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.75 14’8” 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 $82,150.09 This 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. <ul><li>Factors to determine whether the contractor is </li></ul><ul><li>regular employee or independent contractor: </li></ul><ul><li>Control of manner work is to be done; </li></ul><ul><li>Responsibility for the work only </li></ul><ul><li>Terms of agreement between the parties </li></ul><ul><li>The nature of work </li></ul><ul><li>Skills required for performance </li></ul><ul><li>Whether one is employed in a distinct job or not </li></ul><ul><li>Which party supplies the tools </li></ul>
Comparison “ Hammermill approved The construction plans.” “ Hammermill approved the plans In sense of result not in sense Of 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 expertise In the construction field.”
Comparison “ Only Rust had the required Skills to perform the work.”
Comparison “ Rust was the supplier of tools, Labor and materials.”
Comparison “ Rust controlled his own workers.”
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