AGENCY RELATIONSHIPS

( Agency: A fiduciary relationship that results when one person (the principal) manifests her consent that another person (the agent) will act on her behalf and subject to her control, and the agent manifests his consent to so act.

( Fiduciary: A person who undertakes to act on behalf of and primarily for the benefit of another.

( Fiduciary Duty: A duty arising from the trust and confidence placed in a fiduciary by those on whose behalf and for whose benefit she acts.
EMPLOYER-EMPLOYEE RELATIONSHIPS

( Employee: A person

(1) who works for, and receives payment from, an employer,

(2) whose working conditions and methods are controlled by the employer, and

(3) for whose acts and omissions occurring in the scope of employment the employer is liable.

( Independent Contractor: A person

(1) who works for, and receives payment from, an employer,

(2) but whose working conditions and methods are not controlled by the employer, and

(3) for whose acts and omissions the employer is not liable.
DETERMINING EMPLOYEE STATUS

( To determine whether a worker is an employee or an independent contractor, courts consider the following:

(1) how much direction and control the employer exercises over the details of the person’s work,

(2) whether the person is engaged in an occupation or business distinct from that of the employer,

(3) whether the work the person performs is usually done under the employer’s direction or without employer supervision,

(4) who supplies tools used by the person,

(5) the duration of the person’s employment,

(6) how the person is paid for his work, and

7) the degree of skill required of the worker.

( By contrast, the IRS bases its determination whether a person is an employee using a single