NUMBER:                               262

SUBJECT:                              PERSONAL SERVICES: INDEPENDENT CONTRACTOR VS 

                                                  EMPLOYEE STATUS

AUTHORIZING BODY:      VICE PRESIDENT FOR FINANCE & ADMINISTRATION

RESPONSIBLE OFFICE:    CONTROLLER'S OFFICE

DATE ISSUED:                      JUNE, 1986  

LAST UPDATE:                    OCTOBER, 1993  

RATIONALE:   To provide guidelines for determining whether an individual providing services to Oakland University should be classified as an independent contractor (paid on a Direct Payment Voucher) or an employee (paid on the payroll with appropriate deductions). The scope of these guidelines is limited to those persons providing services that would be considered workshops, seminars, lectures, teaching, or artistic performances.

POLICY:

When a work engagement is short and "one-time", the university cannot control the method and results of performance, and so does not have legal control. In effect, we are buying a "package" created and controlled by the independent contractor.

1. If the individual is expected to provide on-going services to the university, each work engagement (however short) shall be considered employment.

1. If the individual has been classified or will be classified an employee due to other work performed or to be performed, the individual engagements shall be classified as employment.

2. If the individual will be hired for multiple engagements during a calendar year, each engagement (however short) shall be considered employment.

3. If the individual is appointed with the title of special lecturer, lecturer, applied music instructor, or applied nursing instructor, the individual shall be considered an employee.

2. If the work engagement will take place within three consecutive days (and the individual is not determined to be an employee as a result of 1 above), the individual shall be classified as an independent contractor.

If the work engagement takes place in more than three consecutive days but within two or less consecutive weeks, the work engagement must be reviewed with the Controller or the Director of Risk Management and Contracting, who shall make a determination.

If the work engagement will take place in more than two consecutive weeks, the individual shall be classified as an employee.

Example:

A single engagement to teach eight hours on a Saturday shall be considered an independent contractor relationship; an engagement to teach two hours on three different Saturdays is to be classified as an employee relationship.

Return to Table of Contents