Idaho Code

Idaho Code § 72-1316 (2026)

Covered employment.

✓ current as of May 2026

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Covered employment.

(1) "Covered employment" means an individual’s entire service performed by him for wages or under any contract of hire, written or oral, express or implied, for a covered employer or covered employers. Unless expressly exempted, services performed by corporate officers are considered services in employment and are covered for purposes of this chapter.

(2) Notwithstanding any other provision of state law, services shall be deemed to be in covered employment if a tax is required to be paid or was required to be paid the previous year on such services under the federal unemployment tax act or if the director determines that such services are required to be covered under this chapter as a condition for full tax credit against the tax imposed by the federal unemployment tax act.

(3) Services covered by an election pursuant to section 72-1352, Idaho Code, and services covered by an election approved by the director pursuant to section 72-1344, Idaho Code, shall be deemed to be covered employment during the effective period of such election.

(4) Services performed by an individual for remuneration shall, for the purposes of the employment security law, be covered employment unless it is shown:

(a) That the worker has been and will continue to be free from control or direction in the performance of his work, both under his contract of service and in fact; and

(b) That the worker is engaged in an independently established trade, occupation, profession, or business.

(5) "Covered employment" shall include an individual’s entire service, performed within or both within and without this state:

(a) If the service is localized in this state; or

(b) If the service is not localized in any state but some of the service is performed in this state, and:

(i) The individual’s base of operations or the place from which such service is directed or controlled is in this state; or

(ii) The individual’s base of operations or place from which such service is directed or controlled is not in any state in which some part of the service is performed, but the individual’s residence is in this state.

(i) The service is performed entirely within such state; or

(ii) The service is performed both within and without such state, but the service performed without such state is incidental, temporary or transitory in nature or consists of isolated transactions, as compared to the individual’s service within the state.

(d) "Covered employment" shall include an individual’s service, wherever performed within the United States, or Canada, if:

(i) Such service is not covered under the unemployment compensation law of any other state, the Virgin Islands, or Canada; and

(ii) The place from which the service is directed or controlled is in this state.

(6) "Covered employment" shall include the services of an individual who is a citizen of the United States, performed outside the United States, except in Canada, in the employ of an American employer, other than service that is deemed "covered employment" under the provisions of subsection (5) of this section or the parallel provisions of another state’s law, if:

(a) The employer’s principal place of business in the United States is located in this state; or

(b) The employer has no place of business in the United States; but

(i) Is an individual who is a resident of this state; or

(ii) Is a corporation that is organized under the laws of this state; or

(iii) Is a partnership or a trust and the number of the partners or trustees who are residents of this state is greater than the number who are residents of any other state; or

(c) None of the criteria of provision (a) or (b) of this subsection is met but the employer has elected coverage in this state or, the employer having failed to elect coverage in any state, the individual has filed a claim for benefits based on such service, under the law of this state;

(d) "American employer" for purposes of this subparagraph means a person who is:

(i) An individual who is a resident of the United States; or

(ii) A partnership if two-thirds (2/3) or more of the partners are residents of the United States; or

(iii) A trust if all of the trustees are residents of the United States; or

(iv) A corporation organized under the laws of the United States or of any state.

(e) For purposes of this subsection, "United States" means the states, the District of Columbia, the Commonwealth of Puerto Rico, and the Virgin Islands.

(7) Any employer claiming that services performed for the employer, or remuneration paid by the employer, do not constitute covered employment or covered wages under this chapter shall make a report to the department of all pertinent facts on which said claim is based, which report shall be signed by the employer or an authorized representative.

Notes of Decisions

Cited in 44 cases, 1949–2016 · leading case: Bon Appetit Gourmet Foods, Inc. v. State Dep't of Emp., 793 P.2d 675 (Idaho 1990).

Sort: Relevance Newest Treatment

Bon Appetit Gourmet Foods, Inc. v. State Dep't of Emp., 793 P.2d 675 (Idaho 1990). · cites it 42× “Appellant challenges the provisions of Idaho Code § 72-1316 (d)(2) on the grounds that requiring employers to pay tax for unemployment compensation for independent contractors is facially unconstitutional.”

Giltner, Inc. v. Idaho Dep't of Com. & Labor, 179 P.3d 1071 (Idaho 2008). · cites it 34× “§ 72-1316(4) to establish that the worker was not engaged in covered employment. Here, the reclassified drivers were not "engaged in an independently established trade, occupation, profession, or business.”

Excell Constr., Inc. v. State, 116 P.3d 18 (Idaho 2005). · cites it 16× “Idaho Code § 72-1316 (4)(a) requires a showing “[t]hat the worker has been and will continue to be free from control or direction in the performance of his work, both under his contract of service and in fact ____” The appropriate *695 test in making this determination considers…”

W. Home Transp., Inc. v. Idaho Dep't of Labor, 318 P.3d 940 (Idaho 2014). · cites it 24× “” I.C. § 72-1316(1). “Wages” include “[a]ll remuneration for personal services from whatever source, including commissions and bonuses and the cash value of all remuneration in any medium other than cash.”

Emp. Sec. Agency v. Jt. Class \A\" Sch. Dist. No. 151", 400 P.2d 377 (Idaho 1965). · cites it 21× “§ 72-1316B setting forth a new exclusion in this area of covered employment; portions thereof read: “On and after January 1, 1962, the term ‘covered employment’ in addition to the definition contained in section 72-1316 shall include an individual’s entire service for wages when…”

Vendx Mktg. Co. v. Dep't of Emp., 841 P.2d 420 (Idaho 1992). · cites it 16× “NOTES [1] I.C. §§ 72-1316 and 72-1328 were amended after the audit period.”

John L. King v. State, Dept. of Emp., 715 P.2d 982 (Idaho 1986). · cites it 13× “The act defines “covered employment” as “an individual’s entire service .”

Swayne v. Dep't of Emp., 456 P.2d 268 (Idaho 1969). · cites it 16× “The issue presented by this case is whether a certain lease agreement, to which the appellant is a signatory, gives the appellant control of the lessee’s activities so as to constitute the lessee an employee within the terms of I.C. § 72-1316. 1 The undisputed evidence in this…”

Dep't of Emp. v. Brown Bros. Constr., Inc., 600 P.2d 783 (Idaho 1979). · cites it 12× “After an audit of appellant's payroll books, the Department of Employment determined that the tree fallers were not exempted from the unemployment insurance tax provisions of I.C. § 72-1316(d). This determination was submitted to the appeals examiner, who, after a hearing,…”

Melody's Kitchen v. Harris, 757 P.2d 190 (Idaho 1988). · cites it 25× “Melody’s Kitchen appealed from the decision of the Industrial Commission, raising three issues: (1) Did the claimant perform services in “covered employment” as an agent-driver or commission-driver within the provisions of I.C. § 72-1316? (2) Did the appeals examiner deny Mr.”

J.R. Simplot Co. v. State, 718 P.2d 1200 (Idaho 1986). · cites it 11× “Hence, there is no question as to the facts. Rather, it is the referee’s application of the law to those facts, and his conclusion that the seasonal potato loaders are employees of Simplot, which presents the only issue.”

Beale v. State, Dep't of Emp., 951 P.2d 1264 (Idaho 1997). · cites it 14× “§ 72-1366 are met. I.C. § 72-1366 does not explicitly require, as a condition of receiving benefits, an employee to prove that the employee was engaged in covered employment.”

Show all 44 citing cases →

— Idaho Code § 72-1316(1) — 1 case

W. Home Transp., Inc. v. Idaho Dep't of Labor, 318 P.3d 940 (Idaho 2014). “” I.C. § 72-1316(1). “Wages” include “[a]ll remuneration for personal services from whatever source, including commissions and bonuses and the cash value of all remuneration in any medium other than cash.”

— Idaho Code § 72-1316(2) — 1 case

Totusek v. Dep't of Emp., 535 P.2d 672 (Idaho 1975).

— Idaho Code § 72-1316(4) — 4 cases

Giltner, Inc. v. Idaho Dep't of Com. & Labor, 179 P.3d 1071 (Idaho 2008). “§ 72-1316(4) to establish that the worker was not engaged in covered employment. Here, the reclassified drivers were not "engaged in an independently established trade, occupation, profession, or business.”

Excell Constr., Inc. v. State, 116 P.3d 18 (Idaho 2005). “Idaho Code § 72-1316 (4)(a) requires a showing “[t]hat the worker has been and will continue to be free from control or direction in the performance of his work, both under his contract of service and in fact ____” The appropriate *695 test in making this determination considers…”

Excell Constr., Inc. v. Idaho Dep't of Com. & Labor, 186 P.3d 639 (Idaho 2008).

— Idaho Code § 72-1316(4)(a) — 2 cases

— Idaho Code § 72-1316(4)(b) — 3 cases

Excell Constr., Inc. v. Idaho Dep't of Com. & Labor, 186 P.3d 639 (Idaho 2008).

— Idaho Code § 72-1316(a) — 9 cases

Emp. Sec. Agency v. Jt. Class \A\" Sch. Dist. No. 151", 400 P.2d 377 (Idaho 1965). “§ 72-1316B setting forth a new exclusion in this area of covered employment; portions thereof read: “On and after January 1, 1962, the term ‘covered employment’ in addition to the definition contained in section 72-1316 shall include an individual’s entire service for wages when…”

Vendx Mktg. Co. v. Dep't of Emp., 841 P.2d 420 (Idaho 1992). “NOTES [1] I.C. §§ 72-1316 and 72-1328 were amended after the audit period.”

John L. King v. State, Dept. of Emp., 715 P.2d 982 (Idaho 1986). “The act defines “covered employment” as “an individual’s entire service .”

Software Assocs. v. Dept. of Emp., 715 P.2d 985 (Idaho 1986).

Beale v. State, Dep't of Emp., 951 P.2d 1264 (Idaho 1997). “§ 72-1366 are met. I.C. § 72-1366 does not explicitly require, as a condition of receiving benefits, an employee to prove that the employee was engaged in covered employment.”

— Idaho Code § 72-1316(a)(6) — 3 cases

Dep't of Emp. v. Ada Cnty. Fair Bd., 532 P.2d 933 (Idaho 1974).

Ass'n of Idaho Cities v. Dep't of Emp., 521 P.2d 1025 (Idaho 1974).

— Idaho Code § 72-1316(b) — 1 case

State v. Idaho Allied Christian Forces, 669 P.2d 201 (Idaho 1983).

— Idaho Code § 72-1316(d) — 16 cases

Dep't of Emp. v. Brown Bros. Constr., Inc., 600 P.2d 783 (Idaho 1979). “After an audit of appellant's payroll books, the Department of Employment determined that the tree fallers were not exempted from the unemployment insurance tax provisions of I.C. § 72-1316(d). This determination was submitted to the appeals examiner, who, after a hearing,…”

Bon Appetit Gourmet Foods, Inc. v. State Dep't of Emp., 793 P.2d 675 (Idaho 1990). “Appellant challenges the provisions of Idaho Code § 72-1316 (d)(2) on the grounds that requiring employers to pay tax for unemployment compensation for independent contractors is facially unconstitutional.”

Swayne v. Dep't of Emp., 456 P.2d 268 (Idaho 1969). “The issue presented by this case is whether a certain lease agreement, to which the appellant is a signatory, gives the appellant control of the lessee’s activities so as to constitute the lessee an employee within the terms of I.C. § 72-1316. 1 The undisputed evidence in this…”

Dep't of Emp. v. Bake Young Realty, 560 P.2d 504 (Idaho 1977).

— Idaho Code § 72-1316(d)(1) — 6 cases

Larsen v. State, Dept. of Emp., 679 P.2d 659 (Idaho 1984).

Vendx Mktg. Co. v. Dep't of Emp., 841 P.2d 420 (Idaho 1992). “NOTES [1] I.C. §§ 72-1316 and 72-1328 were amended after the audit period.”

Software Assocs. v. Dept. of Emp., 715 P.2d 985 (Idaho 1986).

J.R. Simplot Co. v. State, 718 P.2d 1200 (Idaho 1986). “Hence, there is no question as to the facts. Rather, it is the referee’s application of the law to those facts, and his conclusion that the seasonal potato loaders are employees of Simplot, which presents the only issue.”

Melody's Kitchen v. Harris, 757 P.2d 190 (Idaho 1988). “Melody’s Kitchen appealed from the decision of the Industrial Commission, raising three issues: (1) Did the claimant perform services in “covered employment” as an agent-driver or commission-driver within the provisions of I.C. § 72-1316? (2) Did the appeals examiner deny Mr.”

— Idaho Code § 72-1316(d)(1)(A) — 1 case

In Re Guajardo, 809 P.2d 500 (Idaho 1991).

— Idaho Code § 72-1316(d)(1)(B) — 1 case

In Re Guajardo, 809 P.2d 500 (Idaho 1991).

— Idaho Code § 72-1316(d)(2) — 2 cases

— Idaho Code § 72-1316(d)(2)(A) — 1 case

— Idaho Code § 72-1316(d)(l) — 7 cases

John L. King v. State, Dept. of Emp., 715 P.2d 982 (Idaho 1986). “The act defines “covered employment” as “an individual’s entire service .”

Larsen v. State, Dept. of Emp., 679 P.2d 659 (Idaho 1984).

Vendx Mktg. Co. v. Dep't of Emp., 841 P.2d 420 (Idaho 1992). “NOTES [1] I.C. §§ 72-1316 and 72-1328 were amended after the audit period.”

Software Assocs. v. Dept. of Emp., 715 P.2d 985 (Idaho 1986).

— Idaho Code § 72-1316(d)(l)(A) — 3 cases

John L. King v. State, Dept. of Emp., 715 P.2d 982 (Idaho 1986). “The act defines “covered employment” as “an individual’s entire service .”

Hous. Auth. of the City of Wilder v. State, 809 P.2d 500 (Idaho 1991).

— Idaho Code § 72-1316(d)(l)(B) — 3 cases

John L. King v. State, Dept. of Emp., 715 P.2d 982 (Idaho 1986). “The act defines “covered employment” as “an individual’s entire service .”

Hous. Auth. of the City of Wilder v. State, 809 P.2d 500 (Idaho 1991).

— Idaho Code § 72-1316(e) — 1 case

Heller v. Int'l Transp., Inc., 481 P.2d 602 (Idaho 1971).

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