do have control over the selection and assignment of game workers. Additionally, districts control the tools and equipment used by game help, such as the concession stand facilities and equipment. These factors would cause the DOL and IRS to conclude that game workers are employees of the district and not independent contractors. Such misclassification could result in the district being liable for unpaid taxes, back pay, and penalties.

More guidance about independent contractors can be found in the HR Library.

Tagged: Compensation, "Department of Labor", DOL