...INDEPENDENT CONTRACTOR AGREEMENT This Independent Contractor Agreement (the “Agreement”) is entered into as of ___________________ (the “Effective Date”) by and between ____________________ (Independent Contractor), a INDIVIDUAL [individual/corporation/partnership/etc.] (the “Contractor”), and PORTERHOUSE FINE MEATS, a LLC [corporation/partnership/etc.] (the “Company,” and together with the Contractor, the “Parties”). RECITALS WHEREAS, the Company wishes to engage the Contractor as an independent contractor for the Company for the purpose of completing certain specified tasks on the terms and conditions set forth below; and WHEREAS, the Contractor wishes to provide the Services (as defined below) in accordance with the terms of this Agreement; and WHEREAS, each Party is duly authorized and capable of entering into this Agreement. NOW THEREFORE, in consideration of the above recitals and the mutual promises and benefits contained herein, the Parties hereby agree as follows: 1. RESPONSIBILITIES. a) Of the Contractor. The Contractor agrees to do each of the following: A. Perform the Services set forth in Exhibit A attached hereto and made a part hereof (collectively, the “Services”). B. Devote as much productive time, energy, and ability to the performance of its duties hereunder as may be necessary to provide the required Services in a timely and productive manner. C. Perform...
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...Contract of service MEANING OF EMPLOYEE TESTS Control Integration Fundamental or economic reality test Independence Intention APPLICATION OF LAW BEST PRACTICE CHART OF DIFFERENCES APPENDICES: IRD CHECKLISTS Appendix 1: Control test checklist Appendix 2: Integration test checklist AdviceLine For telephone advice and assistance, call or email the EMA AdviceLine and talk to one of our employer advisors: 09 367 0909 or 0800 800 362 AdviceLine@ema.co.nz Appendix 3: Independent test checklist Appendix 4: Intention test checklist Appendix 5: Economic reality test checklist Appendix 6: Employee Checklist 2 2 3 3 3 3 4 5 5 5 6 6 6 7 8 9 9 11 12 13 14 14 A-Z of Employing is available to EMA members only, via email, or online at www.emadvice.co.nz Contact AdviceLine to obtain your password. AdviceLine is open 8am – 8pm Monday to Friday (excluding public holidays) Contracts for Services OVERVIEW 1 2 3 A contract for service contrasts with a contract of service. An employee is a person under a contract of service and a contractor is a person who enters into a contract for service. The concern with the correct classification of a relationship is usually over whether a person has been prevented from accessing rights and protections available only to employees. The Employment Relations Act 2000 does not define a contract of service but defines the meaning of employee. The terms are interchangeable therefore the meaning of a contract of service is the meaning of employee as provided...
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...of employment law. The current issue is a prime example of this fact of life. Situation Review The company is involved in a legal dispute with a former contractor. The contractor was injured in route to a sales call in her personal vehicle and failed to attend the sales meeting. This resulted in the loss of the sale. Subsequently, the contractual relationship with the individual was terminated. The former contractor has sued the company alleging wrongful termination. Independent Contractor In Section 2 of the Restatement (Second) of Agency an independent contractor is defined as “a person who contracts with another to do something for him who is not controlled by the other nor subject to the other’s right to control with respect to his physical conduct in the performance of the undertaking.” (Cheeseman, 2007, p. 471). Labeling someone and independent contractor does not in make them one in fact. The degree of control the principal has over the agent determines the independent contractor status. In this case the salient issue is that the principal set the work hours and assignments for Beth. This indicates a high level of control and in general the courts have concluded that this is not an independent contractor. At-Will Doctrine Because the courts will probably designate Beth an employee and not a contractor the at-will doctrine must be considered in this action. The at-will doctrine gives the employer the right to terminate an employee at any time for any legal...
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...Work is no longer a domestic relationship and we also saw that master as employer have great control their servant/employees in their work performance. Control becomes an important key to determine if a person is an employee as of today or to show if there is an employment relationship. There are differences between employees and independent contractors, an independent contractor is a person who agrees to deliver a certain outcome whereas an employee, who must obey instructions from his or her employer in the discharge of his duties, so independent contractor act independently from the principal that hires him.The independent contractor can delegate others to complete the job as the principal is not concerned with how the contractor does it, so long the outcome is achieved. Using control test from the common law, we can determine that Amanda is an employee of the company as the company control her working hours. We are concerned with the nature of the control and the degree of the control – Federal Commissioner of Taxation V J Walter Thompson (Aust) Pty Ltd (1994) Case. In Walter Thompson case, the company hired artists to perform radio plays for advertisements. The High court of Australia found that the producer controlled the actors during rehearsals and performance and held that there is an employment relationship here. Thus , we can use this case to prove that Amanda is an employee of the company. We can use the multi factor test to determine whether Amanda is the...
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...TAX FILE MEMORANDUM SUBJECT: Mr. Aaron Research Independent Contractor vs. Employee Aaron, a resident of Minnesota, has been a driver for Green Delivery Services for the past six years. Aaron leases a truck from Green and his compensation is based on a percentage of the income resulting from his pickup and delivery services. Green allows its drivers to choose their own shift and does not exercise any control over how the services are carried out. In the agreement with Green, it labels its drivers as independent contractors, maintains no health or retirement plans for its drivers, and each year reports the drivers income by issuing Forms 1099-Misc rather than Forms W-2. Lastly, Green requires its drivers to maintain a commercial driver’s license and remain in good standing with the state highway law enforcement division. Issue: The issue in question is whether Aaron should be classified as an employee of Green Delivery Services or if he is an independent contractor and therefore, should be subject to self-employment tax. Section 3121(d) contains three separate and independent tests for determining who employees are. In general one can be classified as an employee if under the usual common law rules the relationship between him and the person for whom he performs services is the legal relationship of employer and employee. Generally such relationship exists when the person for whom services are performed has the right to control and direct the individual...
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...Terms and Regulations of an Independent Contractor Affordable Fun Jumps 1. Independent Contractor Relationship. The parties agree and acknowledge that the relationship of the contractor with Affordable Fun Jumps hereunder is that of an independent contractor and any and all services performed or provided by the contractor hereunder shall be performed or provided by it in such capacity. The contractor shall in no way and for no purpose hereunder be considered an agent, servant, employee, partner or co-venturer of Affordable Fun Jumps or be deemed to hold any relationship with Affordable Fun Jumps other than that of an independent contractor. Neither the contractor nor its substitute drivers, employees, helpers, or servants are to be considered employees of Affordable Fun Jumps at any time, under any circumstances or for any purpose. Affordable Fun Jumps agrees and acknowledges that it shall have no right to direct or control the details or methods by which the contractor performs its services hereunder, and that Affordable Fun Jumps shall be concerned only with the results accomplished by the services performed by the contractor and not with the means with which those results are accomplished. Contractor shall be solely responsible for the direction and control of its substitute drivers, employees, helpers, agents or servants, including selecting, hiring, firing, supervision, directing, servicing accepted routes, setting wages, hour of work, performance standards,...
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...Employee or Independent Contractor? Responsible for Knowing Content of Links Highlighted in Yellow Key Issues 1. Why is the definition of “employee” so important? 2. How does an employer distinguish between an employee and an independent contractor? 3. Which key agencies have suggested criteria for determining if a worker is an employee or an independent contractor? 4. What is the most important factor in determining a worker’s classification? 5. What are the consequences of misclassifying an employee? 6. Various federal and state agencies have established standards for determining worker status. Below are there of the more important: a. IRS common law criteria b. Darden Factors c. FLSA criteria 7. How do the standards above overlap? 8. [pic]Cases Classifications of Workers – there are two general categories of workers: independent contractor or employee. Independent Contractor: (read to Section Form SS-8) Definitions vary based on specific regulations or laws. However, in general, the “payer” has the right to control or direct only the result of the work done by an independent contractor, not the means and methods of accomplishing the result. Misclassification is common and the consequences can be significant for an organization (payer). In most cases, a worker’s status is obvious, but can be complicated. Other Worker Terms Contingent or Temporary Workers: Worker’s job with an employer...
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...develop training materials for an upcoming session on diversity. Her manager, Cynthia, was happy with her work and asks for more projects. Karen was based on salary of $10,000 per month. She has received a 1099 for her wages for last five years. Because she was contractor, she didn’t receive any benefits. After Karen’s husband passed away, she did request for benefits, which was refused because she had contract with the utility. However, she was doing work like other regular employees in human resource department. Karen has had other limited clients over the years. She had one client for an approximately 40-hour project two years ago, and she currently has another client that keeps her on a retainer basis. Your Role/Assignment: Your role is to decide if Karen is an independent contractor or an employee and discuss some of the preventative and ethical situations that are occurring in this case. Questions: 1. Do you feel that Karen is an independent contractor or an employee? What is your rationale for this decision? I think that Karen should be considered an employee of the company. She has been working for the Utility Company for five years and she has been received salary. She was started as a contractor to develop training material for upcoming session on diversity. However, she worked for more projects that were given by her manager because she liked her job. So, she was working full time, 40 hours per week. I believe that the characteristic of her job and...
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...Samples are provided for reference only. Always consult current legislation in your jurisdiction to create policies and procedures and contracts for your organization. SAMPLE AGREEMENT This Agreement is entered into as of the XX day of October, 200X, between ___________(“the Committee”) and ____________ (“the Contractor”). 1. Independent Contractor. Subject to the terms and conditions of this Agreement, the Committee hereby engages the Contractor as an independent contractor to perform the services set forth herein, and the Contractor hereby accepts such engagement. 2. Duties, Term, and Compensation. The Contractor’s duties, term of engagement, compensation and provisions for payment thereof shall be as set forth in the budget which is attached as Schedule A, which may be amended in writing from time to time, or supplemented with subsequent estimates for services to be rendered by the Contractor and agreed to by the Committee, and which collectively are hereby incorporated by reference. 3. Expenses. During the term of this Agreement, the Contractor shall bill and the Committee shall reimburse her for all reasonable and approved out-of-pocket expenses as set forth in Schedule A which are incurred in connection with the performance of the duties hereunder. 4. Written Reports. The Committee may request that project plans, progress reports and a final results report be provided by Consultant.. A final results report shall be due at the conclusion of the project...
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...Assignment 1 Leshondra Davis Scott Levasseur Leg 100 Business Law I October 15, 2014 Situation 1: Due to the nature of the situation I would advise our leadership to seek an alternative dispute resolution through mediation. Mediation is defined as the process where “the parties agree to try to reach a solution with the assistance of a neutral third party (mediator) who helps them find a mutually satisfactory resolution.” (Managers and the Legal Environment, p.68). Mediation is less hostile and more private than litigation. Eliminating the need for lawyers, judges, and court dates, mediation has proven to be less time consuming and more cost effective than litigation. Also, with the process of litigation, the company would be required to file public documents that may contain sensitive or confidential information that can be leaked through the media. Being that this is a premises liability claim, the complainant would have to prove fault on the stores behalf. “To legally be held responsible for the injuries someone suffered from slipping or tripping and falling on someone else’s property the owner/possessor of a store, restaurant, or other business (or an employee of the business): A) Must have caused the spill, worn or torn spot, or other slippery or dangerous surface or item to be underfoot; B) Must have known of the dangerous surface but did nothing about it; or C) Should have known of the dangerous surface because a “reasonable” person taking...
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...Aaron Research Paper TAX FILE MEMORANDUM SUBJECT: Mr. Aaron Research Independent Contractor vs. Employee Aaron, a resident of Minnesota, has been a driver for Green Delivery Services for the past six years. Aaron leases a truck from Green and his compensation is based on a percentage of the income resulting from his pickup and delivery services. Green allows its drivers to choose their own shift and does not exercise any control over how the services are carried out. In the agreement with Green, it labels its drivers as independent contractors, maintains no health or retirement plans for its drivers, and each year reports the drivers income by issuing Forms 1099-Misc rather than Forms W-2. Lastly, Green requires its drivers to maintain a commercial driver’s license and remain in good standing with the state highway law enforcement division. Issue: The issue in question is whether Aaron should be classified as an employee of Green Delivery Services or if he is an independent contractor and therefore, should be subject to self-employment tax. Section 3121(d) contains three separate and independent tests for determining who employees are. In general one can be classified as an employee if under the usual common law rules the relationship between him and the person for whom he performs services is the legal relationship of employer and employee. Generally such relationship exists when the person for whom services are performed has the right to control and direct the individual...
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...Employer-Employee Relations Employer-Employee Relations In the Little Lamb Scenario, individuals can see that Mary is her own boss and known as an independent contractor working of the Little Lamb Company and not one of their employees. In determining that Mary is not an employee, because Congress responded and stated that an employee is an individual who is “not classified as an independent contractor.” The National Labor Relations Act says, “The term employee shall not include any individual having a status of an independent contractor” however, it will not provide or give a definition of what constitutes independent contractors. The IRS says the following, “The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done” (IRS Independent Contractor, 2013). An independent contractor is any individual who runs his or her own business. When hired by a company the company does not have to withhold federal, Social Security (FICA), state taxes or pay the individual unemployment. In Addition, the company does not have to pay the individual workers compensation insurance because the individual is an independent contractor. People know these individuals as consultants, freelance, self-employed, or business owners. If the company considered Mary an employee, she would have had to complete a trial period of employment before deemed as an integral part...
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...originally filed in Los Angeles County Superior Court in 1999 with allegations that single-route FedEx Ground delivery drivers, Anthony Estrada, Jeffrey Morgan, Harvey Roberts among others, were incorrectly categorized as independent contractors with the company. The suit also alleged that the drivers were unfairly required to pay over a million dollars in out of pocket “operating expenses” to perform their job. Operating expenses for the drivers included all fuel, taxes, worker’s compensation insurance and regular maintenance of the delivery trucks as well as the cost of uniforms. Under the operating agreement, FedEx believed the drivers were independent contractors and not employees. The underlying issue of the case is that the FedEx drivers believed they should be properly classified as employees which would allow them to receive reimbursement for their expenses that FedEx would be required to provide. DECISION OF THE COURT After initial filing in the court, this case was turned into a class action lawsuit. After several appeals by FedEx Ground Package Delivery System Inc., this case finally ended in 2007 with the Second District Court of Appeal in California affirming the lower court’s decision that current and former drivers were not independent contractors but employee’s. The court also issued a certification order and affirmed the plaintiffs' right to recover their attorneys’ fees. To determine the fee award the court reversed and remanded the case back to a lower court...
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...Your Role/Assignment: Your role is to decide if Karen is an independent contractor or an employee and discuss some of the preventative and ethical situations that are occurring in this case. Questions: 1. Do you feel that Karen is an independent contractor or an employee? What is your rationale for this decision? I feel that Karen is an employee. The reason for this first of all is that she has been there for five years and the company has changed her title from Human resources temporary to Human Resources Consultant. Karen is also doing similar work to others she works with and that is why they changed her title. Overall, Karen has been consistently requested to work on multiple jobs for the utility and should be considered an employee after five years. 2. What factors do you feel help contribute to Karen being an employee? I think that the fact they utility changed her title from Human Resources Temporary to Human Resources Consultant is the main contributing factor to her being an employee. The other would be how the company has consistently for five years keep hiring her for project after project. 3. What factors favor her being a contractor? The fact that Karen never received a W-2 form would be one factor. The other would be that she does have a contract with the utility. Karen also contracts her services to others other than the utility which would make her a contractor. 4. What are some potential legal implications in the case...
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...Malcolm Ferguson May 16,2015 Ericka Harden Leg100 Good Grocers, Inc. On 16th of May an accident occurred, at the West Philadelphia location of Good Grocers. The produce manager contacted me stating “as I was leaving the bakery department, I noticed a woman lying on the ground of a produce department. A gentleman then approached yelling, “She slipped on a banana peel and fell. My wife is the anchorwoman for NEWSNOW, and we are going to sue you!” The woman did not look as if she was hurt, and it did not look like the lady was suffering from any pain. However, I still called the police and reported the incident due to the policy of the policy of our company. When an accident occurs, we are to report it immediately for the safety the customer. After reporting the incident, I then went back to examine the area where the accident took place. While studying the area, I noticed the banana peel the woman allegedly slipped on was yellow. The peel was laying on a ribbed rubber mat. Also, I noticed the woman was wearing five-inch heels. From the looks of the area, the accident, look as if it was forced and the man was fabricating about what happened. While searching the area, I noticed the banana that the man claimed his wife slipped was yellow, in other words the peel was fresh. From my experience in working in food service, I know that by the banana peel still being yellow it means the peel was just placed on the mat. Also, the peel was lying on top of a ribbed rubber mat which...
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