This morning, I spoke to Mrs. Maria Sanducci. Her husband, Rocco, is in the hosp

Question

This morning, I spoke to Mrs. Maria Sanducci. Her husband, Rocco, is in the hospital, recovering from a concussion, a fractured shoulder and a fractured wrist. Mr. Sanducci drives a cab for Red Hawk Cab Company. He was injured in an automobile accident while driving a fare two days ago. Mrs. Sanducci told me that Red Hawk refuses to pay her husband’s hospital and medical expenses, stating he is not an employee and, therefore, not eligible for workers’ compensation benefits. She brought in some paperwork for us to look at and has asked us to look into whether or not this is true.   After my meeting this morning, I briefly spoke to Rocco by phone. Here is what I have been able to piece together so far:

Mr. Sanducci leases his cab from Red Hawk for a daily flat fee of $55 per day. After paying for the daily leasing charge and the gas he uses, Mr. Sanducci can keep all the money he makes from fares and tips. Red Hawk sets the maximum fares that can be charged for certain key locations, such as the airport, convention center, and the Mega-Sports Arena.

Mr. Sanducci told me he gets most of his business from Red Hawk’s dispatcher, but he isn’t required to take those calls. In fact, he is free to accept calls from other taxicab dispatchers and take any walk-up business he finds. The cab company does not tell him which days or hours to work. However, Mr. Sanducci said that he and the other drivers end up working seven days a week, eighteen hours a day, just to pay the bills.     

There is a signed contract between Red Hawk and Sanducci. The “Vehicle Service Contract” contains the following provision:

Although I may drive a taxicab owned and/or operated by Red Hawk Cab Company (“Company”), I understand that I am not an employee of the Company. I understand I will receive no salary or other compensation from the company. My only financial obligation will be to pay rent for the cab I drive, to pay for the gasoline I use while the cab is in my possession, and to return the cab in good condition at the end of my leasing period.

Red Hawk requires all new cab drivers to attend an orientation workshop, during which they receive a “handbook.” The handbook prohibits drivers from using profanity and playing “loud or obnoxious” music while on duty. Once every two months, the cab company offers thirty-minute training sessions, where they discuss such topics as: handling difficult fares, professionalism, working with disabled customers, etc. Attendance is required.

Please analyze the reasons that our client may be an employee and the reasons he may be an independent contractor before deciding on a verdict.

Explanation / Answer

After going through the given scienerio, I have identified following reasons that your client i.e. Mr. Rocco Sanducci is an independent contractor because of the following reasons:

However, the evidences that can be used to support the facts that he is an employee of Red Hawk Cab Company are scarce and include that Red Hawk provide training to such cab drivers and that these drivers only earn a small amount after paying the company.

Therefore after analyzing the facts from both the sides I determine that Mr. Sanducci is not an employee of Red Hawk Cab Company. As this can be proved by providing his signed contract which clearly mentions this fact.

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