ABA Family Legal Guide

Law and the Workplace

Introduction to Law and the Workplace

Does this chapter cover independent contractors?

No. Workplace law regulates the relationship between employers and employees. As a matter of law, independent contractors are not employees. Generally, if an employer controls, directs, and supervises you in performing your work, you are considered to be an employee. Courts also would consider you an employee if you're paid on a salary or wage basis rather than a per project basis and if the employer furnishes the equipment you use in the performance of the work.

But if the employer merely specifies the result to be achieved, and you use personal judgment and discretion in achieving that result, then you may be considered an independent contractor.

For example, ABC Company hires Jill to construct a fence around its property, and agrees to pay her $1,000. ABC does not supervise Jill's work; it does not tell her how to build the fence or what time to report to work. The company cares only about getting the fence built. Jill's income is based on the profits she makes on the job after subtracting the cost of buying the fencing materials. Her relationship with ABC ends when she finishes the job. Jill is an independent contractor, not the employee of ABC.