California Real Estate Practice Exam

What is the most distinguishing factor that differentiates an independent contractor from an employee?

1. The number of hours worked per week

2. The requirement to wear a uniform

3. The emphasis on results rather than method

4. The method of transportation used

The correct answer is: The emphasis on results rather than method

The most distinguishing factor that differentiates an independent contractor from an employee is the emphasis on results rather than method. Independent contractors typically have the freedom to determine how they accomplish their work as long as they meet the agreed-upon results or deliverables. They are not directly managed or controlled by the hiring party in the same way that employees are, which leads to differences in job structure, autonomy, and obligations. For independent contractors, the focus is on the end product or outcome, allowing them to utilize their discretion in deciding how to achieve that result. This can include choosing their own work hours, methods, and processes. Employees, on the other hand, are subject to more control from their employer regarding how tasks should be performed, including directives on workflows and procedures. The other options presented do not capture this essential aspect of the distinction. The number of hours worked can vary among both employees and contractors, and the requirement to wear a uniform is irrelevant to the definition of employment versus contracting status. Similarly, the method of transportation used does not determine the classification of employment and independent contracting; both employees and contractors can use various means of transportation as needed for their work. Thus, the emphasis on results rather than method is the key differentiator in this context.