The courts have labeled the test that decides whether someone is an employee or an independent contractor the "economic realities" test. This "economic realities" test has 6 factors as follows:
- the permanency of the relationship between the parties
- the degree of skill required to perform the job or provide the service
- the worker's investment in equipment or materials for the task
- the worker's opportunity for profit or loss, depending on his or her skill level
- the degree to which the alleged employer has the right to control the manner in which the work is done
- whether the service rendered is an integral part of the alleged employer's business.
All of these factors are supposed to be given more or less equal weight and the totality of the circumstances considered to determine whether the worker is an employee entitled to overtime or an independent contractor, who is not.
Lexington, Kentucky overtime lawyer Robert Abell helps individuals and employees recover the overtime they've earned but not been paid; contact him at 859-254-7076.