LIABLITY FOR INDEPENDENT CONTRACTOR

TOPIC OF THE DAY

- THE DEFINITION OF INDEPENDENT CONTRACTOR

- THE LEGAL RELATIONSHIP BETWEEN AN INDEPENDENT CONTRACTOR AND EMPLOYER

- EXCEPTIONS TO THE PRINCIPLE OF INDEPENDENT CONTRACTORS

THE DEFINITION OF INDEPENDENT CONTRACTOR

An independent contractor typically refers to someone who provides services to another entity under a contract and retains control over how the work is performed. This classification is important for tax and legal purposes, as independent contractors are not considered employees and are responsible for their own taxes and benefits. Key factors in determining independent contractor status often include the level of control over the work, the method of payment, and whether the work is part of the hiring entity's regular business.

THE LEGAL RELATIONSHIP BETWEEN AN INDEPENDENT CONTRACTOR AND EMPLOYER

This is governed by various laws and regulations, including common law principles and statutes. Courts often consider factors such as the degree of control the employer has over the contractor's work, the method of payment, the provision of benefits, and the permanency of the relationship. See the case of United States v. Silk where the Supreme Court established a test for determining worker classification, emphasizing control and independence. Additionally, Section 530 of the Revenue Act provides safe harbor provisions for employers who may have misclassified workers as independent contractors.

EXCEPTIONS TO THE PRINCIPLE OF INDEPENDENT CONTRACTORS

This includes various legal tests and provisions that may classify certain workers as employees despite being labeled as independent contractors. For example, under the "ABC test" used in some jurisdictions, workers are presumed to be employees unless they meet specific criteria regarding control, independence, and the nature of the work performed. Additionally, certain statutes, such as the Fair Labor Standards Act (FLSA), provide specific criteria for determining employee status. See the case of Dynamex Operations West, Inc. v. Superior Court in California which established tests for determining worker classification.