Employers that engage independent contractors sometimes require them to sign an agreement stipulating that any disputes over the contract must be settled through arbitration, not in court.
However, having such an agreement doesn’t mean a court can’t decide whether those workers are, in fact, independent contractors or employees.
Recent case: Hireem and several other workers performed duties for Mike Campbell and Associates. They all had signed independent contractor agreements with the company. The agreements included a promise to arbitrate any contract disputes.
They sued anyway, contending they were really employees.
The court said that question could not be forced into arbitration because the agreements dealt with interpreting the contract, not with whether they met outside requirements for being considered independent contractors. (Elijahjuan, et al., v. Superior Court, et al., No. B234794, Court of Appeal of California, 2nd Appellate District, 2012)
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/33876/contractor-arbitration-pact-doesnt-always-preclude-court "