TENNESSEE CODE ANNOTATED

Title 50  Employer And Employee  
Chapter 7  Tennessee Employment Security Law  
Part 2  Definitions

50-7-207.  "Employment" and related definitions.

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(c) "Excluded Service." For purposes of this section, "excluded service" means any of the following, unless the employing unit for which the service is performed is liable for a federal tax on the remuneration paid for the service against which credit may be taken for premiums paid under this chapter, or unless the employing unit has elected that the service shall be deemed to constitute employment subject to this chapter pursuant to § 50-7-405, in which cases the service shall be "included service" as provided in subsection (b):

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(12)  Service performed by a direct seller, including an individual engaged in the trade or business of the delivery or distribution of newspapers or shopping news, if: 
 
(A)  The individual is engaged in the trade or business of selling or soliciting the sale of consumer products to any buyer on a:
 
 (i)  Buy-sell basis;
 (ii)  Deposit-commission basis; or
 (iii)  Any similar basis that the United States secretary of treasury prescribes by regulations, for resale by the buyer or any other individual, in the home or otherwise than in a permanent retail establishment; or

 
(B)  The individual is engaged in the trade or business of selling or soliciting the sale of consumer products to a consumer in the home or somewhere other than in a permanent retail establishment; and
 
 (i)  Substantially all of the remuneration for the services performed as a direct seller is directly related to sales or output, including the performance of services, rather than to the number of hours worked; and
 (ii)  The services performed by the individual are performed pursuant to a written contract between the individual and the person for whom the services are performed, and the contract provides that the individual will not be treated as an employee with respect to the services for federal tax (FUTA) purposes;

History: Acts 1947, ch. 29, § 2; 1949, ch. 20, § 1; 1949, ch. 226, § 7; C. Supp. 1950, § 6901.2 (Williams, § 6901.26); Acts 1957, ch. 146, § 1; 1961, ch. 70, § 1; impl. am. Acts 1971, ch. 162, § 3; Acts 1971, ch. 204, § 2; 1973, ch. 130, § 2; 1974, ch. 460, § 1; 1977, ch. 330, §§ 2-9, 32; 1978, ch. 744, §§ 1, 2; T.C.A. (orig. ed.), § 50-1309; Acts 1983, ch. 368, §§ 1, 2; 1984, ch. 701, § 1; 1985, ch. 318, § 11; 1986, ch. 597, § 1; 1987, ch. 148, §§ 2-4; 1989, ch. 333, §§ 1, 2; 1990, ch. 777, § 1; 1992, ch. 694, §§ 1, 2; 1993, ch. 194, §§ 1-7; 1995, ch. 239, § 2; 1997, ch. 104, §§ 1-3; 1999, ch. 76, §§ 1, 2; 2004, ch. 556, § 1; 2004, ch. 946, § 1; 2011, ch. 416, § 1; 2019, ch. 337, §§ 3, 4.