Problem:
Ethan began working at Leroy's in 1988 as a customer service manager. In 1997 his employer started requiring him and other salespeople to sign a series of one-year agreements that stated they could be terminated on 60 days' notice. Three years later it required Ethan to incorporate, and from that point forward, the agreements were between Leroy's and Ethan's corporation. The agreements defined Ethan, and later his corporation, as an "independent marketing consultant" and expressly stated that the relationship was not one of employment, but rather of an independent contractor-principal. Ethan paid for his own office space and remitted his own income taxes and workers' compensation (WSIB) premiums. At the same time, Leroy's set prices, territory, and promotional methods and Ethan was limited to servicing Leroy's exclusively. In 2006, Leroy's terminated the agreement with 60 days' notice. Ethan sued for wrongful dismissal damages, alleging that he was an employee.