What is the key factor in distinguishing between an independent contractor and an employee?

The degree of control is the key factor in distinguishing between an independent contractor and an employee because it primarily reflects the relationship between the worker and the employer. When an employer has a high degree of control over the details of how the work is performed, including the means and manner of achieving results, this typically indicates an employer-employee relationship. Employees usually follow specific directives and schedules set by their employer and are often integrated into the employer's business operations.

In contrast, independent contractors operate with a greater degree of autonomy, meaning they have more control over how they complete their work and are not as closely monitored by the hiring party. This distinction is crucial in legal contexts, as it affects various responsibilities, entitlements, and liabilities, including tax obligations and benefits eligibility.

While nature of the work, autonomy granted, and duration of the contract can influence the classification, they do not capture the essential dynamic of control in the same way. For instance, an independent contractor may perform similar tasks to an employee but do so independently without supervision, which solidifies their status as a contractor. The degree of control is the most reliable indicator in determining how a worker fits into classification categories in labor law.