Hypothetical: Dr$.$ Dredd works for a practice group that allows him to hire his own receptionist, but the group requires that all administrative employees be supervised by a practice manager. Dr$.$ Dredd hires Ms$.$ Hershey as his new receptionist. In order to avoid having to withhold taxes he insists that she sign a contract stating that she is an independent contractor. In addition to generally supervising her, Dr$.$ Dredd and his practice group set Hershey's hours, provide all the tools necessary to do her job, provided her with all the relevant training, and require that she not have any other jobs with competing practices.

When the practice manager enters Ms$.$ Hershey into the group's payroll managment software how should she be categorized?

As an independent contractor. Private agreements exclusively govern which workers are considered employees and which workers are considered independent contractors. It is not the practice manager's job to overturn that.

As an employee. Dr$.$ Dredd's contract is unenforceable and contradicts IRS guidelines. The facts demonstrate that the practice group has extensive rights to control her activities, so Hershey is an employee.

As an independent contractor. Dr$.$ Dredd's contract is legal and binding. Hershey was not coerced into the employment, and therefore there is no public policy reason to prevent her from being categorized as an employee.

As an employee. Dr$.$ Dredd has exceeded his authority and therefore the contract cannot be binding.