Legal Question in Business Law in California

Subcontracted to perform a service

Is it legal for a company who subs out my services to their customers, to charge me an additional fee to be payed back to the contractor? Basically I am to collect an additional amount from the customer, determined by the contractor, and pay the contractor this amount.


Asked on 3/13/08, 2:49 pm

2 Answers from Attorneys
Jonas Grant Law Office of Jonas M. Grant, A.P.C.

Re: Subcontracted to perform a service

Absent some law or contractual arrangement to the contrary specific to your situation, unless I'm not understanding the question, I don't see any problem with this. Why would the contractor want to do business with you at all, if they'd didn't receive some mark-up on the work? Almost all contractors bill their clients more for the work than they pay their subs or employees - this is how they make a profit.

If I've missed the question, then please rephrase/repost to the bulletin board.

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Answered on 3/13/08, 6:55 pm
Terry A. Nelson Nelson & Lawless

Re: Subcontracted to perform a service

Excuse me? Sounds a little odd the way you described it. Your company could bill the customer you work at whatever they want and pay you your normal pay, but making you collect the 'premium' above your pay is a strange way to do business, but probably not illegal.

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Answered on 3/13/08, 7:47 pm


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