Legal analysis Law Essay Research Coursework Paper

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Issue
The primary issue in the Case of Crawford Creative Consulting, LLC, is the legality of the employment status of the four selected applicants, Mariana, Ned, Omar, and Peaches. In the case study, Dr. Crawford classified them as independent contractors to avoid paying employment taxes and benefits. However, are they independent contractors or misclassified employees?
Rule
According to the Fair Labor Standards Act of 1938 section 203, an employee is an individual that is employed by an employer. Although the classification of an employee is broad under the common laws, the Internal Revenue Service (IRS), however, added less freedom of action for an employee description. It means that if the employer controls the majority of what and how a job will be done, the individual employed to do the work is considered an employee (IRS, 2020). Additionally, the IRS contrasted independent contractors as having an independent trade or more freedom in controlling what and how the job will be done (IRS, 2020). The employer has only the right to direct the result but not the majority of the services performed by an individual. The IRS classified three general categories regarding the degree of control and independence of employees to be classified as employees or independent contractors, including behavioral, financial, and type of relationship (IRS, 2020). In the behavioral category, it considers the degree to which the employer controls what an individual does or how the individual does the job. In the financial category, it considers the employer's control of other aspects, such as the salary, the tools, and the supplie...