Weekly HR News - Employee vs. Ind. Contractor (Behavioral Control)
Employee vs. Independent Contractor
Weekly HR News – Part 2 of 4 (Behavioral Control)
As stated in the previous article, the determination as to whether a worker is considered an employee or independent contractor is based on three main groups which are:
- Behavioral Control;
- Financial Control; and
- Type of Relationship.
The first factor to be considered is behavioral control which is determined by facts that show whether or not the city has a right to direct and control how the worker does the task for which the worker is hired including the type and degree of instructions the city gives the worker. The following are examples of types of instructions about how to do work:
- When and where to do the work;
- What tools or equipment to use;
- What workers to hire or to assist with the work;
- Where to purchase supplies and services;
- What work must be performed by a specified individual; and
- What order or sequence to follow.
The amount of instruction needed varies among different jobs. Even if no instructions are given, does the city have the right to control how the work results are achieved? For example, the city may lack the knowledge to instruct some highly specialized professionals; or in other cases, the task may require little or no instruction. The key consideration is whether the business has retained the right to control the details of a worker's performance or instead has given up that right.
Lastly, behavioral control is shown in the training the city gives the worker. An employee may be trained to perform services in a particular manner, but an independent contractor ordinarily uses his/her own methods and pays for his/her training.
Next week we will look at the second factor, financial control. For more information on this or any other personnel related matters contact Andrea Shindlebower.
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