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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?

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Attorney answers 4


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 .



I am not an employer. I am an independent contractor without a doubt. Can you please answer the questions?

Rogelio O. Vega

Rogelio O. Vega


I am not aware of a California statute that obligates you to have a written contract. But without a written contract you are essentially entering into an oral agreement for your services. If there is a breach of an oral agreement, there is a two year statute of limitations to file suit. A breach of a written agreement has a 4 year statute to sue. Oral agreements are harder to enforce in court, because the terms and conditions are not set out in written form and therefore more difficult to prove . Hope that answers your question.


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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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.


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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