Independent Contractors
1. Purpose
This policy provides Brigham Young University Hawaii (“BYU Hawaii” or “university”) criteria for determining, engaging, and paying independent contractors, consultants, and attorneys who provide professional services to the university.
2. Policy
Most individuals hired by the university are considered employees, while some who meet qualifying requirements might be classified as independent contractors as defined below. Because the legal criteria is complex, requests for services to be performed by independent contractors must be approved by Human Resources before any independent contractor may be engaged to perform services.
Requests to contract with full-time, part-time, or student employees as independent contractors are managed by Human Resources but are rarely approved.
If Human Resources, in conjunction with a division or department, has determined an individual qualifies as an independent contractor or consultant, approval for contracting must be obtained prior to entering into a contract with that person. Approval for contracts should be directed to an officer of the university, primarily, the vice president over the area where the work will be performed.
All requests for retaining an individual attorney or firm of attorneys to represent or advise the university for any purpose must be reviewed with and specifically approved by the administrative vice president.
Approval of a request will also serve as an authorization for payment of services.
3. Implementation
3.1 Definitions
3.1.1 Consultants
A consultant is a type of independent contractor who has a skill or expertise not available within the university and is used for a limited period to complete a specifically defined project.
3.1.2 Independent Contractor
An independent contractor is typically someone that provides labor using their own tools, supplies, and facilities, and has the expertise to complete his or her own work without supervision. Independent contractors generally provide this service through their own licensed business and/or a written contract, and they render a service for a specified amount of time and compensation.
3.2 Legal Independent Contractors
All requests for retaining an individual attorney or firm of attorneys to represent or advise the university for any purpose must be reviewed with and specifically approved by the administrative vice president. The request will be reviewed and, if approved, outside counsel will be retained on behalf of the requesting department or division. Unless the required formal approval from the administrative vice president is received prior to the employment of outside counsel, the requesting department or division may be required to pay for legal fees incurred.
3.3 Determining Employment Classification
Human Resources considers various factors, based on relevant law and regulations, in determining whether a worker should be classified as an employee or an independent contractor. Before services are performed, departments desiring to contract for services must contact Human Resources to assess the relationship with the provider and the University to ensure that the individual is properly classified.
3.4 Payment to Independent Contractors
Discretionary funds or petty cash may not be used to pay for independent contractor services. Prior to commencing work, independent contractors must complete the Workday Supplier Add form on the purchasing
3.5 Selection of Contractors
Selection of contractors requires multiple competitive quotes for services considered high dollar value or a sole source approval. See the Purchasing policy.