Make sure you know who pays the bill when an independent contractor causes property damage during a construction project.
Many businesses hire independent contractors for a multitude of reasons. For example, using an independent con-tractor for a job rather than an employee may save an employer money, since employers do not need to provide in-dependent contractors with employer-provided benefits or pay independent contractors a salary. Working with inde-pendent contractors often provides employers greater flexibility by hiring independent contractors on a project by project basis. Employers may also benefit from using independent contractors because, in most instances, employers are not vicariously liable for the negligent actions of independent contractors. Although independent contractors are not employees, they are not completely separate from the company and the company may still be liable for any actions or omissions an independent contractor takes or fails to take while per-forming services for a company in certain circumstances. There is often a fine line between an employee and inde-pendent contractor. Just because a hired party is labeled an independent contractor, it does not necessarily mean that they are considered an independent contractor as opposed to an employee under the law. This topic will navigate through this complex area of law. It will provide a brief overview of what exactly an inde-pendent contractor is and the difference between an independent contractor and an employee, and will review the importance of having a written independent contractor agreement. This topic will also review the circumstances as to when the company or the independent contractor is liable in the event the person hired causes damage or per-forms some other negligent act. Finally, it will turn focus to presenting the best business practices to minimize risks.
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Why Lorman?
Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Agenda
Overview
- Definition of Independent Contractor
- Definition of Employee
- Discussion of Factors - Independent Contractor vs. Employee
Independent Contractor Agreements
- Purpose
- Written vs. Oral
- Important Provisions
Independent Contractor vs. Hiring Party Liability
- Party in Control
- Vicarious Liability
- Respondeat Superior
- Exceptions to the Rules
Who Pays When the Independent Contractor Causes Damage?
- Vexing Issue in Litigation
- Comes Down to Factors Considered by Courts
- Possibility That the Hiring Party, the Independent Contractor, or Owner Is Liable
Risk-Shifting to Protect Your Company
- Necessary Terms in a Written Agreement
- Proper Investigation of Chosen Contractor
- Insurance Issues
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Why Lorman?
Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Credits
OnDemand Course
This course was last revised on December 10, 2024.
Call 1-866-352-9540 for further credit information.
- AK CLE 1.0
- Alaska attorneys may receive 1.0 hours of continuing legal education for completing this program. Please contact the Alaska Bar Association or go to www.alaskabar.org for details regarding reciprocity with other states.
- AL CLE 1.0
- This course or a portion thereof has been approved by the Alabama State Mandatory Continuing Legal Education Commission for a maximum of 1.0 hours credit.
- AR CLE 1.0
- This course has been approved for 1.0 hours of CLE by the Arkansas CLE Board.
- Arizona CLE 1.0
- The Arizona State Bar does not pre-approve or pre-certify MCLE programs. However, records of this program and attendance will be maintained by Lorman Education Services for auditing purposes. This activity may qualify for up to 1.0 hours toward your annual CLE requirement for the State Bar of Arizona.
- CA MCLE 1.0
- Lorman Education Services is a State Bar of California approved MCLE sponsor and this course qualifies for 1.0 CLE hours of participatory credit.
- CT CLE 1.0
- Neither the Connecticut Judicial Branch nor the Commission on Minimum Continuing Legal Education approve or accredit CLE providers or activities. This course has been approved for CLE credit in jurisdictions aside from CT and therefore it automatically meets the content and delivery requirements in Connecticut. Credit is based on a 60 minute credit hour and shall be awarded as follows: 1.0 CLE credit(s).
- GA CLE 1.0
- This program has been approved by the Georgia Commission on Continuing Lawyer Competency for 1.0 CLE hours.
- HI CLE 1.0
- This program was approved by the Hawaii State Board of Continuing Legal Education for 1.0 CLE credit hours.
- IL CLE 1.0
- This course was approved for a total of 1.0 hours of MCLE Credit by the Illinois MCLE Board.
- IN CLE 1.1
- This program has been approved by the Indiana Commission on Continuing Legal Education. Participating attorneys are eligible to receive up to 1.1 hours of Distance Education credit.
- MO CLE 1.3
- This course qualifies for self-study CLE credit in Missouri.
- ND CLE 1.0
- North Dakota CLE policy does not allow for pre-approval of any self-study courses. This course may qualify for up to 1.0 hours of CLE credit.
- NH MCLE 1.0
- NH MCLE does not approve or accredit CLE activities for the NH Minimum CLE requirement. Lorman Education Services believes this Ondemand course meets the requirement of NH Supreme Court Rule 53 and may qualify for CLE credit(s). Program Length: 60 Minutes.
- NJ CLE 1.3
- This program has been approved by the Board on Continuing Legal Education of the Supreme Court of New Jersey for 1.3 hours of total CLE credit.
- NM CLE 1.0
- This program has been approved by the New Mexico Minimum Continuing Legal Education Board for 1.0 hours of credit.
- NV CLE 1.0
- This program has been approved by the Nevada Board of Continuing Legal Education for 1.0 CLE hours.
- NY CLE 1.0 including Areas of Professional Practice 1
- This course has been approved in accordance with the requirements of the New York Continuing Legal Education Board for up to a maximum of 1.0 credit hours in the area(s) of Areas of Professional Practice for 1.00 hour. Each hour may be counted only as satisfying one category of credit. Duplicate credit for the same hour of instruction is not permitted. This course qualifies for both established and newly admitted attorneys. Lorman Education- Noggin Guru, Inc. has a financial hardship guideline. Please contact customer service at 1.866.352.9539 for instructions on how to apply.
- PA CLE 1.0
- This Distance Learning program has been approved by the Pennsylvania Continuing Legal Education Board for 1.0 hours of substantive law, practice and procedure CLE credit.
- RI CLE 1.0
- This program has been approved by the Rhode Island Mandatory Continuing Legal Education Commission for 1.0 hours of CLE credit.
- TN CLE 1.0
- This program has been approved as a distance learning format by the Tennessee Commission on Continuing Legal Education for a maximum of 1.0 hours of credit.
- WI CLE 1.0
- This program qualifies for 1.0 hour(s) of ondemand CLE through the WI Board of Bar Examiners.
- WV MCLE 1.2
- This program has been approved by the West Virginia State Bar MCLE Commission for 1.2 MCLE hours.
To earn each credit Lorman offers through the OnDemand learning platform, you need to watch 100% of the program. Also, for certain credits you will need to fulfill additional requirements which will be displayed on the "credits" tab when viewing the course.
This program does NOT qualify, nor meet the National Standard for NASBA accreditation.
MP3 Download
This program does NOT qualify, nor meet the National Standard for NASBA accreditation.
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Why Lorman?
Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
Faculty
Mark B. Grzymala
Grzymala Law Offices, P.C.
- Principal of Grzymala Law Offices, P.C. and focuses his practice in commercial litigation and construction law
- Represents a variety of clients from the small business owner to Fortune 500 companies
- Experienced litigator representing all players on a construction project with respect to mechanics lien foreclosures, bond claim enforcement, construction defects and delays, breach of contract, and consumer fraud
- Named as a Rising Star by Super Lawyers magazine in 2016, and as a Super Lawyer in construc-tion litigation from 2017 through 2025
- Frequent speaker on construction law issues and author of several articles on contractor rights
- Member of the ABA Construction Law Forum on serves on Steering Committee for division 9 – Subcontractors and materials suppliers
- Serves as co-chair of the Illinois State Bar Association Construction Law Council
- Charter Fellow of the Construction Lawyers Society of America
- National Director of the Polish American Congress
- J.D. Degree, Chicago-Kent College of Law; B.A. Degree, University of Illinois at Urbana-Champaign
- Can be reached at 847-920-7286 or https://grzymalalaw.com
Joseph Kwiatkowski
Grzymala Law Offices, P.C.
Joseph F. Kwiatkowski
- Associate attorney at Grzymala Law Offices, P.C. and focuses his practice in commer-cial litigation and construction law
- Represents a variety of clients, range from small businesses to large companies across the State of Illinois
- Has litigated numerous cases relating to breach of contract, fraud, employment issues, mechanic’s lien foreclosures, eviction, and other business disputes
- Experienced in employment and commercial law
- Member of the ABA Construction Law Forum
- J.D. Degree, Chicago-Kent College of Law; B.A. degree in Political Science & History, University of Illinois at Urbana-Champaign
- Can be reached at 847-920-7286 or grzymalalaw.com
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Why Lorman?
Over 37 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.
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