# Employee vs. Independent Contractor



## krytenTX (May 7, 2015)

*1. INSTRUCTIONS:*
An Employee receives instructions about when, where and how the work is to be performed.

*An Independent Contractor does the job his or her own way with few, if any, instructions as to the details or methods of the work.*

*2. TRAINING:*

Employees are often trained by a more experienced employee or are required to attend meetings or take training courses.

*An Independent Contractor uses his or her own methods and thus need not receive training from the purchaser of those services.*

*3. INTEGRATION:*

Services of an Employee are usually merged into the firm's overall operation; the firm's success depends on those Employee services.

*An Independent Contractor's services are usually separate from the client's business and are not integrated or merged into it.*

*4. SERVICES RENDERED PERSONALLY:*

An Employee's services must be rendered personally; Employees do not hire their own substitutes or delegate work to them.

*A true Independent Contractor is able to assign another to do the job in his or her place and need not perform services personally.*

*5. HIRING, SUPERVISING & PAYING HELPER:*

An Employee may act as a foreman for the employer but, if so, helpers are paid with the employer's funds.

*Independent Contractors select, hire, pay and supervise any helpers used and are responsible for the results of the helpers' labor.*

*6. CONTINUING RELATIONSHIP*

An Employee often continues to work for the same employer month after month or year after year.

_An Independent Contractor is usually hired to do one job of limited or indefinite duration and has no expectation of continuing work._

*7. SET HOURS OF WORK:*

An Employee may work "on call" or during hours and days as set by the employer.

_A true Independent Contractor is the master of his or her own time and works the days and hours he or she chooses._

*8. FULL TIME REQUIRED:*

An Employee ordinarily devotes full-time service to the employer, or the employer may have a priority on the Employee's time.

*A true Independent Contractor cannot be required to devote full-time service to one firm exclusively.*

*9. LOCATION WHERE SERVICES PERFORMED:*

Employment is indicated if the employer has the right to mandate where services are performed.

_Independent Contractors ordinarily work where they choose. The workplace may be away from the client's premises._

*10. ORDER OR SEQUENCE SET:*

An Employee performs services in the order or sequence set by the employer. This shows control by the employer.

_A true Independent Contractor is concerned only with the finished product and sets his or her own order or sequence of work._

*11. ORAL OR WRITTEN REPORTS:*

An Employee may be required to submit regular oral or written reports about the work in progress.

_An Independent Contractor is usually not required to submit regular oral or written reports about the work in progress._

*12. PAYMENT BY THE HOUR, WEEK OR MONTH:*

An Employee is typically paid by the employer in regular amounts at stated intervals, such as by the hour or week.

_An Independent Contractor is normally paid by the job, either a negotiated flat rate or upon submission of a bid._

*13. PAYMENT OF BUSINESS & TRAVEL EXPENSE:*

An Employee's business and travel expenses are either paid directly or reimbursed by the employer.

_Independent Contractors normally pay all of their own business and travel expenses without reimbursement_

*14. FURNISHING TOOLS & EQUIPMENT:*

Employees are furnished all necessary tools, materials, and equipment by their employer.

_An Independent Contractor ordinarily provides all of the tools and equipment necessary to complete the job._

*15. SIGNIFICANT INVESTMENT:*

An Employee generally has little or no investment in the business. Instead, an Employee is economically dependent on the employer.

_True Independent Contractors usually have a substantial financial investment in their independent business._

*16. REALIZE PROFIT OR LOSS:*

An Employee does not ordinarily realize a profit or loss in the business.

Rather, Employees are paid for services rendered.

_An Independent Contractor can either realize a profit or suffer a loss depending on the management of expenses and revenues._

*17. WORKING FOR MORE THAN ONE FIRM AT A TIME:*

An Employee ordinarily works for one employer at a time and may be prohibited from joining a competitor *.*

*An Independent Contractor often works for more than one client or firm at the same time and is not subject to a non-competition rule.*

*18. MAKING SERVICE AVAILABLE TO THE PUBLIC:*

An Employee does not make his or her services available to the public except through the employer's company.

_*An Independent Contractor may advertise*, carry business cards, hang out a shingle, or hold a separate business license._

*19. RIGHT TO DISCHARGE WITHOUT LIABILITY:*

An Employee can be discharged at any time without liability on the employer's part.

*If the work meets the contract terms, an Independent Contractor cannot be fired without liability for breach of contract.*

*20. RIGHT TO QUIT WITHOUT LIABILITY:*

An Employee may quit work at any time without liability on the Employee's part.

_An Independent Contractor is legally responsible for job completion and, on quitting, becomes liable for breach of contract._

C-8 (0406)

Source: Texas Administrative Code, Title 40, Part 20, ' 821.5.


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## krytenTX (May 7, 2015)

I posted that information from this website:

http://texaslawhelp.org/resource/independent-contractors-vs-employees

This is just for informational purposes. I highlighted some items that question if we are truly Independent Contractors. Thoughts?


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## Old Rocker (Aug 20, 2015)

I used to own a medical staffing business where we would send out workers on short notice or short term contracts. We classified them as independent contractors since all we did was match someone's desire to work with some company's need to temporarily fill a position. There was no guarantee of work and the contractor wasn't required to accept any particular offer.

I had both an attorney and CPA give me written opinions that my people were indeed independent contractors. In ten years of operation, neither the IRS nor any labor regulatory agency questioned the assignment of my workers being independent contractors.


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## Papa (May 14, 2015)

*Uber provided a statement on that suit:*

*"Eighty seven per cent of drivers say the main reason to use Uber is because they love being their own boss. As employees, drivers would drive set shifts, earn a fixed hourly wage, and lose the ability to drive using other ridesharing apps as well as the personal flexibility they most value. The reality is that drivers use Uber on their own terms: they control their use of the app. It's why there's no typical driver-the key question in this case. And why no three people can ever represent the interests of so many different drivers."*

8*7%....REALLY, were you ever polled?

Employees would have to drive shifts??? REALLY, what would the work force be if that were the case? If 87% want the autonomy, whose is in charge???

Fixed Hourly Wage???? REALLY....in whose vehicle??? Drivers have the metal and the "Real Power"!!!

Loss of the ability to drive using other ridesharing apps...REALLY, if an employee on a shift, you can do whatever you want when not on a shift...RIGHT??? Shift work would require Uber to keep you as busy as possible. The only way the wage could be hourly is if they provide the vehicle, or pay for the cost of operation.

Drivers better wake up...the window is closing!!!!*


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## renbutler (Jul 25, 2015)

Papa said:


> 8*7%....REALLY, were you ever polled?*


You need to poll a surprisingly small fraction of a group to get an accurate number. That's why nationwide presidential polls are always within a couple percentage points after polling only about 1,000 likely voters.


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## Papa (May 14, 2015)

renbutler said:


> You need to poll a surprisingly small fraction of a group to get an accurate number. That's why nationwide presidential polls are always within a couple percentage points after polling only about 1,000 likely voters.


I guess that was the most important point in the post...


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## renbutler (Jul 25, 2015)

Pardon me for politely trying to provide useful information.

You may proceed with your fist shaking...


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## Papa (May 14, 2015)

renbutler said:


> Pardon me for politely trying to provide useful information.
> 
> You may proceed with your fist shaking...


Not trying to be a jerk. The subject matter is: Employee v Independent Contractor???

Where is the substance in how polls are conducted? Just don't see where your information is useful to the subject matter. Would love to know your position on the most important topic on this blog though?


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## Old Rocker (Aug 20, 2015)

Papa said:


> Not trying to be a jerk. The subject matter is: Employee v Independent Contractor???
> 
> Where is the substance in how polls are conducted? Just don't see where your information is useful to the subject matter. Would love to know your position on the most important topic on this blog though?


I'm missing you're point.


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## Papa (May 14, 2015)

Old Rocker said:


> I'm missing you're point.


Really


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## renbutler (Jul 25, 2015)

Papa said:


> Not trying to be a jerk. The subject matter is: Employee v Independent Contractor???
> 
> Where is the substance in how polls are conducted? Just don't see where your information is useful to the subject matter. Would love to know your position on the most important topic on this blog though?


Don't ask the question if you don't want the answer.


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## Old Rocker (Aug 20, 2015)

Papa said:


> Really


Well, a logical argument must follow certain criteria to be persuasive. You didn't state if you thought Uber drivers should be classified as independent contractors or employees.

If you want to work for an employer, you would work for a cab company. If you wanted to be an independent partner, setting your own schedule, then you are an Uber independent contractor.


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## Old Rocker (Aug 20, 2015)

Just going to add something I never noticed until today. A lot of cabs in Houston have a notice on side "Independent Contractor." So if the Texas labor board ever rules that Uber drivers are employees (which will never happen), some cab companies are going to have to pony up back expenses and stop leasing out vehicles to independent drivers.


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## BurgerTiime (Jun 22, 2015)

Vermont is going after Uber: 
http://m.wptz.com/news/vermont-lawm...ossibly-noncompliant-labor-practices/34960128


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## Old Rocker (Aug 20, 2015)

BurgerTiime said:


> Vermont is going after Uber:
> http://m.wptz.com/news/vermont-lawm...ossibly-noncompliant-labor-practices/34960128


An independent caucus is asking the state to have the labor board and next legislative session examine the issue.


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