Home Improvement Contractor - Licensed Contractors
When is a contractor an illegal employee?
I'd like to hire a salesman for my business. I want to pay him on commission as we are a start up and don't have the cash. Can I hire him/her as a contractor? At what point does tihs person have to be considered an employee with rights to benefits/salary requirements and other employee legislation in California? Thank you.
Public Comments
- The salesperson would be an employee if you control his/her duties, you supply tools of trade (i.e. car, computer, phones to make customer contact, etc.), work schedule, etc. California is a very employee friendly state, so you may want to contact an attorney to be sure how to handle the situation. More likely than not, if you control the things above or even a portion of things mentioned above, he will be considered an employee and you will get slapped with non-payment of WC insurance, back employment taxes, etc. Hire an attorney, it WILL be cheaper in the end.
- if you control the time and place where a contractor fulfills his duties.
- Control is the main issue. Generally, if you control what, how, and/or where the person does the job, he or she is an employee. An independent contractor is going to be someone who offers to fulfill a need of yours. Beyond what your need is, the contractor would make the decisions. Also, a contractor typically does not offer these services exclusively to one person. I would consider looking for a way to find an independent contractor who can provide that service for you. I hope you find something that suits your needs.
