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Taxi drivers for the Yellow Cab Company sign independent contractor agreements with the company from whom they lease cabs for a daily fee. With a few exceptions, drivers are free to drive any routes and to work as many hours as they choose. Drivers' payment consists of the fares taken in minus the leasing fee and other expenses. Rates for cab rides are set by the company. Drivers are required to use meters, to meet certain appearance requirements, to have their radios on and respond to a dispatcher, to avoid profanity, and to adhere to a variety of other rules of conduct. Drivers who violate rules are subject to suspension. Drivers are required to obtain oil changes and maintenance work from the cab company and to buy gas from it. The cab company provides drivers with insurance and business cards. When one of the Yellow Cab Company's drivers was murdered on the job, his estate sought to obtain workers' compensation death benefits. The cab company claimed that the estate had no entitlement to those benefits because the deceased was an independent contractor. What should the court decide? (Nelson v. Yellow Cab Co., 564 S.E.2d 110 (2d Cir. 2002))

Management Theories, Management Studies

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