Scenario #2: The “expensive” workout Question: Our contract with an out-of-state physical trainer stipulates the company willl pay for her travel expenses in addition to a fixed fee. Would this trainer be classified as an independent contractor?
Answer: Unfortunately, the answer is “maybe.” The appropriate classification of an individual as an employee or an independent contractor is determined by assessing the entire circumstances surrounding the relationship. It is certainly possible that the company has correctly classified this worker, especially if the independent contractor agreement sufficiently justifies why the company is paying the independent contractor’s expenses. However, in the typical independent contractor relationship, the company does not pay travel expenses. So, the employer should review the independent contractor agreement and evaluate the other provisions to make sure that it has made the correct classification.