What is the basic test for determining whether a worker is classified as an independent contractor or an employee?

The basic test for determining whether a worker is classified as an independent contractor or an employee primarily hinges on the concept of control. When the principal has the right to control not just the outcome of the work but also the manner and means by which it is performed, this suggests an employer-employee relationship. This control can manifest in various ways, such as dictating work hours, providing specific instructions on how tasks should be carried out, and overseeing the work process closely.

In contrast, if a worker operates independently, setting their own schedule and rates, it indicates more of an independent contractor status. The existence of a one-time project without ongoing obligations might also lean towards contractor classification, as opposed to the regular, recurring work typical of employer-employee relationships. Additionally, while a worker providing their own tools and equipment could suggest independence, it is not a definitive test for classification. Overall, the control exhibited by the principal remains the most crucial factor in distinguishing between these two classifications.