Independent Contractor Status: Relationship of the Parties

Relationship of the Parties

Recent court decisions are relevant in determining worker status. Most of these facts reflect how the worker and the business perceive their relationship to each other. 

• Employee Benefits – Providing a worker with employee benefits traditionally associated with employee status has been an important fact in several recent court decisions. If a worker receives employee benefits, such as paid vacation days, paid sick days, health insurance, life or disability insurance, or a pension, this constitutes some evidence of employee status. If a worker is excluded from a benefit plan because the worker is not considered an employee by the business, this is relevant (though not conclusive) in determining the worker’s status as an independent contractor.

• Written Contracts – Courts often look at the intent of the parties. This is most often embodied in their contractual relationship. A written contract or agreement describing the worker as an independent contractor is evidence of the parties’ intent for the worker to be an independent contractor. However, a written contract in and of itself is not sufficient evidence for determining worker status. The facts and circumstances under which a worker performs services are determinative of the worker’s status.

The online or onsite Independent Contractor Status Determination course will help you analyze the specifics of your situation for correct independent contractor and employee classifications.

Notice:  Alliance Training and Consulting, Inc. provides the contents of this page for general purposes only. You should not substitute this information for individual consultation with a qualified professional in the field. Alliance Training and Consulting, Inc. is not engaged in rendering legal services.

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