§233-1  Certain relationship deemed as thatof employer-employee.  Whenever a person, firm, corporation, or the like,shall engage or continue in this State in the business of selling tangiblepersonal property, and shall cause such property to be distributed to, by, orthrough representatives, distributors, dealers, salespersons, peddlers,canvassers, carriers, truckers, or the like, the department of taxation mayadopt, in the manner provided by law, one or more rules or regulationsproviding that for the purposes of the tax laws administered by the departmentthe group, class, or category of persons or business described therein (to bedetermined by the department as may be appropriate for the purposes of theparticular rule or regulation) shall, irrespective of whether the relationshipor class of business otherwise would be deemed that of seller and buyer,principal and agent, or master and servant, be deemed to be that of employerand employee; provided that no rule or regulation adopted under this sectionshall apply to any group, class, or category of persons or business as to whichthe department shall determine, or it shall be shown:

(1)  That the potential employee has been and willcontinue to be free from control or direction over the performance of thebusiness or services undertaken by the potential employee, and also

(2)  That the business or services are performedoutside of all the places of business of the potential employer, and also

(3)  That the potential employee is customarily engagedin an independently established trade, occupation, or business of the samenature as that involved in the business or services in which the potentialemployee is engaged or which the potential employee has undertaken for, with,or at the behest of the potential employer.

As used in paragraphs (1), (2), and (3)"potential employee" means the person who by such rule or regulationwould be classed as an employee, and "potential employer" means theperson, firm, corporation, or the like, who by such rule or regulation would beclassed as the employer. [L 1955, c 195, §1; ree L 1959, c 277, §5(a); am L Sp1959 2d, c 1, §16; Supp, §117A-1; HRS §233-1; gen ch 1985, 1993]

 

Cross References

 

  Rules, see chapter 91.