Employee versus Independent Contractor. Stephen Hemmerling was a ...

[theo]

Employee versus Independent Contractor. Stephen Hemmerling was a driver for the Happy Cab Co Hemmerling paid certain fixed expenses and abided by a variety of rules relating to the use of the cab, the hours that could be worked, the solicitation of fares, and so on. Rates were set by the state. Happy Cab did not withhold taxes from Hemmerling's pay. While driving a cab, Hemmerling was injured in an accident and filed a claim against Happy Cab in a Nebraska state court for workers' compensation benefits. Such benefits are not available to independent contractors. On what basis might the court hold that Hemmerling is an employee? Explain.

Question 2

A general power of attorney is usually given to a special agent.
 a. True
  b. False
  Indicate whether the statement is true or false

[ebenov]

Answer to Question 1

Employee versus independent contractor
The Supreme Court of Nebraska held that Hemmerling and Happy Cab had an employment relationship primarily on the basis of control. The contract between the parties vests the exclusive control, supervision, and possession of the taxicab in Happy Cab.    Happy Cab had the right to control the methods or means used by Hemmerling in the course of operating the taxicab by virtue of its exclusive control over the taxicab. Happy Cab exercised such control, by establishing and enforcing a variety of rules relating to the use of the cab, solicitation of fares, and so on. Other factors supporting the existence of an employment relationship included that Hemmerling was not engaged in a distinct occupation or business from that of Happy Cab    . The type of work is that which can be done by employees rather than specially skilled independent contractors. Also, the net effect of the contract is that Happy Cab supplied the instrumentality of the trade. Hemmerling's ability to control his profit was limited, because he was faced with fixed expenses    and a ceiling was placed on Hemmerling's income given that the rates were set by the state and that he could drive no more than 12 hours in any 1 day. The only factor in support of an independent contractor relationship was that Happy Cab did not withhold taxes.

Answer to Question 2

FALSE