The service facility management considers anyone not on payroll a contractor. Because of Joe’s work a vehicle is in an accident and people are hurt. Which is TRUE?
For 6 months, Joe has worked for the service facility and has been supervised by the manager (told what to do and how to do it). Joe is paid cash at the end of each week and he is not on company payroll. Therefore, taxes are not withheld, such as social security, and he is not on the company insurance, such as the worker compensation policy. Joe does not carry any other insurance such as business insurance.
A. Joe is a legitimate employee and his mistake is covered by the service facility insurance
with no future consequence to him
B. Joe is a legitimate contractor and his insurance will cover his error
C. Joe is not an employee and considered a contractor that will be held legally liable for
damages he caused, without insurance he is personally liable
D. Joe has nothing to worry about, it isn’t his problem
A. Joe is a legitimate employee and his mistake is covered by the service facility insurance
with no future consequence to him
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