Law Society of Ontario (LSO) Paralegal Practice Exam

What is a key factor in determining if a worker is classified as an Employee or an Independent Contractor?

1. The worker's personal preference for work hours

2. The employers level of control over the workers activities

3. The amount of annual income generated by the worker

4. Whether the worker wears a uniform

The correct answer is: The employers level of control over the workers activities

A key factor in determining if a worker is classified as an Employee or an Independent Contractor is the employer's level of control over the worker's activities. This distinction hinges on how much authority the employer has in dictating the worker's tasks, the manner in which they are performed, and the overall work environment. In an employment relationship, the employer typically has significant control over these factors, including setting work hours, providing training, and directing the specific outputs of the work. Conversely, independent contractors usually have more freedom to determine how and when they accomplish their tasks, reflecting their status as separate business entities rather than subordinates. The other factors, such as a worker's personal preference for work hours, the amount of annual income generated, and whether or not the worker wears a uniform, do not provide a robust framework for classifying the worker’s status. While these elements may contribute to context, they do not fundamentally demonstrate the nature of the relationship in terms of control, which is paramount in this classification analysis.