Legal Question in Employment Law in Pennsylvania

Re: contract labor/independent contractors

More than a century of case law.

There are some general factors that courts frequently apply to make the determination, like the means of supervision, compensation, et cetera, but the actual determination is complicated and factually-driven. Juries every day determine whether a given person is an employee or independent contractor.

If the question is material to your business (and not merely a hypothetical), you should talk to an attorney who can review the specific facts of your situation.

Re: contract labor/independent contractors

1. The individual must be free from control or direction over the performance of the services involved, and

2. The individual is customarily engaged in an independently established trade, occupation, profession or business.

Only if both of these conditions are met will the relationship be regarded as an “independent contractor.” Unless and until those criteria are met, the services will be “employment”.

The following items are not conclusive in determining “independent contractor” status:

*Employer designation, either verbally or in writing, that an individual is an “independent contractor”;

*Statement by an individual that they are an “independent contractor”;

*Issuance of a Federal Form 1099.

A written agreement does not prohibit an examination of the facts to determine whether the performance of the services is subject to control or direction of the employer. If the examination shows either the exercise of or the right to exercise such control or direction, then the worker would be considered an employee and not an independent contractor. It is immaterial if the services are performed on a full-time, part-time or casual basis.