Independent Contractor vs. Employee (Type of Relationship Factors)
Determining whether a worker is an employee or an independent contractor is an extremely important task in employment law. There are three sets of factors that determine whether an individual is an employee or independent contractor. (1) Behavioral; (2) Financial; and (3) Type of Relationship. This blog will focus on Type of Relationship Factors. Each of these factors is analyzed and an overall answer is determined.
Type of relationship factors focus on analyzing employee contracts, employee benefits and permanency of the relationship. An employment contract typically stipulates whether a worker is an employee or an independent contractor. A provision as follows would be included in the contract where the worker is an independent contractor:
“INDEPENDENT CONTRACTOR STATUS. Nothing in this Agreement is intended to constitute a partnership or a master and servant relationship between the Parties. The Agent shall at all times be an Independent Contractor of the Principal and not an Employee.”
However, having this clause in the employment contract alone is not enough to tip the scale to an independent contractor. The type of employee benefits an individual receives can determine whether that worker is an independent contractor or an employee. For instance, someone who receives a pension, paid vacation, sick days and disability insurance would likely be seen as an employee. Someone who does not receive any of these would more than likely be seen as an independent contractor. Further, the length of employment is a third type of relationship factor. That is, whether the worker is expected to work indefinitely or whether the worker is hired to work on only one or more specific projects.
If you or someone you know has a potential employment law claim and/or questions regarding your rights, contact the attorneys of The Ticktin Law Group for a complimentary consultation.