Nebraska Jury Instruction - 10.10.3 Employee vs. Self-Employed Independent Contractor
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FAQ
Under Nebraska Workers' Compensation Law, there are 10 factors which are considered in determining whether a person is an employee or an independent contractor: (1) the extent of control which, by the agreement, the employer may exercise over the details of the work; (2) whether the one employed is engaged in a ...
Workers who perform most of their work using company-provided equipment, tools, and materials are more likely to be considered employees. Work largely done using independently obtained supplies or tools supports an independent contractor finding.
If a worker is employed by a company directly, they are an independent contractor. If the worker is hired to perform a specific task for a general contractor, they are a subcontractor.
For the employee, the company withholds income tax, Social Security, and Medicare from wages paid. For the independent contractor, the company does not withhold taxes. Employment and labor laws also do not apply to independent contractors.
The Nebraska Contractor Registration Act requires contractors and subcontractors doing business in Nebraska to register with the Nebraska Department of Labor. While the registration is a requirement, it does not ensure quality of work or protect against fraud.
The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. If you are an independent contractor, then you are self-employed.