A physician owned a private practice. He also worked part time at a heavy industry company, serving its employees’ health care needs. He worked two hours a day for six days a week at the company. He was also required to be on call at all times in case of an emergency. He received all the same benefits as regular employees, including sick leave, vacation time, etc. He was supervised by the company’s head physician. In the event of a disagreement between himself and the head physician, the latter had the final say. He was required to adhere to his schedule, even if it conflicted with an emergency in his private practice.

After he passed away, his wife applied for widow’s social security benefits based on his earnings record. The question arose as to whether he was an employee of the industrial company, or an independent contractor.

If he was an employee, then his wages from the company were countable as social security wages. If he was an independent contractor, then they were not. This decision would in turn determine whether his widow was entitled to benefits on his earnings record and, if so, the amount of such benefits.

It was held that he was an employee. Under common law principles, the critical question in determining an employer/employee relationship is the right of control. The principal, or employer, has the right to control the agent’s (employee’s) work, not only as to the result to be accomplished, but as to the manner in which it is accomplished.

There are several factors that can be looked at in making this determination, including but not limited to: 1) the degree to which the person became integrated into the operating organization of the company; 2) the substantial nature, regularity, and continuity of his work for the firm; 3) the authority of the firm to require compliance with established general policies; 4) the degree to which the person is accorded the rights and principles of the firm’s employees generally.

These factors militated in favor of finding the physician to be an employee of the industrial company. His widow was awarded benefits.

See Social Security Ruling (SSR) 61-61.

This material should not be construed as legal advice for any particular fact situation, but is intended for general informational purposes only. For advice specific to any individual situation, an experienced attorney should be contacted.