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It is incumbent for the Little Lamb Company to determine whether or not an employee-employer relationship exists or whether Mary should be paid as a contractor.
Independent Contractor or Employee
Under the common law test, if the employer has the right to control what work will be done and how that work will be done, then an employer-employee relationship exists and the worker is a common law employee. This is true regardless of whether the employer actually exercises the right on a regular basis. However, if an individual is subject to the control or direction of another only as to the results to be accomplished, and not as to the details by which those results are accomplished, the individual would not be an employee under the common law test...
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