Which of the following is NOT a characteristic that defines an employee versus an independent contractor?

The classification of workers as employees or independent contractors is influenced significantly by specific characteristics that indicate the nature of the working relationship.

Receiving reimbursement for out-of-pocket expenses typically signifies an employer-employee relationship. Employees are often compensated for expenses incurred due to the performance of their job, indicating a level of control and investment by the employer in the employee’s work. In contrast, independent contractors usually bear their own expenses as part of their business operations, which reinforces their status as separate entities.

The obligations and the degree of control exercised over the worker's duties play a crucial role in determining the classification. Employees typically receive regular pay intervals, may undergo training provided by the employer to perform their tasks, and must adhere to mandatory instructions set by the employer. These elements highlight the power dynamic inherent in an employee-employer relationship, where the employer directs the worker’s methods and processes.

Thus, the absence of reimbursement for out-of-pocket expenses is distinctively characteristic of independent contractors rather than employees, illustrating why this option reflects a fundamental difference in classification.