What can a subcontractor be charged for regarding their job?

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What can a subcontractor be charged for regarding their job?

I am a subcontractor for a contractor who delivers parmecuticals for a pharmacy. About a month ago, they started requiring us to use a scanner so that they could track where we have been. I have no problem using this little hand held scanner. Today one of the other subcontractors was told by the manager of the contractor we are driving for that we are now being required to pay $17.50 a week for the scanner. Is this legal? As it is we don’t make a whole ton of money and now they are cutting into our bottom line.

Asked on February 14, 2013 under Business Law, Iowa

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

It is a perfectly legal. A contractor or subcontractor, as the term implies, works pursuant to a contract or agreement, whether written or oral. Those agreements, including the portion of the agreement relevant to costs or compensation, can include any terms no inherently illegal. There is nothing inherently illegal about making someone rent or otherwise pay for  a scanner or other equipment, so the contractor can require you to pay this cost.


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