Can I hire salespeople as Independent Contractors?
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Can I hire salespeople as Independent Contractors?
I am a sole proprietor. I would like to hire independent contractors
as salespeople for travel memberships. They would work completely
independently, only bringing me the end result, which is the sale. I
would like to know if I can hire them as IC’s, and should I issue them
an IC agreement.
Asked on January 2, 2019 under Employment Labor Law, New York
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
Yes, you can, but make sure they are independent. That means that while you can set sales goals, provide leads, and provide them product training and marketing support, you do NOT set their schedule for them, tell them what potential customers to see or where to travel, don't tell them how to present (you can offer training and suggestions, but not a rigid script), etc. They must have a large degree of independence to qualify as independent contractors. You also can't bind them to only represent your products: salespeople who are independent contrators can carry multiple lines or products.
An I/C agreement will also help, by making it clear that this is an I/C relationship and that the salesperson has to provide his/her own insurance, including health and worker's comp (as applicable).
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