Another difference between an employee and an independent contractor is the amount of control they have over their workday. It`s best to know, at the beginning of a relationship, whether someone working for you is a salesperson (an independent contractor) or an employee. Springfield provided essential evidence that a significant portion of the used automotive industry treated its sellers as independent contractors, thus providing a reasonable basis for the treatment of its sellers. The government has provided evidence of the practices of another part of the industry, but nothing that can contradict Springfield`s evidence on the practices of independent used car dealers. Therefore, under section 530, Springfield is entitled to treatment as a shelter and its sellers should be considered non-employees. Springfield is therefore entitled to a judgment on its claim and to the government`s counterclaim. On the other hand, if your goal is to move the product, you may only want an entrepreneur who knows how to sell and you don`t need to spend a lot of time in training. 4. We commend the government`s appeal lawyer for his openness to the court. We note that Springfield presented a wealth of evidence in court to prove that the practice of independent used car dealers in San Diego was, at all times, relevant to treat their employees as independent contractors, and the government has not refuted this evidence. Springfield itself testified that the person from whom it bought Douglas Motors treated the sellers as independent contractors and that it continued this practice after the purchase of the company. Springfield said it had the opportunity to talk to 50 to 100 independent used car dealers who were retailing, and all of those merchants were treating their salespeople like independent contractors. Springfield also testified that it hired an independent contractor from 1978 to 1988 with a certain Hoffman who owned a used car store.
One of the witnesses from Springfield, who has been a car salesman for forty years, testified that he was aware of other independent dealers whose salespeople were independent contractors. Another witness testified that before working for Springfield, he worked in another location where they had independent salespeople. He also said that “if there wasn`t a new car franchise, all the other guys I knew, who were doing what I was doing, were independent contractors.” A third witness testified that after working at Douglas Motors, he went to Valley Auto Sales, where he worked as an independent contractor. He testified that he had worked as an independent subcontractor in four different locations. Asked if he was aware of other independent used car dealers that had sellers who were independent contractors, he said the use of independent contractors was “widespread”. The government did nothing but find that another segment of the used car industry, the franchised dealerships, treated its salespeople like employees. For example, one of the government witnesses stated that prior to the opening of his own car dealership, he worked for franchised dealers and was treated as an employee and not as an independent contractor. Although he also stated that when he opened his own used car dealership in 1988, he treated his salespeople as an employee, he did not testify to the practice in the free used car industry. Similarly, another government witness simply stated that he believed that a car salesman should be treated like an employee. The decision whether or not to work with independent contractors or collaborators is one of the various reflections. Determining the correct status of a worker, employee or independent contractor is an important requirement that trading companies must ensure that they do it correctly to avoid taxes and the consequences that flow from them. .