User:MikelBadi/sandbox

IRAC exercise:

Scenario: The company has decided to outsource the development of the software to an independent contractor that has no relation with the company at all. The software is the most important feature of the business so the company decided to file a confidential agreement with the contractor to not disclose any information related to it. As company has several specifications on how should the software work and look, they monitors the software developer work very closely. The contract states that the worker will be paid a fixed amount when finalising the project, as they believe that the contractor would slack if he was paid hourly. Besides, the contract states that the software developer will be in charge of maintenance for the software as needed and have also signed an advance invention agreement clause.

Issue: Is the software developer an independent contractor?

Rule: Generally, a company has less or at least should have less control over an independent contractor. There is less right of control over the quality of their work and it's usually a job/project based contract. Besides, in most cases, companies don't get to own independent contractor's ideas.

Analysis: Here, the company has all the rights over the software developer. It is true that he is paid on a project basis, but the company gets to own his ideas and monitors him closely to obtain the desired product. What is more, the independent contractor is in charge of maintenance and will get paid accordingly.

Conclusion: Therefore, we can say that the software developer is really an employee for the company. All the information disclosed appears to point towards that direction.

Neutral Voice Summary:

A common issue related to business Law in the United states is the differentiation between Independent Contractors and employees. People that are hired with the objective of working on a project basis are often considered as independent contractors. However, there are many aspects that a company has to take into account when classifying someones contract nature.

The main differences that a company have to analyse are the following:


 * Determine the degree of control that the company has in the relationship with that person
 * Right of control over the work and quality
 * Nature of the job, job/project based or position within the company?
 * How they are paid? Employees pay period must remain the same unless formally changed, contractors get paid after the company receives an invoice  (clarified in the terms of the contract)
 * Does the company withhold Social Security, Medicare and Income tax?

Sources:


 * "What’S The Difference Between An Independent Contractor And An Employee?". Office Of Child Support Enforcement | ACF, 2020, https://www.acf.hhs.gov/css/resource/the-difference-between-an-independent-contractor-and-an-employee.
 * "Contractor Or Employee - Findlaw". Findlaw, 2020, https://employment.findlaw.com/hiring-process/contractor-or-employee.html.
 * "Understanding Employee Vs. Contractor Designation | Internal Revenue Service". Irs.Gov, 2020, https://www.irs.gov/newsroom/understanding-employee-vs-contractor-designation.

EXTRA CREDIT ACTIVITY: DIFFERENCES BETWEEN EMPLOYEES AND INDEPENDENT CONTRACTORS IN MY NATIVE LANGUAGE (EUSKERA) - Langile eta burujabe hitzarmena duten arteko desberdintasunak

Enpresa baten buru zarenean, gauza ezberdin asko eduki behar dira kontuan arazo legaletan arrapatua ez bukatzeko. MSEL eko kustro honetan hitz egin dugun temari interesgarri bat dira kontratuak: nola jakin zure langilea, benetan langile bat den edo independentzia duen kontratatutako pertsona bat den? Diferentzia jakiteko 5 puntu ezberdin eduki beharko genituzke kontuan:


 * Zenbateko kontrola du empresak pertsona hortan? Kontrol maila handia bada, pertsona hori langilea kontsideratuko litzateke
 * Lanaren kualitatea kontrolatzen bada ere, hau langile bat kontsideratuko litzateke
 * Lanaren natura, lan edo proiektu batetarako bakarrik al dago kontratatua pertsona?
 * Nola hari da empresa pertsona hauek ordaintzen? Langileen kasuan, ordainketak beti periodo berdinenan egin behar dira, formalki aldatzen ez bada noski.
 * Nor ordaintzen ditu zergak eta gizarte segurantza? Empresak ordaintzen baditu, pertson hura langilea kontsideratuko litzateke gobernuko arauketen begietan.

Aipamenak:


 * "What’S The Difference Between An Independent Contractor And An Employee?". Office Of Child Support Enforcement | ACF, 2020, https://www.acf.hhs.gov/css/resource/the-difference-between-an-independent-contractor-and-an-employee.
 * "Contractor Or Employee - Findlaw". Findlaw, 2020, https://employment.findlaw.com/hiring-process/contractor-or-employee.html.
 * "Understanding Employee Vs. Contractor Designation | Internal Revenue Service". Irs.Gov, 2020, https://www.irs.gov/newsroom/understanding-employee-vs-contractor-designation.