Employee or Independent Contractor?
1. A painting business hires a painter. The company has the worker sign a written agreement in
which the worker agrees he is an independent contractor. The company supplies the paint,
brushes, ladders and other equipment. The company pays the worker an hourly rate. The
company tells the worker what to do and decides if it was done satisfactorily. The painter
works at several different jobs over a period of several months.
2. A company hires an outside salesperson to sell its products. The salesperson is responsible
for selling product in a territory assigned by the company. She sets her own hours, uses
company order forms and brochures for generating sales and attends mandatory monthly
company sales meetings. She is paid entirely by commission at a rate set by the company.
3. Joseph is a carpenter/handyman, works for Company A when they need him, and has been
doing so for 15 years. He has his own tools and is not controlled in any way as far as job
performance. Company A will basically tell him what they need built or repaired and the time
frame for completion. The company would reimburse him for any materials needed for the job.
Joseph bills them for materials and labor at the end of the job, and lists payment terms on his
invoice. Joseph also works as a handyman and carpenter for other companies as well.