This was seen by my friend outside her work, she wants to know what kind of caterpillar it is or even if it is indeed a caterpillar?

Ew ew ew. Omg can someone please tell me what this bug is?!! ... on Twitpic (http://twitpic.com/2zixsl)

It looks a little like a monarch caterpillar, but not exactly. However, someday it will be a butterfly and a pretty one at that.

Tick

This is probably a tiger moth larva. The tiger moths (family Arctiidae) are a very colorful family of moths unlike most moths. There are many species of tiger moths. I don't know which species this moth might be. Search Arctiidae - BugGuide.Net (http://bugguide.net/index.php?q=search&keys=arctiidae&search=Search). Wooly bears are arctiids.

Monarchs are brush footed butterflies (family Nymphalidae) and don't look anything like this to me. Search Monarch Larvae - BugGuide.Net (http://bugguide.net/index.php?q=search&keys=monarch+larva&search=Search)

I found the ID! This beautiful moth is a banded tussock moth, Halysidota tessellaris, (family Arctiidae).

Halysidota tessellaris - Banded tussock moth -- Discover Life (http://www.discoverlife.org/mp/20q?search=Halysidota+tessellaris&guide=Caterpillars)

Halysidota tessellaris larva - Halysidota tessellaris - BugGuide.Net (http://bugguide.net/node/view/259953)

Banded Tussock Moth - Hodges#8203 - Halysidota tessellaris - BugGuide.Net (http://bugguide.net/node/view/111200)

Moths in the Arctiidae family are commonly called tiger moths or tussock moths.