Helpful Information When Hiring Independent Contractors

As requests to hire independent contractors continues to increase at Caltech, helpful resources and procedures have been established to guide everyone through the hiring process. The California Assembly Bill (AB) 5 Law went into effect on January 1, 2020 and presumes individuals will be hired as employees unless Caltech can satisfy required questions/provisions specified in the Bill regarding Independent Contractors.

Purchasing Services works closely with Human Resources and the requesting Department to ensure that individuals performing services for Caltech are properly classified, and the Independent Contractor Services Worksheet within the Declining PO – Independent Contractor Services Agreement Form is completed and approved prior to individual's start date. A Department representative must certify the information provided in the Worksheet is accurate to the best of their knowledge.

Where to go for help?

For specific questions or contact information, please refer to Procurement Services (https://procurement.caltech.edu/)or Human Resources (https://hr.caltech.edu/), for specific hiring questions.

Online Resources:

• Independent Contractor Training Video
• Independent Contractor Procedure: https://procurement.caltech.edu/documents/17689/Independent_Contractor_Procedure.pdf
• Independent Contractor Services Request Form: https://procurement70.sites.caltech.edu/documents/12964/independent_contractor_services_request.pdf
• Copyright Release Agreement Form: https://procurement.caltech.edu/documents/17760/Copyright_Release_Agreement.pdf
• Procurement Summary Justification Form: https://procurement.caltech.edu/documents/17789/Procurement_Summary_Justification.pdf

AB 5 Individual/Sole Proprietor Analysis Questions:

• Is the individual free from Caltech's control or direction in performing the work?
• Does the work take place outside the usual course of business of Caltech? (Usual course of business being: research & academics)
• Is the individual customarily engaged in an independent trade, occupation, profession, or established business of the work of the same nature?