Employee vs. Independent Contractor Compliance Checker

Employee vs. Independent Contractor Assessment

This tool helps assess the relationship based on common classification factors. It is NOT a legal determination.

Behavioral Control Factors

Who controls or directs how the worker performs the tasks?

Instructions: Who gives instructions about when, where, and how to work?

Employer gives instructions (leans Employee)

Worker controls how they work (leans Independent Contractor)

Training: Is the worker trained by the employer to perform the job?

Training is provided (leans Employee)

Worker uses their own methods/training (leans Independent Contractor)

Integration: Are the worker's services integrated into the business operations?

Services are key to regular business (leans Employee)

Services are distinct project-based (leans Independent Contractor)

Services Rendered Personally: Must the services be rendered personally by the worker?

Yes, services must be personal (leans Employee)

No, worker can hire others (leans Independent Contractor)

Hiring/Supervising Assistants: Does the employer hire, supervise, or pay assistants?

Employer controls assistants (leans Employee)

Worker hires/manages own assistants (leans Independent Contractor)

Continuing Relationship: Is there a continuing relationship between the worker and the employer?

Yes, ongoing relationship (leans Employee)

No, based on projects/term (leans Independent Contractor)

Set Hours of Work: Does the employer set the worker's hours?

Employer sets hours (leans Employee)

Worker sets own hours (leans Independent Contractor)

Full-Time Required: Does the employer require the worker to work full-time?

Yes, full-time required (leans Employee)

No, worker can work for others (leans Independent Contractor)

Doing Work on Employer's Premises: Is the work done on the employer's premises?

Work done on employer premises (leans Employee)

Worker works offsite or sets location (leans Independent Contractor)

Order or Sequence Set: Does the employer set the order or sequence of the work?

Employer sets sequence (leans Employee)

Worker sets sequence (leans Independent Contractor)

Financial Control Factors

Who controls the business aspects of the worker's job?

Payment: How is the worker paid?

By hour, week, or month (leans Employee)

By the job or project (leans Independent Contractor)

Expenses: Are the worker's business expenses reimbursed?

Expenses are reimbursed (leans Employee)

Worker handles own expenses (leans Independent Contractor)

Furnishing Tools and Materials: Who furnishes the significant tools, materials, and supplies?

Employer furnishes tools (leans Employee)

Worker furnishes own tools (leans Independent Contractor)

Significant Investment: Has the worker made a significant investment in facilities or tools used in performing services?

No significant investment by worker (leans Employee)

Worker has significant investment (leans Independent Contractor)

Realization of Profit or Loss: Can the worker realize a profit or incur a loss?

No opportunity for profit/loss beyond wage (leans Employee)

Worker can profit or lose (leans Independent Contractor)

Working for More Than One Firm at a Time: Can the worker work for more than one firm at a time?

Generally limited to one firm (leans Employee)

Yes, can work for multiple firms (leans Independent Contractor)

Making Services Available to the General Public: Does the worker make their services available to the general public?

No, services are only for employer (leans Employee)

Yes, markets services publicly (leans Independent Contractor)

Type of Relationship Factors

How do the parties view their relationship?

Intent (Written Contract): Does a written contract define the relationship? What does it say?

Contract states "Employee" (Points towards Employee)

Contract states "Independent Contractor" (Points towards Independent Contractor)

No written contract

Note: A contract is important, but the actual working relationship carries more weight than what a contract says.

Employee Benefits: Does the employer provide employee-type benefits?

Yes, benefits provided (leans Employee)

No, benefits not provided (leans Independent Contractor)

Discharge/Termination: Can the employer discharge the worker? Can the worker quit anytime?

Employer has the right to discharge (leans Employee)

Worker can only be fired if contract violated; Worker can quit without penalty (leans Independent Contractor)

Permanence of Relationship: Is the relationship permanent?

Yes, relationship is permanent/indefinite (leans Employee)

No, relationship is project-based or temporary (leans Independent Contractor)

Services as Key Aspect of the Business: Are the services performed by the worker a key aspect of the employer's regular business activity?

Yes, services are fully integrated and essential (leans Employee)

No, services are specialized/ancillary or provided independently (leans Independent Contractor)

Assessment Result

Answer the questions in the tabs above and click Assess.