Independent Contractor & Special Consultant
The California State University (CSU) Additional Employment Policy (HR 2002-05) establishes reasonable limits on the total amount of employment an individual may have within the CSU system. A maximum of 125% time-based is allowed for both “additional” employment opportunities (all CSU combined employment) as well as for “outside” employment opportunities (employment opportunities not compensated through the CSU payroll and directly compensated by a CSU foundation or other CSU auxiliary). When determining the 125% additional employment under the CSU Additional Employment Policy, all CSU employment and all outside CSU foundation and other CSU auxiliary employment are considered together. All required approvals for additional employment must be obtained before work begins with another CSU campus (including the Chancellor’s Office) or with a CSU foundation or CSU auxiliary (see process instruction below).
Please contact Classification Compensation prior to assignment of additional work to any current CSU employee for further review.
For Faculty Additional Employment, please refer to the Office of Faculty Affairs and Success Additional Employment website.
- Definitions
Independent Contractor
- An independent contractor is an individual who is hired to perform a specific task and the employer controls only the result of the work, not the means and methods of accomplishing the result.
- The Independent Contractor process is used when hiring an individual, sole proprietor, partnership, single-member LLC or closely held corporation.
- Note: An individual cannot be both an employee (Staff/MPP, Faculty or Student Employee) and an independent contractor for the same employer at the same time.
Tech Letter HR/Salary 2021-07 - Independent Contractor vs Employee determinations (PDF) (PDF)
Special Consultant
- A Special Consultant performs special assignments of a temporary nature, based on a particular knowledge, ability or expertise. This classification should be used for work that meets the duties test for exempt-level work under the Fair Labor Standards Act (FLSA).
- Individuals appointed to the Special Consultant classification are employees of the California State University and as such are required to complete appropriate employment paperwork such as an Employment Application, the Form I-9, Oath of Allegiance, etc.
- Special Consultants may be subject to a background check depending on the nature of the duties being performed. Assignment cannot begin until background has cleared.
If the individual being hired is a current Chico State faculty member, please contact the Office of Faculty Affairs and Success to ensure the work is not considered faculty bargaining unit work before moving forward.
- Payment Process
Independent Contractor
Campuses must comply with State/Federal laws and CSU policies regarding the proper classification of employees and independent contractors. The determination of whether an individual should be classified as an independent contractor of as an employee is not straightforward. It requires detailed analysis of each situation’s unique circumstances. Because of recent changes in the law, past approval of an individual as an independent contractor should not lead to a presumption that the same classification will be made again. Convenience cannot be a determining factor for classification. It is important to understand that misclassification can result in considerable wage and benefit obligations, financial penalties, tax consequences, and other liabilities.
The Independent Contractor process is now through CSUBuy, prior to contacting your Procurement Specialist please make sure the individual you are attempting to hire meets the requirements of an Independent Contractor. The department will be required to complete 23 questions that will help Human Resources determine if the work can be conducted by an Independent Contractor or if they will need to be hired in another manner.
Of the 23 questions, if the answer is YES to any of the following questions DO NOT continue with an Independent Contractor. Please contact Classification and Compensation for an alternative means of compensation:
- Did the worker retire/separate from the CSU fewer that 2 (two) years ago?
- Was an employee in a policy making position or an MPP?
- Will the worker participate in the process of planning, negotiations, transactions, or any part of the decision making process?
- Will the worker’s position be funded by a CSU contract?
- Will the worker be responsible for supervision of CSU contracted employees?
To request the services of an Independent Contractor, please contact your Procurement Specialist for assistance with the three step CSUBuy process:
- Get a quote from the contractor
- Request a new supplier CSUBuy
- Once the supplier is approved, enter a requisition in CSUBuy
Special Consultants
Once you have received approval from Classification and Compensation that a Special Consultant is the correct way to compensate an individual please refer to Special Consultant Resources for forms and timesheets.