- 23 - C. Opportunity For Profit or Loss Hathaway ran the risk of incurring a loss as the result of his sales activities. As explained supra, if a sales representative incurred expenses to solicit sales and for some reason the orders placed were unshippable, then the sales representative would suffer a loss. TAG did not reimburse its sales representatives for such losses. A TAG sales representative also could suffer a loss as the result of guaranteeing the credit of a customer who failed to make payments. This factor supports a finding that Hathaway was an independent contractor, not an employee of TAG. D. Permanency of the Relationship Hathaway had been a TAG sales representative since 1969 and was hired by TAG to work for an indefinite period of time. Most of TAG's sales representatives had been with the company for over 20 years. The permanency of the relationship between TAG and TAG's sales representatives would support a finding that Hathaway was an employee of TAG. E. TAG's Right of Discharge The relationship between Hathaway and TAG was terminable at the will of either party. Some opinions regard this as an indicator of employee status. However, it is not clear in the context of the instant case that TAG would not have the samePage: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
Last modified: May 25, 2011