The fact that real estate agents are accountable to brokers can pollute water compared to other areas where relationships between independent contractors are clearer. Real estate agents have more autonomy than an employee, but the necessary supervision of a broker is a unique factor. Business lawyers often have to wear several hats, and this may be the case especially for legal issues as fundamental as the status of workers. Nevertheless, the lawyer`s role in assisting clients should not be underestimated in these circumstances. Help your customers evaluate what you are trying to do, what is realistic and whether your customers are reasonable. The decision to hire an employee or an independent contractor is an important decision with denfing in a large number of cakes, with the provisions of the IRS, the Ministry of Labour and Labour Laws and the public authorities of unemployment insurance. In fact, it is difficult to think of a more consequential business decision. But paradoxically, the question of whether someone should be engaged in one function or another can hardly attract the attention of businessmen. Finally, independent entrepreneurs are traditional independent businessmen or professionals. It makes sense that they bring their own ladder, shovel or brush. A company that claims to have independent contractors, but provides an office, a chair, a computer, software and a phone – everything they need – can`t be very convincing in a state of work dispute. As this example suggests, this problem is perhaps the most common in office work. Yet it can occur in virtually any environment.
In the high-tech age, it is not easy to determine exactly what is considered tools, accessories and equipment. The safest bet may be to make sure you don`t provide anything. But it can`t be practical. (For possible ways to get around this puzzle, see No. 5 “Figures per hour” below.) As a lawyer who advises in this area, you will receive as many facts as possible from your client and try to be creative. There is no clear line that says you cannot cover the costs of an independent contractor, but it may indicate that the worker is an employee. Traditionally, all of these items must be included in the price you pay the independent contractor for a finished product. As a result, refund and refund policies will likely be reviewed if your client is involved in a worker classification dispute.
One of the classic signs of employee status is a clock or adjusted office hours. On the other hand, self-employed contractors would normally have to pay for the result, not exactly when or as the worker does. See Rev. Mr. Rul. 87-41, 1987-1 C.B 296, z. 7-8. This does not mean that an employer cannot control the hours that an independent contractor works. According to many state and federal laws, the merits of certain acts can be considered a reference to employer-type control over the worker. One of the characteristics of an independent contracting relationship is that the independent contractor has the ability to control where, when and how he does his job. From a legal point of view, the main distinction between workers and self-employed contractors is the control that the company has over the individual worker. If the company has essential control, it is likely that the person will be considered an employee.
But if the company has very little control and individuals have the freedom to do their job as they see fit, they are more likely to be considered independent contractors. Tax, professional, professional and insurance authorities are waiting for a written contract stipulating that the worker is an independent contractor and that, as such, he is paid without withholding tax, without benefits, etc. See Illinois Tri-Seal Prods., Inc. v. United States, 353 F.2d 216, 218 (1965). Clearly, such a contract does not alone mean that the worker is actually an independent contractor, but the absence of a written contract will make the worker`s status much more likely.