Problem: Training Paul works for a large accounting firm as a mail clerk, processing mail and delivering it to the members of the firm. He is supervised by Carl, the office manager, who directs his work. The firm has 150 employees in three offices in California. His hours are from 8:00 am to 5:00 pm each day, with a one hour lunch from 12:30 to 1:30. From time to time he is asked to stay late to process mail, particular during the busy tax seasons. Paul requested overtime, but was told that he was not entitled to overtime because he is an independent contractor. At the time he was hired, Paul signed a statement indicating that he was an independent contractor, but now he is not sure and Paul has asked you whether he is an independent contractor or employee. Paul's employer does not make any payroll deductions or withholdings from his earnings. At the end of the year, the firm provided Paul with an IRS form 1099, rather than a W-2. Paul works in a small mailroom where he is provided with a stamp to process the mail, as well as a mail cart for distributing the mail.