How can I structure gas/travel reimbursement for independent contractors in such a way that it won’t hurt their independent contractor status?

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How can I structure gas/travel reimbursement for independent contractors in such a way that it won’t hurt their independent contractor status?

I have heard that if the independent contractor

Asked on February 28, 2017 under Employment Labor Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Have a written agreement with the contractor that states that you will reimburse them for certain defined costs incurred in the course of their engagement for you, upon submission of a bill therefore: reimbursing them for costs will not affect their independent contractor status as long as they otherwise are sufficiently "independent" as to maintain their status. (You can find the requirements for when someone is--or is not--an indepedent contractor on the U.S. Dept. of Labor, or DOL, website.) As long as reimbursement of expenses is part of the written agreement pursuant to which they work, there should be no problem.


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