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Who Pays When an Independent Contractor Causes Property Damage?

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 contractor for a job rather than an employee may save an employer money, since employers do not need to provide independent contractors with employer-provided benefits or pay independent contractors a salary. Working with independent 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 performing services for a company in certain circumstances. There is often a fine line between an employee and independent 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 independent 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 performs some other negligent act. Finally, it will turn focus to presenting the best business practices to minimize risks.

Learning Objectives

  • You will be able to identify the factors considered by courts in determining whether a hired party is an independent contractor or employee.
  • You will be able to recognize the importance of written independent contractor agreements.
  • You will be able to discuss the general rules relating to liability for the negligent acts and omissions of an independent contractor.
  • You will be able to explain the differences between independent contractors and employees.

96 minutes
Course Exam
Certificate of Completion
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Why Lorman?

Over 34 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 34 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

Applications have not yet been submitted for Delaware, Idaho, Kentucky, Maine, Ohio, Oklahoma, South Carolina, and Wyoming CLE for this course. However, if you are interested in obtaining CLE for any of the listed states or have any additional credit questions please email us at [email protected] or call us at 866-352-9540.

This course was last revised on September 24, 2021.

Call 1-866-352-9540 for further credit information.

  • AK CLE 1.5
     
  • Alaska attorneys may receive 1.5 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 1.6
     
  • This course or a portion thereof has been approved by the Alabama State Mandatory Continuing Legal Education Commission for a maximum of 1.6 hours credit.
     
  • AR CLE 1.5
     
  • This course has been approved for 1.5 hours of CLE by the Arkansas CLE Board.
     
  • Arizona CLE 1.5
     
  • 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 1.5 hours toward your annual CLE requirement for the State Bar of Arizona.
     
  • CA MCLE 1.5
     
  • Lorman Business Center, LLC. is a State Bar of California approved MCLE sponsor and this course qualifies for 1.5 CLE hours of participatory credit.
     
  • CT CLE 1.5
     
  • 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: 1.5 CLE credit(s).
     
  • HI CLE 1.5
     
  • This program was approved by the Hawaii State Board of Continuing Legal Education for 1.5 CLE credit hours.
     
  • IL CLE 1.5
     
  • This course was approved for a total of 1.5 hours of MCLE Credit by the Illinois MCLE Board.
     
  • ND CLE 1.5
     
  • North Dakota CLE policy does not allow for pre-approval of any self-study courses. This course may qualify for up to 1.5 hours of CLE credit.
     
  • NH MCLE 1.6
     
  • 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: 96 Minutes.
     
  • NJ CLE 1.8
     
  • This program has been approved by the Board on Continuing Legal Education of the Supreme Court of New Jersey for 1.8 hours of total CLE credit.
     
  • PA CLE 1.5
     
  • This Distance Learning program has been approved by the Pennsylvania Continuing Legal Education Board for 1.5 hours of substantive law, practice and procedure CLE credit.
     
  • RI CLE 1.5
     
  • This program has been approved by the Rhode Island Mandatory Continuing Legal Education Commission for 1.5 hours of CLE credit.
     
  • VT CLE 1.5
     
  • This self-study program has been approved by the Mandatory Continuing Legal Education Board of Vermont for 1.5 hour(s) of CLE credit. Please note: Attorneys may only claim 6 credits per compliance period in this format. This course is considered "Non-Moderated Programming without Interactivity".
     
  • WI CLE 1.5
     
  • This program qualifies for 1.5 hour(s) of ondemand CLE through the WI Board of Bar Examiners.
     
  • WV MCLE 1.8
     
  • This program has been approved by the West Virginia State Bar MCLE Commission for 1.8 MCLE hours.
     
  • AK ENG 1.5
     
  • This Ondemand program is applicable for professional development hours through the Alaska State Board of Registration for Architects, Engineers and Land Surveyors. Professional development hours: 1.5. *Please check the rules and requirements in your state for compliance.
     
  • AL ENG
     
  • This Ondemand program is applicable for professional development hours through the Alabama Board of Licensure for Professional Engineers and Professional Land Surveyors.* *Please check the rules and requirements in your state for compliance.
     
  • AR ENG
     
  • This Ondemand program is applicable for 1.6 professional development hours.* *Please check the rules and requirements in your state for compliance.
     
  • FL ENG 1.9
     
  • This course has been approved for 1.9 PDHs by the Florida Board of Professional Engineers in the Areas of Practice.
     
  • GA ENG
     
  • This Ondemand program is applicable through the Georgia State Board of Registration for Professional Engineers.for 1.6 professional development hours.* *Please check the rules and requirements in your state for compliance.
     
  • IA ENG
     
  • This Ondemand program is applicable for professional development hours for engineers. Please refer to Chapter 3, 193C IAC.*
     
  • ID ENG 1.5
     
  • This Ondemand program is applicable for 1.5 professional development hours through the Idaho Board of Professional Engineers and Professional Land Surveyors.* *Please check the rules and requirements in your state for compliance.
     
  • IL ENG 1.5
     
  • This program is applicable for 1.5 professional development hours through the Illinois Society for Professional Engineers.* *Please check the rules and regulations in your state for compliance.
     
  • IN ENG 1.9
     
  • This Ondemand program is applicable for 1.9 professional development hours through the Indiana State Board for Professional Engineers.* *Please check the rules and requirements in your state for compliance.
     
  • KS ENG 1.0
     
  • This program is applicable for 1.0 professional development hours for engineers.* *Please check the rules and regulations in your state for compliance.
     
  • KY ENG 1.6
     
  • This Ondemand program is applicable for 1.6 professional development hours for engineers.* *Please check the rules and requirements in your state for compliance.
     
  • LA ENG
     
  • The Louisiana Professional Engineering and Land Surveying Board (LAPELS) no longer approves providers or courses. Lorman Business Center, LLC. feels that this course is worth 1.5 PDH(s). According to LAPELS' rules, It will be the responsibility of the licensee to determine if a Course/Activity offered by an unapproved sponsor/provider is an Acceptable Activity.
     
  • MD ENG 1.5
     
  • Lorman Business Center, LLC. is a board approved sponsor with the Maryland Board of Professional Engineers. This course qualifies for 1.5 professional development hours.
     
  • ME ENG 1.5
     
  • This ondemand program is applicable for a maximum of 1.5 hours toward the annual PDH requirement. Please note: The State of Maine Professional Engineers Registration Board does not pre-approve courses for professional development credit.* *Please check the rules and requirements in your state for compliance.
     
  • MN ENG 1.0
     
  • This course is applicable for a maximum of 1.0 hours toward the PDH requirement for engineers. Please note: The Minnesota State Board of Registration for Engineers has final authority on the acceptance of individual courses.
     
  • MO ENG 2.0
     
  • This ondemand course is applicable for 2.0 professional development hours for engineers.* *Please check the rules and requirements in your state for compliance.
     
  • MS ENG
     
  • This ondemand course is applicable for professional development hours through the Mississippi State Board of Registration for Professional Engineers.* *Please check the rules and requirements in your state for compliance.
     
  • MT ENG 1.5
     
  • This ondemand course is applicable for 1.5 professional development hours for engineers.* *Please check the rules and requirements in your state for compliance.
     
  • NC ENG 1.5
     
  • Lorman Business Center, Inc. is an approved sponsor of the North Carolina State Board of Examiners for Engineers and Surveyors. This course qualifies for 1.5 professional development hours for engineers.
     
  • ND ENG 1.5
     
  • Lorman Education Services is an approved provider through the North Dakota State Board of Registration for Engineers and Land Surveyors. This seminar qualifies for 1.5 of continuing professional competence for engineers.
     
  • NE ENG
     
  • This course is applicable for professional development hours for engineers if the course is continuing engineering education for you..* *Please check the rules and requirements in your state for compliance.
     
  • NH ENG 1.5
     
  • This course is applicable for 1.5 professional development hours for engineers.* *Please check the rules and requirements in your state for compliance. The New Hampshire Board of Engineers has final authority on granting approval.
     
  • NJ ENG 1.0
     
  • Lorman Business Center, LLC. is authorized as a provider to offer courses through the New Jersey Board of Professional Engineers. This course is applicable for 1.0 CPC credits for engineers. * *Please check the NJ State rules and requirements for compliance.
     
  • NM ENG 1.5
     
  • This course is applicable for 1.5 professional development hours for engineers.* *Please check the rules and requirements in your state for compliance.
     
  • NV ENG 1.5
     
  • This course is applicable for 1.5 professional development hours through the Nevada State Board of Engineering and Land Surveyors.* *Please check the rules and requirements in your state for compliance.
     
  • OH ENG
     
  • This ondemand course is applicable for continuing education credit for engineers through the Ohio State Board of Licensure for Professional Engineers provided it is a relevant managerial, ethical or technical topic relevant to the practice of engineering or surveying.* *Please check the rules and requirements in your state for compliance
     
  • OK ENG
     
  • This course is applicable for professional development hours for engineers.* *Please check the rules and requirements in your state for compliance.
     
  • OR ENG
     
  • This course is applicable toward engineering continuing education hours in Oregon, please refer to your rules and laws.
     
  • PA ENG 1.9
     
  • This program is applicable for 1.9 PDHs for engineers through the Pennsylvania State Board of Professional Engineers, Land Surveyors and Geologists.* *Please check the rules and requirements in your state for compliance.
     
  • SC ENG 1.5
     
  • This course is applicable for 1.5 hours toward the PDH requirement for engineers through the South Carolina Board of Registration for Professional Engineers.* *Please check the rules and requirements in your state for compliance.
     
  • SD ENG
     
  • This course is applicable for professional development hours for engineers in South Dakota.* *Please check the rules and requirements in your state for compliance.
     
  • TN ENG
     
  • This course is applicable for professional development hours for engineers.* *Please check the rules and requirements in your state for compliance.
     
  • TX ENG
     
  • This Ondemand course is applicable for professional development hours for engineers.* *Please check the rules and requirements in your state for compliance.
     
  • UT ENG
     
  • This course is applicable for professional development hours for engineers.* *Please check the rules and requirements in your state for compliance.
     
  • VA ENG 1.5
     
  • This program is applicable for 1.5 hours of continuing education through the Board for Architects, Professional Engineers, Land Surveyors, Certified Interior Designers and Landscape Architects (APELSCIDLA BOARD).* *Please check the rules and requirements in your state for compliance.
     
  • VT ENG
     
  • This course is applicable for professional development hours for engineers.* *Please check the rules and requirements in your state for compliance.
     
  • WI ENG 1.5
     
  • This course is applicable for a maximum of 1.5 hours toward the PDH requirement for engineers.* *The Wisconsin Engineer Section has final authority on the acceptance of individual courses and providers.
     
  • WV ENG 1.5
     
  • This course is applicable for 1.5 professional development hours for engineers.* *Please check the rules and requirements in your state for compliance.
     
  • WY ENG 1.9
     
  • This course is applicable for 1.9 professional development hours for Wyoming engineers.* *Please check the rules and requirements in your state for compliance.
     

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

  • Arizona CLE 1.5
     
  • CA MCLE 1.5
     
  • CT CLE 1.5
     
  • HI CLE 1.5
     
  • ME CLE 1.5
     
  • NJ CLE 1.8
     
  • NV CLE 1.5
     
  • VT CLE 1.5
     
  • WV MCLE 1.8
     
The CLE Code is ONLY a requirement when applying for CLE Credit in California (for participatory credit), Kansas, New Jersey or New York. Other states do not need to supply the CLE Code to apply for CLE credit.

This program does NOT qualify, nor meet the National Standard for NASBA accreditation.

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More Program Information

Why Lorman?

Over 34 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

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 construction litigation for 2017, 2018, 2019 and 2020
  • Frequent speaker on construction law issues and author of several articles on contractor rights
  • Member of the ABA Construction Law Forum and Charter Fellow of the Construction Lawyers Society of America
  • 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 grzymalalaw.com
Joseph Kwaitkowski

Joseph Kwaitkowski

Grzymala Law Offices, P.C.

Joseph F. Kwiatkowski

  • Associate attorney at Grzymala Law Offices, P.C. and focuses his practice on commercial 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, mechanics 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 and history, University of Illinois at Urbana-Champaign
  • Can be contacted at 847-920-7286 or grzymalalaw.com
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More Program Information

Why Lorman?

Over 34 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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Product ID: 407342
Published 2021
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