Tex. Labor Code § 201.070
This is the official text of Tex. Labor Code § 201.070, part of Texas’s Labor Code — governs wages, workplace safety, and workers' compensation.
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§ 201.070. SERVICE AS PRODUCT DEMONSTRATOR; SALESMAN.
Official statutory text
In this subtitle, "employment" does not include:
(1) service by an individual as a product demonstrator if:
(A) the service is performed under a written contract between the individual performing the service and a person whose principal business is obtaining the service of a demonstrator for a third person for product demonstration purposes; and
(B) in contract and in fact the individual:
(i) is not treated as an employee with respect to that service for federal unemployment tax purposes;
(ii) is compensated for each demonstration or is compensated based on factors that relate to the work performed;
(iii) determines the method of performing the service;
(iv) provides each vehicle used to perform the service;
(v) is responsible for the completion of a specific job and is liable for failure to complete the job;
(vi) may accept or reject a job from a product demonstrator business;
(vii) is free from control by the principal business as to where the individual works;
(viii) controls solely opportunity for profit or loss; and
(ix) pays all expenses and operating costs, including fuel, repairs, supplies, and motor vehicle insurance;
(2) service by an individual as a direct seller if:
(A) the individual is engaged in the business of:
(i) in-person sales of consumer products to a buyer on a buy-sell basis, a deposit-commission basis, or a similar basis for resale in a home or in a place other than, and not affiliated with, a permanent retail establishment; or
(ii) sales of consumer products in a home or in a place other than, and not affiliated with, a permanent retail establishment;
(B) substantially all remuneration for the service, whether in cash or other form of payment, is directly related to sales or other output, including the performance of the service, and not to the number of hours worked; and
(C) the service is performed under a written contract between the individual and the person for whom the service is performed, and the contract provides that the individual is not treated as an employee with respect to the service for federal tax purposes; or
(3) service performed by an individual at a trade market for a wholesaler or sales representative of a wholesaler or manufacturer of consumer goods under a written contract, or as a salesman for a wholesaler of consumer goods, if the wholesaler or sales representative maintains a regular or seasonal place of business at a trade market facility in a municipality with a population of more than one million.
(1) service by an individual as a product demonstrator if:
(A) the service is performed under a written contract between the individual performing the service and a person whose principal business is obtaining the service of a demonstrator for a third person for product demonstration purposes; and
(B) in contract and in fact the individual:
(i) is not treated as an employee with respect to that service for federal unemployment tax purposes;
(ii) is compensated for each demonstration or is compensated based on factors that relate to the work performed;
(iii) determines the method of performing the service;
(iv) provides each vehicle used to perform the service;
(v) is responsible for the completion of a specific job and is liable for failure to complete the job;
(vi) may accept or reject a job from a product demonstrator business;
(vii) is free from control by the principal business as to where the individual works;
(viii) controls solely opportunity for profit or loss; and
(ix) pays all expenses and operating costs, including fuel, repairs, supplies, and motor vehicle insurance;
(2) service by an individual as a direct seller if:
(A) the individual is engaged in the business of:
(i) in-person sales of consumer products to a buyer on a buy-sell basis, a deposit-commission basis, or a similar basis for resale in a home or in a place other than, and not affiliated with, a permanent retail establishment; or
(ii) sales of consumer products in a home or in a place other than, and not affiliated with, a permanent retail establishment;
(B) substantially all remuneration for the service, whether in cash or other form of payment, is directly related to sales or other output, including the performance of the service, and not to the number of hours worked; and
(C) the service is performed under a written contract between the individual and the person for whom the service is performed, and the contract provides that the individual is not treated as an employee with respect to the service for federal tax purposes; or
(3) service performed by an individual at a trade market for a wholesaler or sales representative of a wholesaler or manufacturer of consumer goods under a written contract, or as a salesman for a wholesaler of consumer goods, if the wholesaler or sales representative maintains a regular or seasonal place of business at a trade market facility in a municipality with a population of more than one million.
Status: in_force · Read it on the official government site
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