Question

Charles is a licensed Hawaii salesperson. He's paid a commission for the sales he makes and sets his own work hours and methods. Which of these must be true?

a) Charles is an independent contractor.
b) Charles runs his own real estate firm.
c) If Charles is injured at work, he's eligible for worker's compensation payments.
d) If the real estate market slows down, Charles may be eligible for unemployment compensation.

Answer 1

Charles is likely an independent contractor given the nature of his work arrangements. Independent contractors have flexibility but typically do not receive employee benefits like worker's compensation or unemployment benefits.

Step-by-step explanation:

If Charles is a licensed Hawaii salesperson who is paid a commission for the sales he makes, sets his own work hours, and determines his own methods, then it must be true that: a) Charles is an independent contractor.

Real estate salespeople in Hawaii and many other places often work as independent contractors rather than employees. This is suggested by the freedoms that Charles has in setting his own work hours and methods. As an independent contractor, he is responsible for withholding his own taxes and is not typically provided with employee benefits. Conditions for worker's compensation and unemployment benefits differ significantly for independent contractors compared to employees.

Often, independent contractors are not eligible for worker's compensation since they are not employees of a firm. Likewise, independent contractors might also be ineligible for unemployment benefits as they are considered self-employed, and these benefits usually pertain to employees who have lost their jobs.