Vector is a direct sales company that markets a line of high-quality kitchen cutlery through the use of sales representatives, many of whom are college students. Harris was hired as a sales representative and attended a three-day training program for which she was not paid. Vector does not provide sales representatives with prospective leads, help with scheduling customers, or supply vehicles, office space, computers, or any other equipment to assist with sales efforts. Therefore, Vector claimed that the agency relationship with sales representatives was as an independent contractor. Harris argued that she should have been classified as an employee because Vector’s control included price setting, approval for advertising, mandatory use of Vector’s prospectus and inhome sales demonstration kits, and a requirement that the sales representatives call their managers to report each day’s activities.

CASE QUESTIONS

1. Using the direction and control analysis, determine whether Harris was an employee or independent contractor.

2. If Vector had a written agreement with each sales representative that made clear that the agency relationship was an independent contractor relationship, how would that impact your analysis?