1. Susan Smith has a Masters degree in mechanical engineering and has worked as an engineer for XCorp., a manufacturing company in Geneva, NY, for 15 years. She works on projects assigned by her XCorp. supervisor between 9 am-5 pm, Monday Friday. She has an office in the companys plant. She uses XCorp. computers at her office, but also uses reference books and periodicals that she purchased herself. When she travels on company business, XCorp. pays for her travel, but she pays for her own hotel and food. She uses her personal cell phone for many work calls. She is paid an annual salary in bi-weekly paychecks, with taxes, social security and other employee contributions taken from her paycheck by XCorp. In the evenings and on weekends, Susan works at home on engineering projects for her brothers construction company, for which she is paid an hourly rate, but receives no benefits.

The company announces that several workers (including Susan) will be converted to independent contractor status. Susan enjoys the extra income from the absence of payroll withholdings, and she uses the cash to take a European vacation. Nine months after this change, Susan trips on carpeting in the office, falls and suffers a serious concussion. Her doctor tells her that she will be unable to work for at least six months. Susan files for workers comp and disability payments, but they are rejected because XCorp. says that she is an independent contractor. Because of her extended absence, XCorp. fires her, and she is denied unemployment benefits.

1. Is Susan and independent contractor? Why or why not?

2. Should Susan be entitled to unemployment benefits while shes out of work? Why or why not?

3. Susans prolonged recovery depletes her savings. Unable to pay her mortgage, Susan loses her house and must live in her car. Because she cannot pay her medical bills, Susans recovery is not complete, she suffers permanent cognitive deficits and loses her engineering license. If the court ultimately finds that Susan is an employee, what damages can she recover?