It is important to recognize the importance of employee and independent contractor distinctions because in order to apply the applicable law, a court first needs to determine whether or not the employer-employee relationship :

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In order to apply the applicable law, a court needs to determine whether the employer-employee relationship existed or not. This is the most fundamental aspect that needs to be established before determining other legal aspects such as rights and obligations, termination, compensation, and benefits.  Without establishing the existence of an employer-employee relationship, it becomes impossible to determine applicable labor and employment laws that protect employees or independent contractors.

It Is Important to Recognize the Importance of Employee and Independent