Legal Question in Business Law in Kentucky

Re: Employee Vs Independent Contractor

There is no one-size-fits-all answer to how to distinguish between an employee and a contractor. The courts use a multi-factor test, but the factors are not exclusive (meaning the judge may consider other factors that are not in the list). Some of the factors are whether you, the person hiring, supply the tools for the job, whether you dictate the details of how to complete the job, what the understanding of both parties is regarding the employment, whether paid by the hour or by the job, etc.

If the person is an employee, they are entitled to worker's compensation and unemployment insurance benefits along with other protections that might come from OSHA regs or wage laws. An employer can also be laible for the negligence of an employee whereas this is less likely for an independent contractor. This is not an exhaustive list but given to just give you an idea of the issues involved.

The best thing to do is to meet with an attorney to review your specific situation and make recommendations. It is better to spnd hundreds up front in prevention than thousands and thousands later in damages.