Legal Question in Employment Law in California
In California, can a sales person be paid commission only? I do not want to make him an employee of the company since I am a start-up LLC. Can I pay him as an independent contractor even if he isn't incorporated? I would have him sign an independent contractor contract, but I don't want to have to worry about him later being reclassified as an employee. This would be a part-time job for him -- he already works full-time somewhere else.
2 Answer from Attorneys
There is a list of 20 factors that go into determining whether a person is an employee or an independent contractor. The most important of these factors is the degree to control the employer has the right to exert over the person in question, in doing their job.
You can contact the Employment Development Dept. for more information on this subject or go to their website at www.dir.ca.gov/dlse/FAQ_IndependentContractor.htm .