Did I hire an employee or an independent contractor?
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I run my own Internet business from my home. I hired a friend to answer email on her computer, from her home, and paid her a flat fee of $100 for each week in which she did some work for me -- a total of $2,300. She applied for unemployment insurance recently and listed me as one of her employers. My state's labor department now wants big money from me, claiming she was my employee. How do I convince them that I don't owe anything?