Can a company ask an independent contractor to pay a deposit of 1500 to ensure they receive payment if the independent contractor quits working with them.

The company states that they will return the
deposit when the contractor pays them what
they are owed, but they retain the deposit for
the entire course of the company independent
contractor relationship. They also request that
the independent contractor sign a noncompete
Arizona. Is this legal?

Asked on March 11, 2017 under Employment Labor Law, Arizona

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

A company can set up the terms of work much as it sees fit (absent some form of legally actionable discrimination). This includes requiring any deposits that it deems necessary and/or mandating that workers sign non-compete agreements.

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

A company can set up the terms of work much as it sees fit (absent some form of legally actionable discrimination). This includes requiring any deposits that it deems necessary and/or mandating that workers sign non-compete agreements.


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