Let’s compare Courtney’s compensation as an employee with EWD to her compensation if she were to work for EWD as an independent contractor. Assume that Courtney works an average of 40 hours per week for 50 weeks per year to earn a salary of $100,000; in addition she receives fringe benefits including a 5 percent contribution to her retirement plan, life insurance coverage, and health insurance coverage. Would Courtney be “made whole” in terms of her hourly rate if EWD agreed to pay her $55 an hour for her contract work (10 percent more than her hourly rate as an employee)?
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