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

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. 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

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

Halysidota tessellaris - Banded tussock moth -- Discover Life

Halysidota tessellaris larva - Halysidota tessellaris - BugGuide.Net

Banded Tussock Moth - Hodges#8203 - Halysidota tessellaris - BugGuide.Net

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