Determinants of independent contractor status: Outcomes of US court cases

    Authors

    R. A. Zimmermann;M. A. Gowan

    Comments

    Authors: contact us about adding a copy of your work at STARS@ucf.edu

    Abbreviated Journal Title

    J. Small Bus. Manag.

    Keywords

    Management

    Abstract

    Failure on the part of any small business to correctly classify individuals as employees rather than as independent contractors can prove costly in terms of both time and money for both the business and the individual incorrectly classified. In an attempt to try to make sense of the numerous criteria promulgated for classifying individuals providing services to small businesses, this study examined the outcomes in 79 United States court cases dealing with the issue of classification. Results indicated that the greater the extent to which the individual has to comply with instructions as to when, where, and how to perform the work, the more likely the individual is to be classified as an employee. Additionally, if the individual has to personally provide the services, the individual is more likely to be classified as an employee. Regardless of whether domestic or foreign, all small businesses with a physical presence in the United States must ensure the proper classification of any individual providing services to that company. A flow chart summarizing the results of this study is provided as a minimal starting point for small businesses to use to ensure proper classification.

    Journal Title

    Journal of Small Business Management

    Volume

    37

    Issue/Number

    1

    Publication Date

    1-1-1999

    Document Type

    Article

    Language

    English

    First Page

    14

    Last Page

    27

    WOS Identifier

    WOS:000078058000002

    ISSN

    0047-2778

    Share

    COinS