Virgin Islands Government seal

Department of Labor

Unemployment Insurance

Introduction & Background

Important Highlights


Federal Unemployment Tax Act (FUTA)

Experience Rating

Reimbursing Employers

Records, Reports, and Audits

Independent Contractors

Localized and Non-Localized Employment

Reciprocal Coverage

Combined Wage Claims

Interstate Claims

Benefit Payment Program

Employment Service




Independent Contractors

The Agency will determine whether individual workers are employees or independent contractors. The law does not cover an independent contractor. The ordinary rules of the common law relative to "master and servant" do not apply in defining an employment relationship. Service will be considered covered, unless the individual performing such service can be clearly shown to be an independent contractor.


Reciprocal Coverage Agreement

If, after applying all the above localization tests to a given set of circumstances, the individual's service is not found to be clearly subject to any one state law, the employer may elect to cover in one state all of the individual's service under a reciprocal coverage agreement. Such an agreement must be approved by the states involved. Contact the Agency for more information if you have workers who perform service in more than one state, including the Virgin Islands.