Case Study
15
Regular Employee or Independent Contractor ?
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Transcript of Case Study
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!
