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socrateaser, Lawyer
Category: California Employment Law
Satisfied Customers: 39043
Experience:  Retired (mostly)
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I am bidding on a small govt contract. But, they dont allow

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I am bidding on a small govt contract. But, they don't allow sub-contractors on this contract. So, is there an arrangement I could make with my regular sub-contractor and his employees to avoid violating the contract? I was thinking I could hire his employees as independent contractors and pay him a fee. Do you think that would work or is there a better idea?

An "independent contractor" is a subcontractor. Someone who provides services to another is either an independent contractor or an employee. There is no other legally distinguishable status.

So, if your contract prohibits subcontractors, then it also prohibits independent contractors. This means that everyone who works on the job must be your direct employee -- no exceptions.

This leaves you with only one option: Hire the sub and any of his employees who are required to do the job as your employees. Then, when the job is done, so is the employment.

Hope this helps.
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Customer: replied 4 years ago.

Thank you - that was the way I was leaning.

You're welcome and good luck!