Here’s the newest way to decide whether a new hire’s an employee or an independent contractor: a cage match.

IRS might not be masters of high-flying athleticism, but that’s not stopping a lawsuit against World Wrestling Entertainment (WWE) from happening. The federal suit is claiming the Stamford, CT, company has misclassified its performers and independent contractors (ICs) for several years, if not longer.

Brought forth by former wrestlers Scott “Raven” Levy, “Above Average” Michael Sanders, and Christopher “Kanyon” Kluscartis, the suit is seeking class-action status, consisting of any performer who was under a WWE contract between 2002 and 2008. These three, along with all other wrestlers, were classified as ICs and denied basic benefits like health care (might have been useful, considering the job requirements), paid sick time and vacation.

As a result, the WWE also failed to withhold federal employment taxes, Social Security and Medicare from paychecks — the tax implications are why the case was bumped up to federal court.

IRS has guidance in place regarding the classification of workers as either ICs or employees, a major factor of which is how much control an employer has over its workers.

In this case, WWE has a solid level of control — the wrestlers’ physical training requirements, haircuts, costumes and job location are all determined by the company. The performers are also told the specific dialogue and “story lines” to follow while on the job.

WWE has a few arguments on its side: All wrestlers must sign contracts acknowledging their status as independent contractors, and the lesser-known performers are responsible for their own travel arrangements and expenses.

Who will win this legal brawl? Tune in to Saturday night’s “Compliance Smackdown!” to see the events unfold.

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Tags: Employee, Independent Contractor, Misclassification, Travel expenses, WWE