A subcontractor provides services using his own LLC, carries general liability insurance, uses his own tools, and works for multiple general contractors. However, he works exclusively on one contractor's jobs for six months. How does this affect his classification?
Correct Answer
B) Remains an independent contractor if other factors support that classification
No single factor determines classification. The totality of circumstances matters most. Having an LLC, insurance, own tools, and working for multiple contractors generally supports independent contractor status despite temporary exclusive arrangements.
Why This Is the Correct Answer
Worker classification is determined by evaluating the totality of circumstances, not any single factor. The subcontractor demonstrates multiple indicators of independent contractor status: operating through an LLC, carrying their own insurance, using their own tools, and maintaining relationships with multiple contractors. A temporary period of exclusive work with one contractor doesn't automatically override these other strong indicators of independence, especially when the exclusivity appears to be circumstantial rather than contractually required.
Why the Other Options Are Wrong
Option A: Automatically becomes an employee due to the exclusive work arrangement
This is incorrect because no single factor, including exclusive work arrangements, automatically determines classification. The law requires examining all factors together, and the other indicators (LLC, insurance, tools, multiple contractor relationships) strongly support independent contractor status.
Option C: Must be reclassified as an employee after 90 days of exclusive work
This is wrong because there is no specific 90-day rule that triggers automatic reclassification. Worker classification is based on the totality of circumstances at any given time, not arbitrary time periods.
Option D: Classification depends solely on the length of the exclusive arrangement
This is incorrect because classification never depends solely on any single factor, including the length of exclusive arrangements. All factors must be weighed together to determine the true nature of the working relationship.
Memory Technique
Think 'TOTAL' - The Only Test All Lawyers use. Classification requires examining ALL factors together, never just one factor alone.
Reference Hint
Florida Statutes Chapter 440 (Workers' Compensation) and IRS Publication 15-A for worker classification factors
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