Employer-Employee Relations

In today's world it seems like there is never enough time or money to satisfy your liking. If there were extra time then most people would use it to make more money. It's a never ending cycle. When hired by an employer sometimes the line can be blurred between being an independent contractor or an employee. In the case of Mary working for the Little Lamb Company, this line has been crossed and stepped all over. Being an employee is essentially the opposite of being an independent contractor but defining the difference can be tricky.

According to the California Department of Industrial Relations (2011) "there is no set definition of the term independent contractor." (para. 4) According to legalzoom.com (2007), "there are three main differences that define what an independent contractor is." (para. 2) The term becomes defined by interpretations of the courts and enforcement agencies such as common law principle and the Fair Labor Standards Act. As an independent contractor Mary would have the right to supply her own equipment, necessary materials, control her hours of employment, and determine how she will be paid and the amount she will be paid for her services. For Mary, these terms usually fall under the umbrella of an agreed upon contract between her and the Little Lamb Company.

A key to determining an independent contractor from an employee is knowing how the person, or company, is being paid. If a person is receiving a steady paycheck in regular intervals, than he is most likely an employee. Independent contractors are usually paid by the terms of a contract or when the service is completed. Also, if the person is issued an IRS 1099 form rather than a W-2 form then this is a pretty good determinate that he is an independent contractor. But, labor laws serve as a middle man between an employee and his employer including the initial hiring process, job duties, and benefits.

Based on Mary's scenario and the general guidelines that determine an independent contractor, Mary was initially contracted with the Little Lamb Company as an independent contractor. This is based on the fact that she signed a contract for one specific job. In some cases employees sign a contract to perform ‘a' specific job over an amount of time but she was contracted for ‘one' specific job. Near the completion of this job she was then hired by as an employee and no longer an independent contractor. She falls under the title of an employee because she is required to work with company materials and follow company work schedules. Also, at this point she has a supervisor that is overseeing her work on this new project. These are good indications that she has now become an employee. She has now also become an employee-at-will which allows the Little Lamb Company to fire her at any time for any reason, downsizing fits this bill.

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