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MP-03 Independent Contractor          SCORE Chapter 570

INDEPENDENT
    CONTRACTOR STATU
S

Used by most Insurance Companies

Initial test:

 

A.   Master-Servant Relationship....Does the general contractor have the right of direction and control over the subcontractor? In most cases, the existence of this relationship is the determining factor of employee VS contractor.

 

B.   Nature of Work Theory....Is the work performed by the subcontractor similar to, or directly related to, work normally done by the general contractor’s employees? If the subcontractor is performing a skilled craft which the general contractor’s employees are not trained to do, the subcontractor is considered to be taking the place of an employee.

 

Other test:

 

1.   Is there a written contract between the general contractor and the subcontractor?

 

2.   Does the subcontractor provide his own tools and material for the job?

 

3.   Does the subcontractor advertise in the telephone directory or elsewhere?

 

4.   Does the subcontractor use printed billheads and letterheads showing his company      name, address, phone number, and type of work performed?

 

5.   Is the subcontractor licensed in his trade?

 

6.   How is the subcontractor paid and what length of time is he working for the general Contractor?

 

Courtesy of Bucks County SCORE Chapter 570:  Phone: 215-943-8850    e-mail: score570@verizon.net    Web: http://www.score570.org

 
                 7.   Does the subcontractor hire out to other general contractors while working for you?