The use of labor or services of an independent contractor are subject to the restrictions in section 274A(a)(4) of the Act and § 274a. Secure for persons in this state, including persons with disabilities, freedom from discrimination in certain employment transactions.Courts and agencies use several different tests to determine whether or not a particular worker is an employee or an independent contractor. Independent contractors are not employees. • Normally, an oral or written contract governs the independent contractor relationship. Title VII generally does not apply to individuals who are found to be independent contractors. Misclassification of employees as independent contractors is actually a pretty common occurrence in the workplace. This article compares independent contractor status to employee status in Texas. An Employee does not ordinarily realize a profit or loss in the business. Rather, Employees are paid for services rendered.