Value Plants Inc., a large garden supply company, needs an additional worker in the billing office but has not budgeted for a full$-$time employee. The vice president of finance determines that a worker should be hired as an independent contractor to perform the same duties as the other billing clerks. The new worker will be paid hourly but will not receive benefits.

After finding someone for the position, the new worker is asked to sign a contract indicating she understands that she is an independent contractor and will not receive benefits. Because the new worker is classified as an independent contractor, the payroll office does not withhold FICA taxes or make FICA contributions. One month after the new worker starts, she contacts the Payroll Department and her supervisor because she is concerned that she is not receiving overtime for the $46$ hours she works each week. She also is concerned about not being credited for social security purposes.

She is reminded that she is classified as an independent contractor and is not eligible for overtime or benefits. Her supervisor also reminds her that she signed a contract acknowledging this. The worker makes a complaint to the Department of Labor and the Internal Revenue Service, and investigations occur.

What do you believe will be the Department of Labor and Internal Revenue Service's response to Value Plants about the classification of the new worker?

What key guidelines should organizations use to determine the classification of workers as either independent contractors or employees?

Should the right$-$to$-$control factor be considered? Explain your reasoning.