Q: I want to check whether my company can hire online coaches and classify them as contractors.
- It's a Delaware C-corp.
- The coaches and clients could be anywhere in the United States. For the coaches, we can control which states to hire them.
- The coaches will coach their clients over Zoom.
If that's possible, I'd like some help to draft a contract/agreement that can work in multiple (and hopefully most) states.
A: Yes it is probably possible in many states, depending on how the relationship with the coaches is structured, how they are supervised, etc. The details here will be important, otherwise you can run afoul of tax and employment laws quite easily. If structured right, what you've described could certainly be viable.
1 user found this answer helpful
A: There are ways to draft a contract that will meet the requirements in most circumstances. My experience in handling audit issues under AB5 has shown that there are basic principles that can used to justify classifying a coach as a contractor rather than an employee. My extensive experience in writing and negotiating contracts for use in all states would enable me to prepare the necessary contracts.
A: Very difficult in California with new definitions of "employee" from case law and statute. Only 3 factors required for most jobs, and if the work being done is part of the company's business, very strong chance your contractors will be considered to be employees. You really need to discuss with employment law attorney. If you do business in California, if the Contractors are located in California, you will come under California law and it does not matter where you are incorporated or where your primary place of business is located, they will be employees under California law. There might be a domino effect on the employees in other states. Class action lawsuits cost a fortune to defend and if you lose, the damages are very high.
Justia disclaimers below, incorporated herein.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.