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In California, must a company that uses independent contractors, set forth in a contract as to how much pay the independent

Reseda, CA |

contractors are to receive? If they don't and are required to do so, what are the possible legal ramifications for that company?

Attorney Answers 4


  1. Generally, it's best to have a written contract outlining terms of services and compensation.
    Other things to consider: Is your independent contractor really independent ? Or is he actually an employee?
    Things to consider in making this determination are: control of hours, using his own tools, is a license required for the work?a
    You should consult an attorney to draft an agreement for services and to determine if there really is an independent contractor relationship .


  2. The element of compensation is one of the terms that must be agreed upon by the parties in order for there to be a contract. The contract is not required to be in writing although that is prudent. Possible legal ramifications of not putting the contract in writing are difficulties in legal actions for enforcement and meeting the burden of proof. Possible ramifications of not settling the issue of compensation is that there is no enforceable contract.

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  3. I agree with my colleagues. While there is no specific requirement to have the compensation detailed in the contract, it is best for the contract to specify the terms and conditions of services to be provided, especially compensation.


  4. If the independent contractor is to be paid on a commission basis in whole or in part, then the commissions agreement must be in writing. Otherwise, no.

    Good luck to you.

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