The differences in status of an “employee” and a “contractor” have administrative and legal significance applicable when determining the appropriate approach to acquire and manage personnel.

1.     The determination as to whether an individual is an “employee” or a “contractor” is determined in part on the amount of control that MSUE exercises over the individual.  A “contractor” exercises considerable discretion as to when and how work is accomplished.

2.     MSUE maintains an Employer/Contractor Checklist to aid in determining whether an individual is an employee or a contractor.  If application of the checklist indicates that MSUE retains substantial control, the individual is likely an employee; substantial independence would indicate that the individual is a contractor.

3.     The difference in the “employee” and “contractor” designations has implications bearing on taxes, social security, workers’ compensation, unemployment compensation, and general liability.

4.     If there is a question as to the proper designation in a given case, the MSUE employee having responsibility should consult with the MSUE Human Resources office.

5.     An MSUE county office may not enter into an employment or contractor arrangement in its own name.  MSU, the county, or another legal entity, must accept organizational responsibility for all such arrangements.