Overview
Scenario
BrightWave Marketing Inc. hires Alex, a graphic designer, to assist with client advertising campaigns. The written agreement describes Alex as an “independent contractor” and states that Alex will submit monthly invoices rather than receive a salary.
At first, Alex works from home using personal equipment and occasionally performs work for other clients. Over time, however, BrightWave begins requiring Alex to:
- attend weekly staff meetings,
- work regular business hours,
- obtain approval before taking vacation,
- and use company systems and templates.
BrightWave also provides Alex with:
- a company email address,
- business cards,
- and a profile on the company website.
After two years, approximately 90% of Alex’s income comes from BrightWave alone.
Due to financial difficulties, BrightWave suddenly ends the relationship without notice. The company argues Alex was an independent contractor and therefore not entitled to termination notice or employment protections.
Alex claims the relationship functioned more like employment and seeks compensation.
- What facts support the argument that Alex was functioning as an employee or dependent contractor rather than a true independent contractor?
- What facts support BrightWave’s argument that Alex was operating as an independent contractor?
- Based on the overall relationship between the parties, which argument is stronger and why?