The University uses several types of contracts and agreements
to handle various employer-employee-contractor relationships. This table
will help you determine whether your relationship is with an Independent
Contractor or Employee:
|
1. Determine whether
your relationship is with an Independent Contractor or Employee:
|
|
Relationship Determination
Table
|
Independent Contractor
|
Employee
|
|
Behavioral Control: Right to direct and control
details and
means by which worker performs services.
|
| Can the University control the manner
of the performance (when, where and how to do the job)? |
No
|
Yes
|
|
Financial Control: Right to
direct and control economic aspects
of the worker's activities.
|
Has the worker invested
in facilities (such as an office) used to perform services?
|
Yes
|
No
|
Are the worker's services available
to other employers?
|
Yes
|
No
|
| Will the arrangement prevent the worker
from realizing a profit or suffering a loss? |
No
|
Yes
|
|
Relationship of Parties: Intent
of parties concerning status
and control of worker.
|
| Will the worker receive
any employee benefits? |
No
|
Yes
|
| Will the worker receive
any training from UCSB? |
No
|
Yes
|
| Can the worker end the
employment relationship at any time without incurring liability? |
No
|
Yes
|
2. If your relationship is with
an EMPLOYEE, contact Human Resources.
ooIf
your relationship is with an INDEPENDENT CONTRACTOR, you need
to determine
oowhat type of contract to request
- a Request for Service Form or
ooan Independent Consultant Agreement.
|
|
Contract Determination Table
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Consultant Agreement
|
Personal/ Professional Services
Agreement
|
Behavioral Control: Right to direct
and control details and
means by which worker performs services. |
| Can the University control the result
of service? |
No
|
Yes
|
|
Nature of Work:
|
| Is the work primarily advisory in nature,
providing a recommended course of action for a clearly delineated
problem, having an end product which is basically a transmittal
of information (either written or verbal)? |
Yes
|
No
|
|
(See EXAMPLES below
for a sample of typical suppliers of Personal or Professional
Services)
|
Having trouble making a determination?
Just give us a call and we'll be happy to
help at x5836.
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UC Business and Finance Bulletin BUS-43
(and other sources)
Independent Consultant
- an independent consultant relationship exists when the
University does not control either the manner of performance or the result
of the service. An independent consultant is a type of independent
contractor of recognized scientific, professional or technical competence
that primarily provides scientific, expert, or technical advice. The use
of an independent consultant is expected to be infrequent and is primarily
used to solve a clearly delineated problem. They may not be used to direct
or carry out a major portion of a program.
To process this type of agreement, complete and submit a Request
for Independent Consultant Services to the Purchasing Department.
Independent Contractor - an independent contractor relationship
exists when the University has the right to control only the result
of the service, not the manner of performance. The service is useful
labor performed for another that may or may not produce a tangible commodity.
Agreements with Independent Contractors may be processed by the Purchasing
Department in one of two different ways:
- Personal and Professional Services -
Personal and professional services are defined as being infrequent,
technical, or unique functions performed by an independent contractor.
The selection of an independent contractor providing personal and professional
services is usually based on skill, knowledge, reputation, and creativity.
Price may be a secondary factor in the selection.
EXAMPLES of personal or professional services are trainers,
speakers, translators, technical writers and editors, web designers,
art models, practitioners of medicine and the medical arts, suppliers
of architectural and engineering services, researchers, and the performing
artists.
To process this type of agreement complete and submit a Request
for Services Form to the Purchasing Department.
- Common Services - Purchase Order
Common services are defined as standard services readily obtainable
from competent independent contractors. The selection of the independent
contractor providing common services is usually based on price (i.e.,
the lowest quote meeting specifications wins the bid).
EXAMPLES of common services include equipment maintenance
and repair and installation services.
To process this type of agreement submit a Purchase
Requisition to the Purchasing Department.
Employee - an employer-employee relationship exists when
the University has the right (whether or not it exercises the right) to
supervise and control the manner of performance, as well as the result
of service. Agreements with employees are based on standard employment
practices through Human Resources.
Special considerations apply when a University Employee also acts in
the capacity of Vendor supplying goods or services to the University.
See Conflict of Interest
(*pdf) for further information.
UCSB Contracts
& Property
UCSB policy on Use of Independent Consultants:
http://www.policy.ucsb.edu/vcas/business-serv/5260_ind_consult.html
UCSB policy on Securing Services of an Independent Consultant:
http://www.policy.ucsb.edu/vcas/business-serv/5265_ind_consultants.html
BUS-43 - Materiel Management
http://www.ucop.edu/ucophome/policies/bfb/bus43.html
BUS-34 - Securing the Services of Independent Consultants
http://www.ucop.edu/ucophome/policies/bfb/bus34.html
BUS-77 - Independent Contractor Guidelines
http://www.ucop.edu/ucophome/policies/bfb/bus77.html
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