Employee IC Policy

EMPLOYEE INDEPENDENT CONTRACTOR POLICY

Purpose: This policy establishes requirements and procedures for the engagement, oversight, classification, and termination of Independent Contractors ("ICs") engaged to perform work on behalf of the organization. All employees are responsible for complying with this policy when proposing, engaging, or managing IC services.

Personal Information

Position Information

Proposed IC Engagement Effective Date:

Definitions and Classification Standards

Independent Contractor ("IC") means a non-employee individual or entity retained to perform defined services pursuant to a written agreement. Classification determinations are governed by objective criteria including, but not limited to: behavioral control, financial control, permanence of relationship, method of payment, provision of tools/equipment, ability to subcontract, and written contract terms. Employees must not treat ICs as W-2 employees or direct their daily work in manner inconsistent with IC classification.

Authorization and Approval

No engagement of an IC may proceed without prior written approval from the department head and HR. All proposed IC engagements must be submitted for review using the organization's procurement and contracting procedures. Required pre-engagement documentation includes a completed IC Request, signed written agreement executed by both parties, completed tax and insurance documentation (including taxpayer identification), and any required confidentiality or intellectual property assignment provisions.

Contractual Terms, Payment, and Invoicing

All payments to ICs shall be made only pursuant to a fully executed written agreement specifying scope of work, deliverables, payment schedule, invoicing requirements, expense reimbursement rules, and confidentiality/IP assignments. ICs are responsible for their own taxes, benefits, and insurance unless otherwise specified in writing. Employees must not authorize payments or invoice approval outside established accounts payable processes.

Onboarding, Records and Documentation

HR and Procurement will retain IC files, including the executed agreement, tax documentation, proof of insurance, payment records, and confidentiality/IP attachments. Department managers must provide copies of completed documentation to HR within five business days of execution. Failure to maintain required records may result in immediate suspension of the engagement and disciplinary action.

Confidentiality, Intellectual Property, and Data Security

All IC agreements must include appropriate confidentiality and assignment of intellectual property provisions. ICs shall adhere to the organization's data security standards; employees supervising ICs must ensure restricted access, data handling procedures, and return or destruction of confidential materials upon termination of the engagement. Any breach or suspected breach must be reported immediately.

Compliance, Audit, and Reclassification Risk

The organization reserves the right to audit IC engagements for proper classification and documentation. Improper classification discovered through audit may result in reclassification, assessment of back taxes, liability for benefits, and corrective or disciplinary action against involved employees. Employees must cooperate with audits and provide requested records promptly.

Employee Responsibilities and Acknowledgment of Training

Employees proposing or managing ICs must: (a) obtain prior written approval before engaging ICs; (b) ensure execution of a written agreement; (c) confirm delivery of required tax and insurance documentation; (d) limit directions to outcomes rather than daily control inconsistent with IC status; and (e) promptly notify HR of changes in scope or term. By checking below, the employee acknowledges required training on IC classification and management.

Reporting Violations and Consequences

Suspected violations of this policy must be reported to HR or the compliance office. Violations may lead to remedial steps including cessation of the IC engagement, reclassification, recovery of company losses, and disciplinary action up to and including termination. Employees who knowingly circumvent this policy may be held personally accountable for resulting liabilities.

Employment History

Provide recent employment history for HR records. If not applicable, enter N/A.

Education

References

Provide three professional references.

Legal Disclosures

At-Will Employment: Nothing in this policy is intended to alter the at-will employment relationship where applicable. Either the employee or the organization may terminate employment at any time, with or without cause, unless otherwise provided by a separate written agreement.

Equal Opportunity: The organization is an equal opportunity employer. Decisions regarding procurement of IC services will comply with applicable non-discrimination policies and laws.

Authorization and Certification

By signing below, I certify that the information provided on this form is true and complete to the best of my knowledge. I acknowledge that I have read and understand the Employee Independent Contractor Policy and agree to comply with its requirements. I authorize the organization to contact prior employers and references provided for the purpose of verifying information and conducting any required background inquiries related to this policy and proposed IC engagements.

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