What characteristic defines an independent contractor under common law rules when distributing specified goods?

An independent contractor is typically defined by their level of control over how they perform their work, their ability to make a profit or incur a loss, and the independence in their business operations. The characteristic that best exemplifies an independent contractor in this context is the driver who distributes beverages and meat on a commission basis.

This choice indicates that the driver is compensated based on the sales they generate, suggesting a level of independence and entrepreneurial risk. Such a payment structure is typical of independent contractors, as they have the opportunity to earn more by working more efficiently or effectively, and they are responsible for their expenses. Independent contractors also often have the freedom to choose their hours and methods of work, solidifying their status as independent from a business entity.

The other scenarios usually imply a more dependent working relationship. For instance, drivers paid hourly regardless of commission likely indicate an employer-employee relationship due to the fixed nature of their compensation. Similarly, a driver working for multiple life insurance companies may suggest some independent activity but does not inherently meet the criteria of controlling their operational business aspects as effectively as in the commission-based scenario. The driver distributing milk and bakery products, while also performing a distribution task, shifts focus away from the commission aspect, which is central to independent contractor classification.