K & D Auto Body, Inc. v. Division of Employment Security

**What happened:** K & D Auto Body, a company that operates tow trucks, tried to classify its tow truck drivers as independent contractors rather than employees. The Missouri Division of Employment Security disagreed and said the drivers should be considered employees. This classification matters because employees are entitled to unemployment benefits and other protections that independent contractors don't receive. K & D appealed this decision to court. **What the court decided:** The appellate court sided with the Division of Employment Security. The court used two tests to make this determination: the "common law right-to-control test" and the "IRS twenty-factor analysis." Both tests look at how much control the company has over workers and how they perform their jobs. The court found that K & D had enough control over the tow truck drivers to make them employees, not independent contractors. **Why this matters for workers:** This ruling protects workers from being misclassified by their employers. When companies incorrectly label employees as independent contractors, workers lose access to unemployment benefits, workers' compensation, and other employment protections. This decision reinforces that courts will look at the actual working relationship, not just what the employer calls it, when determining worker status.