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  1. #1
    Join Date
    Apr 2011
    Posts
    1

    Default Is It Legal for Employers to Fine Independent Contractors

    My question involves independent contractors in the state of: California

    Hello,

    I am a ice hockey referee, working for an organization that is responsible for scheduling assignments and handling payroll. We are considered independent contractors. The organization has a policy of fining it's members for cancelling assignments, even if it is due to illness, death in the family, etc. The fines can range from $5 for cancelling more than three days in advanced, to the entire amount of the game fee. (Average game fee is about $40)

    I wonder if this is legal? I know in most cases that it is illegal for employers to deduct pay from an employee, but I don't know if the same applies for IC's. There has been times where I am bedridden with an illness, and I am forced to cancel my day of assignments, resulting in fines of up to $160. I would have to work about four assignments for nothing just to break even at zero.

    Any response regarding the legality of this practice is appreciated. Thanks!

  2. #2
    Join Date
    Dec 2009
    Location
    Lake Chapala
    Posts
    3,043

    Default Re: Is It Legal for Employers to Fine Independent Contractors

    Are you being paid via payroll? With statutory deductions being made? If so, then you are an employee, not an IC. If, however, you are being paid by accounts payable, then you are an IC. And if you're an IC:

    There are no laws against fining independent contractors. The only place you might find something against this practice would be in your contract with the scheduling agency. If there's nothing there, or you don't have a contract, then unfortunately you're SOL on this one.

  3. #3
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Is It Legal for Employers to Fine Independent Contractors

    if it's in the contract you agreed to, they can do just about anything. There is much less governmental involvement in an IC relationship than there is in an employer/employee relationship. There really is no way to compare the two as they are two very different situations.

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