Independent Contractor

InDependent Contractor refers to a person or entity contracted to perform services for another entity under terms specified in a contract. Unlike an employee, an inDependent contractor retains control over how to complete the work, is responsible for their own taxes, and typically provides their own tools and equipment.

Examples:

• A freelance graphic designer hired to create Marketing materials for a company.
• A consultant brought in to provide strategic advice on business development.
• A construction worker who is paid per project instead of receiving a regular payCheck from an employer.

Cases:

• IRS vs. Dunbar: The court ruled that the relationship between a company and its contracted driver was one of inDependent contractor status due to the lack of control over how the driver performed their work.
• Dynamex Operations West, Inc. v. Superior Court: The California Supreme Court established a test (the ABC test) to determine if a worker is an inDependent contractor or an employee, emphasizing the level of control and independence in the work arrangement.