Friday, November 13, 2009

independent contractor or employee?










are paperhangers independent contractors or employees?
this may depend on where you live.
different states have different rules.

here is an interesting article about an interesting ruling in an interesting profession in the Commonwealth of Massachusetts:

some strippers sued a club owner over whether they were independent contractors (the defendant's position) or employees (the plaintiff's position).

According to the article:

The club had argued that selling alcohol is its main business, not putting on strip shows, and that the performers were independent contractors who provided extra entertainment akin to televisions and pool tables at a sports bar.

Suffolk Superior Judge Frances A. McIntyre dismissed that argument.

“A court would need to be blind to human instinct to decide that live nude entertainment was equivalent to the wallpaper of routinely-televised matches, games, tournaments, and sports talk in such a place,’’ she wrote. “The dancing is an integral part of King Arthur’s business.’’

The judge's ruling is sound except for one little thing. Let the record show that I, Robert M. Kelly, object to the use of the term "wallpaper" in this context! May it please the court!

You may wonder why establishing whether King Arthur's is primarily in the stripping business or in the liquor business is so important. The reason is simply that if the workers are an integral part of the business, they are more likely to be considered "employees", whereas, if they are merely somewhat connected to it, they are more likely to be considered "independent contractors".

For example, a paperhanger who works for a builder 2 weeks during a year is more likely to be considered an independent contractor than a paperhanger who works for a builder 45 weeks out of the year. The latter is more likely to be considered an "employee", all other things being equal. Starting to sound familiar?

Much of the court argument involved the notorious "Massachusetts Independent Contractor Law", which has been driving small contractors batty for many years now. I will have more to say about this law and the ramifications for workers compensation insurance, liability and the like, in a few days..........

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