Regular Employee or

Independent Contractor

?

Regular Employee or

Independent Contractor

By Ahmed Yousif Alhadi (20042718) Othman Safdar (20050032)

Scenario

To construct additional facilities at Hammermill Erie Pennsylvania Plant

Dispute

Collapse of a wall, which was an extension of building No.7514’8” high

165’ in length

Wall Collapsed because of faulty construction by Rust

It was an “Act of God!”“Excessive Rains”

Because of the collapse, Hammermill had a total loss of $82,150.09This amount was paid to Hammermill by it’s insurance company.

Court of Common Pleas

Hammermill’s insurance company filed a case against Rust at the Court of Common Pleas of Erie County to recover those $82,150.09. But

the court passed judgment in favor of Rust.

“ Rust was an employee agency under the direct control of

Hammermill. ”

Was Rust a

regular employee

Or

Independent Contractor

?

Supreme Court of Pennsylvania

Hammermill took the case to the Supreme Court of Pennsylvania.

Factors to determine whether the contractor is regular employee or independent contractor:

1. Control of manner work is to be done;2. Responsibility for the work only3. Terms of agreement between the parties4. The nature of work5. Skills required for performance6. Whether one is employed in a distinct job or not7. Which party supplies the tools

Comparison

“Hammermill approvedThe construction plans.”

“Hammermill approved the plansIn sense of result not in senseOf method of construction.”

Comparison

“Hammermill had daily Inspections of the site.”

“Rust had the charge of method of construction.”

Comparison

“Hammermill was only Interested in results

and costs.”

“Rust possessed the expertiseIn the construction field.”

Comparison

“Only Rust had the requiredSkills to perform the work.”

Comparison

“Rust was the supplier of tools,Labor and materials.”

Comparison

“Rust controlled his ownworkers.”

Supreme Court’s Decision

According to Supreme Court decision:

Rust was an independent contractor

Hammermill was not responsible for the collapse

Rust was liable to pay the damages

Thank you!