Legal Question in Employment Law in Delaware
Hi,
I have a startup. In short, what I am trying to do is have independent contractors build the web product. My concern is around employee/independent contractor laws and other laws in general.
1. Can I hire multiple independent contractors to work on the same thing at the same time? (Is it legal for multiple independent contractors to be working on the same exact tasks at the same time?)
2. I prefer speed and high quality over costs. I am okay with paying 10 independent contractors, as an example to get a project done faster and of higher quality. But if their contract states when X project is complete, you get paid. Is that legal for all of them to get paid even if say 1 contractor didn�t even do anything?
3. Does that seem more like a team of employees than independent contractors?
4. Is it legal for them to communicate with each other to get the job done? (I won�t be managing them, which I can only do with employees, but what if they manage/work with each other?)
5. Is it legal for me to assign other contractors to basically �assist� or work with another contractor? When the IRS says you may not tell an IC �What work must be performed by a specified individual.� and �What workers to hire or to assist with the work.�
This is very important for me to accomplish hiring multiple independent contractors fully legally. I understand the first response of any sensible person would be to say, �No, I wouldn�t take the risk. Just hire them as employees.� But it is critical that I hire multiple independent contractors and need to figure out what is the best way to structure the Independent Contractor Agreement(s) and how best to implement this.
Thank you so much. I really appreciate any feedback you can give.
1 Answer from Attorneys
The answer is both yes & no. Yes, one can use multiple independent contractors -- but no, one cannot assume that it's up to you or them to decide who in fact can be considered to be an independent contractor and who should be classified as an employee. The classification depends on many variables that change from person to person and from job to job.
With the understanding that you want to do things in lean manner, to have a startup attorney review the individuals' roles is not an expensive ordeal. Since you will be investing a lot of your money into the team and product, consider the benefit of retaining an attorney to help you guide your nascent company properly. The cost of fines will be a lot higher than the cost of legal advise. You owe it to yourself and to your future investors.
Contact me directly for help on this matter
Roman R. Fichman, Esq.
www.TheLegalists.com │ @TheLegalist
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