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Updated almost 6 years ago on . Most recent reply presented by

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Susan O.
  • Fresno, CA
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Handyman, Laborer or Independent Contractor? Forms? protection

Susan O.
  • Fresno, CA
Posted

Anyone have a link to a good independent contractor form that I can have workers - like handymen, painters, framers use?

I need some sort of protection as I hire them often daily 

I have another neighbor who is in California and does much less construction than me.  He just got hit by the State of CA, Department of Industrial Relations - "Labor commissioner's office" with a claim from their gardener who was painting their house and got 'injured'

There was no agreement or just basic agreement stating that the gardener and then painter was an independent contractor.  

Does anyone have a basic form that works in CALIFORNIA that will just say basics like the Laborer is a Independent Worker/ Contractor, paying their own insurance, and working per job and not per hour.

That XXXXX property owner is not a contractor and NOT an employer etc?

I do notice alot of the workers like to call me "Boss Lady" I wonder if they are just assuming I'm their employer and could sue me in the furutre if they're negligent, get into accident or slip and fall?  How does one protect themself?

Also I do like a lot of investors have a separate entity for property management.  Would it make sense to get some sort of error or workmans comp or some sort of insurance?  Or is there some sort of broad insurance policy for investors who often hire these handymen types.  Most investors, property owners and flippers I know just hire these handymen types and don't really have anything in writing.

How do people protect themselves.  Is there a basic form that one can use to have any day laborers, or handymen sign that separates the owner/investor from being a 'employer'

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Eamonn McElroy#5 Tax, SDIRAs & Cost Segregation Contributor
  • Accountant
  • Atlanta, GA
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Eamonn McElroy#5 Tax, SDIRAs & Cost Segregation Contributor
  • Accountant
  • Atlanta, GA
Replied

California now has a pretty onerous brightline test of sorts after the Dynamex case last year in the CA supreme court.

A hired worker will be considered to be an employee unless it can be shown the worker passes ALL of the following test:

1) The worker is free from the directions and control of the hirer in connection with the performance of the work, both under the contract for the work and in fact;

2) The worker performs work that is outside the usual course of the hiring entity's business; and

3) The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the worked performed for the hiring entity.

Note this is a lot more restrictive than the federal "questionnaire" for an employee vs IC determination.  I encourage you to have a sit down with an attorney familiar with California's employment laws.

Again, onerous.  If I was located in CA and hired seasonal help during tax "busy season", even if that person was in the trade or business of providing contract admin support to many CPA firms, the #2 test would preclude me from categorizing that worker as an IC in California and I would have to run payroll and pay employment taxes...  But if I hire a lawn guy to landscape around the office, I could call him an IC... as long as I don't instruct him on how tall to prune the hedges...

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