RE: taking on a subcontractor

[Mailing List <mlist -at- ca -dot- safenet-inc -dot- com>]

Bill Darnall [mailto:darcom -at- sbcglobal -dot- net] tells us: 
> The subcontractor agreement was a fixed-price arrangement and clearly
> spelled-out it was a subcontract to be performed by an independent
> subcontractor. My customer agreed to the subcontracting arrangement.
> The subcontractor signed the agreement as an independent
> subcontractor. She "certified" she met all of the requirements of an
> independent subcontractor.
> 
> My subcontractor worked in her own home and used her own computer and
> set her own hours. She was paid when the work was completed, as
> agreed.
> 
> After she had been paid, she filed for unemployment and listed my
> company as her "previous employer." As the owner of my one-person
> company, I strongly objected. However, the California Employment
> Development Department (EDD) ruled that, subcontract notwithstanding,
> she was not an independent contractor because: she had no valid
> business license, she did not do any advertising, and she did not
> supply her own liability insurance.
> 
> The "plus, plus, plus" I mentioned included many hours of (my) lost
> time and the total obliteration of all tax moneys I had paid into the
> EDD for (real) unemployment.
> 
> I did not intend to sound dogmatic. It was a serious response to a
> serious question. I was telling about my experience with what appeared
> to be a valid subcontractor agreement. That is why I suggested an
> attorney review any subcontract.

I wasn't suggesting that you were dogmatic. I was suggesting 
that you were royally screwed, and that the rest of us need 
to know the details that the screw'O'crats used to bilk you.

This is nasty stuff.

Could other folks fill me in, please?
Is this a Kalifornia thing, or do *most* places compel you 
to have a "business license" in order to exchange your 
skills for somebody's money?  

Like, if I lost my job today, would I have to go spend 
money on a license and jump through additional screw'O'cratic 
hoops before I could seek/accept freelance work to keep 
food on the table?

Is it standard practice for goobermint screw'O'crats to 
sneer and trample contractual arrangements that are 
arrived at, in good faith (by some of the parties, at least), 
in favor of cookie-cutter classifications and rules?

/kevin 

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