Independent contractors training costs

You mean, if the contractor were trying to collect from the trainee? I'm pretty sure that wouldn't fly in New Mexico. Anything other than written authorization from the employee is pretty much disallowed - barring theft, and that would be a matter for criminal action. Maybe a signed contract would be enforceable, but since it's not a case of the employee paying for the training I think it would be doubtful

To be more specific roger...

An individual owns a company.

(the trainee is the contractor)

This individual hires independent contractors (1099 workers) to perform the services.

The IC (1099 workers) are already skilled in the work.

The IC's are responsible for their own taxes, insurance, etc.

The company however, must provide some some other paid training to the IC's so the IC understands some specifics on how the company needs things submitted to them, etc. The cost to the company of paying the IC's for this training amounts to $800 per IC. While they are getting this paid training, the company is not billing any clients. It's pure expense.

The IC's make anywhere from $20 to $50 and hour. They pick and choose their assignments.

Now, I know we're dealing with the real world, and you can't get blood out of a stone. If someone disappears right after being trained, you're not going to be able to force them to pay back the $800.

To amend my question a little....Has anyone had an experience of an independent contractor (1099 worker) being asked to sign a contract stating they agree to work X amount of hours after training?

Does that make more sense?

Well, it makes sense all right, but I can only put it in the context of employees in the state of NM. There's no reason to think the same reasoning would either apply or not apply.

I guess I don't even have an approximate answer.

Usually an IC contract includes a time frame - either for the duration of the work assigned to the IC or for 1 year, renewable upon expiration. Frankly, I have never heard of an IC being trained by the corporation after the contract is signed. One hires an IC to perform a specific task that he/she is capable of doing where no training is needed. Why would I hire an IC if I need to train them.

For the record, I've been an IC for a long time and I also have hired IC's and it was always for specific tasks they knew how to do.

As I said they can perform the task. The training is not for teaching them the work.

Is doesn't matter if you understand it or not. That's not the issue.

The question is can an IC sign a contract where they agree to work X amount of time after training, so the company can recoup training dollars paid.

Probably, but so much depends on the local employment regulations. You've been here a long time Chai, surely you realise you're not going to get a legally watertight answer on A2K.

The only person who can give you a definitive answer is a lawyer who specialises in employment/contractual law.

Yeah, you're right izzy. It's not my company in any event.

It's just annoying when someone does a cut and paste of what an IC is like that takes care of it all.

Like many people, I've been an IC (1099 worker) at various times in my life. Sure you know how to do the work. But in my experience there always been a period of being inserviced/trained on how the company wants that work delivered/presented to them.



This is off the subject of the original question, but in this case the ICs give their documentation of what they did to the company, who then submits it to the State for payments. The IC might be doing their work perfectly, but if it isn't documented exactly how the State will accept it from company, it will be denied. It's not as simple as giving the company something that is perfectly acceptable and the usual jumping through hoops to get it to the State government.

We're also not dealing here with ICs making widgets. Rather, an intangible service that must be converted to tangible results to the specs of a third party.

I truly didn't want to get into all that. That's why I formulated my question in as simple a way as possible. I was thinking people would know I had a handle on why these ICs needed training.

Over here a load of schools in Scotland were closed after a wall blew down in one of them, (nobody was hurt, but lots of kids could have been killed if it had happened earlier.) Turns out there was a major construction fault. Now all these building firms, contractors and subcontractors are running round trying to pass the buck over who is responsible.

I do know that quite a few years ago the tax return services offered a course in tax returns to people. If they worked for the tax return service for a certain time, they were not charged for it. If they didn't work for a sufficient amount of time, their credit card was charged for the course.

I don't know if this was helpful, but apparently these firms, at least at that time, made sure they got thier money's worth for training.