California Business & Contract Law: Creating the Independent Contractor Relationship
The most determinative factor in creating an independent contractor relationship is “control.” There is a certain threshold of control that must not be exceeded. Otherwise, an employer-employee relationship is created, regardless of the type of contract that is actually signed. I have been approached by many businesses asking me to create an independent contractor agreement, but the work terms that they provide create an employment relationship. Many businesses prefer independent contractors versus employees so that there are less legal and tax obligations. It is important to consult with an attorney who can create an independent contractor agreement that is just enough limited in control, but still accomplishes your objectives. It is also important that these agreements are tailored to your particular business. For instance, if you’re looking to hire salespeople as independent contractors, there will be different expectations of the salespeople depending on the nature of the business. Consult with an attorney who will assist you with creating an enforceable contract that outlines these expectations without crossing the threshold of control. LegalAxxis provides this service and other contract drafting and reviewing services for an affordable fee. Please contact the firm for a free consultation.