Which description best defines an independent contractor?

• A. An employee who works under employer supervision and direction.
• B. A full-time staff member who receives benefits.
• C. A natural person, business, or corporation that provides goods or services to another entity under terms specified in a contract or verbal agreement.
• D. A temporary worker hired through a staffing agency.

Answer: (C)

Independent contractors are defined by a contract-based, self-directed relationship to the hiring entity, rather than subordination within the employer’s organization. The description that best captures this is someone who provides goods or services to another entity under terms specified in a contract or verbal agreement. This highlights the essential elements: there is a defined agreement, and the worker generally operates with autonomy over how to complete the work, rather than being integrated into the employer’s payroll and supervision.

In sports law contexts, this distinction matters for control, benefits, taxes, and liability. The contractor typically sets their own schedule, provides their own tools, and bears financial risk for the job, while not receiving employee benefits.

The other options describe relationships that imply employment or agency: being an employee who works under supervision, a full-time staff member with benefits, and a temporary worker often hired through a staffing agency who is usually an employee of the agency rather than an independent contractor.