Companies throughout Georgia and the United States are increasingly turning to independent contractors to satisfy various job functions in their businesses. Independent contractors save businesses on employment taxes, limit the number of employees who may access benefits, and reduce the liability of the company. As a recent case before the Georgia Court of Appeals illustrates, companies have less exposure in negligence and personal injury lawsuits when independent contractors are involved.
In this Georgia auto accident case, P.S. was making a delivery to Wells Fargo Bank as a driver for BeavEx when his vehicle collided with E.M.’s vehicle. E.M. sued P.S. to recover compensation for injuries that he incurred. E.M. also sued BeavEx, P.S.’s employer at the time. After discovery was completed in the case, BeavEx moved for summary judgment, arguing that since P.S. was an independent contractor at the time of the accident, rather than an employee, BeavEx was not liable. The trial court agreed and dismissed the claims against BeavEx. E.M. and their uninsured motorist carrier filed an appeal.
The Georgia Court of Appeals noted that in order to determine whether P.S. was an employee or an independent contractor, it had to look at whether the contract gave, or BeavEx assumed, a right for BeavEx to control P.S.’s work, including the timing and manner of delivery. When there is a significant degree of control by the employer, an employee-employer relationship generally exists. When there is less control, the relationship is usually one of independent contractor-employer.