© 2005 Kennedy Information, Inc., a BNA Company.

Courtesy of ExecutiveAgent.com

The checklist is only a guideline; it does not guarantee that a person is correctly classified. There is no one single homogenous definition of the term "employee." Most agencies and courts typically look to the totality of the circumstances and balance the factors to determine whether a worker is an employee.

Common Law Factors	Yes	No	Characteristics that Lead to Employee Classification	Characteristics that Lead to Independent Contractor Classification
BEHAVIORAL CONTROL
1. Will you be trained by the employer?	_	_	Trained by employer	Responsible for own training
2. Are you instructed about when, where and how work is to be done?	_	_	Complies with department’s work instructions	Determines when, where and how work is performed
3. Will you have control over hiring and supervising assistants?	_	_	Cannot hire assistants to perform their work	May hire assistants to perform their work and pay out of contract proceeds
4. Will you perform the services personally?	_	_	Render services personally	May use own employees or subcontractors
5. Will the worker be required to provide regular progress reports?	_	_	Regular progress reports may be required	Progress reports required only if part of contract agreement
6. Will you perform the services in a prescribed sequence?	_	_	Must follow prescribed sequence	Sets own pattern or sequence
7. Will you devote a set amount of time to performing services for the organization?	_	_	Only works for organization	Free to work for other employers
8. Will the organization supply you with any tools or materials?	_	_	Tools and materials supplied by organization	Provides own tools and materials
9. Do you have set hours?	_	_	Hours specified by organization	Sets own hours
10. Will you perform services on-site at the organization?	_	_	Provides services at the organization’s location	May choose where to perform work
FINANCIAL CONTROL
11. Could you realize a profit or loss as a result of the work to be performed?	_	_	Cannot realize profit or loss	Can realize a profit or loss
12. Do you have a significant investment in tools or other types of instruments?	_	_	No investment in work facilities	Significant investment in work facilities
13. Do you make your services available to the general public?	_	_	Services are not offered to the general public	Advertises services to the general public (e.g., business cards, phone book listing, etc.)
14. Do you perform your services for more than one business?	_	_	Works for only one business at a time	May work for several businesses at the same time
15. Are you paid by the hour, week, month or assignment?	_	_	Paid on a consistent and regular basis	Paid based on work assigned in accordance with contract
16. Will you be reimbursed by the organization for business expenses?	_	_	Reimbursed for business expenses	Pays own business expenses
RELATIONSHIP OF THE BUSINESS AND WORKER
17. Will your services be integrated into the organization’s core business or other activities?	_	_	Services are fully integrated into business	Services are not fully integrated into business
18. Is there a written contract that sets forth the terms and conditions of the services?	_	_	No contract	Contract exists
19. Do you earn employee benefits from the organization (e.g., vacation/sick days, health/ life/disability insurance, pension plan eligibility)?	_	_	Earns organization’s employee benefits	Does not earn organization’s employee benefits
20. Are you incorporated?	_	_	Not incorporated	Incorporated (potentially)
21. Do you have a continuing relationship with the organization?	_	_	Ongoing relationship	Temporary relationship
22. Can you be terminated at the organization’s discretion?	_	_	Generally employed at will, may be terminated at organization’s discretion	Generally terminated only for material breach of contract
23. Can the worker end his or her relationship with the organization at any time?	_	_	May quit job without obligation	Cannot quit until job is completed