Legal Question in Employment Law in California

I live in California and have a legal question? I work for a company that pays commission only for sales of a certain product. Is it legal for me to hire people to generate leads/sales and pay them commission with my own commission? I pay full taxes on it and report it as income but do they have to do the same? If so, how would I go about doing this legally, is there a tax form or something?


Asked on 9/10/09, 12:14 pm

1 Answer from Attorneys
Michael Kirschbaum Law Offices of Michael R. Kirschbaum

It sounds as though you are an independent sales agent. In essence, you are in business for yourself. If so, you are free to employ others to work for you. However, you have to be very careful how you establish your working arrangement for those you contract with. If you call them independent contractors but control how they perform their work, you could end up being liable for not paying their taxes and run the risk of other labor violations.

There is good information on the website for the California Division of Labor Standards Enforcement to consider, regarding the difference between an employee and an independent contractor. You need to do your research before you decide what is the right business model for you. Or, you can hire an attorney to consult with or help set this up for you.

Read more
Answered on 9/10/09, 4:34 pm


Related Questions & Answers

More Labor and Employment Law questions and answers in California