Legal Question in Business Law in Minnesota

Independent Contractor - Can you pay them hourly?
Painting Contractor (sole proprietor) in Minnesota. I have a question with using and being used as an Independent Contractor

I currently subcontracting from another painting contractor (he has a lot of work) They buy all the material and I use my own equipment. We have an extremely fair market value of my work. It is what I would have charged a builder if I needed to do some piecework. I agreed to get paid by the hour as an IC and not by the job/project. (I also carry my own work comp and insurance.) Now, this summer if it stays busy they indicated that I could get other guys in as IC and get a monetary kick back per hour for each hour they work (they will also get paid by the hour).

With times being as tough as they are, I am gladly working for this hourly rate, and to get some guys under me to make money off of them is even better. Is this ok?

I would my subs sign an IC agreement � stating that they agree to an hourly wage, they would have their own insurance and work comp. Is this ok?

Asked on 3/16/07, 1:44 pm

David Anderson Anderson Business Law LLC

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Re: Independent Contractor - Can you pay them hourly?

There are traps with hiring ICs.

A written agreement is highly advisable, and I even recommend that the IC gets incorporated or set up an LLC.

I have 25 years of Business Law experience.

Call or email.

Answered on 3/16/07, 2:10 pm

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