The fundamental issue that determines whether a person is legally treated as
an employee is the extent to which the person hiring the work may control the
details of the work. To illustrate this, consider the situation of hiring a licensed
plumber to install a new sink in a physician’s office. In this situation, the
physician determines what type of sink to install and where to put it, but the
plumber determines how to install the sink. If someone is injured because the
sink is improperly installed, the physician is not vicariously liable for the
plumber’s work.
Conversely, assume that the physician hires an unskilled worker to install the
sink. The physician tells the worker how to cut the hole for the sink, attach the
pipes, and install the garbage disposal. In this situation, the physician would
be vicariously liable for an injury caused by the unskilled worker’s negligent
installation of the sink. There will be vicarious liability when the employer
directs the details of the work or has the responsibility for directing the details
of the work.