Saturday, August 1, 2015
Music Business/Law Tips - "Employee vs. Independent Contractor"
In the entertainment business there are a lot different employment situations: part-time, full-time, consultancies, internships, working remotely, etc. One of the most common arrangements is for someone to be an independent contractor. However, there are legal ramifications to this status, and often neither party really knows exactly if the worker is considered an independent contractor or a true employee with benefits. Although there is no exact definition of an "independent contractor", the California Department of Industrial Relations provides 12 factors that a court would consider if there was ever a dispute: 1. The most significant factor to be considered is whether the person to whom service is rendered (the employer or principal) has control or the right to control the worker both as to the work done and the manner and means in which it is performed. 2. Whether the person performing services is engaged in an occupation or business distinct from that of the principal. 3. Whether or not the work is a part of the regular business of the principal or alleged employer. 4. Whether the principal or the worker supplies the instrumentalities, tools, and the place for the person doing the work. 5. The alleged employee’s investment in the equipment or materials required by his or her task or his or her employment of helpers. 6. Whether the service rendered requires a special skill. 7. The kind of occupation, with reference to whether, in the locality, the work is usually done under the direction of the principal or by a specialist without supervision. 8. The alleged employee’s opportunity for profit or loss depending on his or her managerial skill. 9. The length of time for which the services are to be performed. 10. The degree of permanence of the working relationship. 11. The method of payment, whether by time or by the job. 12. Whether or not the parties believe they are creating an employer-employee relationship may have some bearing on the question, but is not determinative since this is a question of law based on objective tests. Ben McLane Esq benmclane.com