The federal Immigration Reform and Control Act (IRCA) requires that all employers with 3 or more employees verify that their employers hired after November 1, 1986 are legally entitled to be employed in the United States. This requirement applies to "employees", not to "independent contractors".

Regulations issued by the Immigration and Naturalization Service (INS), located in the Code of Federal Regulations at 8 CFR Sect. 274a.1(j). provide 8 factors to be considered by the INS in determining independent contractor status:

Factors include, but are not limited to whether the individual or entity: (See 8 C.F.R. 274a.1(j))

                    1. supplies the tools or materials

                    2. makes services available to the general public

                    3. works for a number of clients at the same time

                    4. has an opportunity for profit or loss as a result of labor or services provided

                    5. invests in the facilities for work 

6. directs the order or sequence in which the work is to be done

7 determines the hours during which the work is to be done.

Whether an individual or entity is an independent contractor, regardless of what the individual or entity calls itself (emphasis added) is determined on a case-by-case basis.