A delivery service hires independent contractors as drivers to deliver products that are ordered online.The company requires that the delivery service be available from 8am to 5pm Monday through Friday and display the company logo on their shirt and automobile (in the form of a magnetic sign).Procedures for logging the package and the number of attempts for delivery are defined by the company.What issues may be of concern in this situation?

Question

Quizplus · Accepted Answer

The fact that the employer is controlling the work hours, operations, and appearance of the contractors suggests that the contractors may have been misclassified as independent contractors rather than employees. This can result in legal and financial issues for the employer. The lack of provisions for overtime and vacation time may also be of concern, but these issues may be resolved if the contractors are properly classified as employees. The fact that there is an independent contractor agreement does not necessarily mean that the classification is correct.

A Delivery Service Hires Independent Contractors as Drivers to Deliver