Employee status

(a) In general Section 3304(a) of the Internal Revenue Code of 1986, as previously amended by this title, is amended— (1) in paragraph (33), by striking and at the end; (2) by redesignating paragraph (34) as paragraph (35); and (3) by inserting after paragraph (33) the following new paragraph: (34) an individual performing any service shall be considered an employee and not an independent contractor for the purpose of the State law, unless— (A) the individual is free from control and direction in connection with the performance of the service, both under the contract for the performance of service and in fact; (B) the service is performed outside the usual course of the business of the employer; and (C) the individual is customarily engaged in an independently established trade, occupation, profession, or business of the same nature as that involved in the service performed; and. (b) Effective date The amendments made by subsection (a) shall apply to weeks of unemployment beginning on or after the earlier of— (1) the date the State changes its statutes, regulations, or policies in order to comply with such amendments; or (2) January 1, 2027.