Control Determines Independent Contractor Versus Employee

An appellate court decision showed that labeling a worker as an independent contractor and having an agreement stating as such does not determine the worker’s status. In this case, insurance adjusters who used their own phones and cars and signed an independent contractor agreement were classified as employees because of the extent of control exercised over them. The court looked at 6 factors, and noted that the workers were economically dependent on the company. Result: The employer owed overtime time under the Fair Labor Standards Act. #IdeaoftheDay

Check out today’s new blog post!