State:
May 15, 2010
Paying Independent Contractors’ Expenses within Your Organization

Maria Anastas discusses independent contractor expenses in a BLR webinar entitled ‘Employee versus Independent Contractor: Where’s the Line? How to Make the Proper Call and Stay Out of Court’. She explains that organizations should understand the following points regarding independent contractor expenses:

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  • Organizations should not pay independent contractor expenses
  • The organization should compensate independent contractors by providing a total amount that is encompassed in the agreement that was reached between the hiring organization and the independent contractor
  • There should be no extras provided by the hiring organization to the independent contractor. These extras include items or monies that may have been provided to the organization’s employees
  • Hence, if the hiring organization needs to, it can curtail or incorporate any such expenses into a total fee or a per project fee
  • Some exceptions may be allowable. However, an accumulation of treatments of independent contractors as if they were employees can be ground for misclassification

Maria Anastas is a partner in the San Francisco office of law firm Ogletree, Deakins, Nash, Smoak & Stewart, PC ( www.ogletreedeakins.com ). She represents employers in labor and employment law matters exclusively, with a primary emphasis on traditional labor matters. She also devotes a substantial portion of her practice to providing employers with practical advice on a wide variety of employment law issues. She can be reached at maria.anastas@ogletreedeakins.com.

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