Individuals working for or owning a business, to which payments will be issued to the business name, must be processed through Purchasing. Please submit an online requisition to Purchasing identifying the vendor name, services to be provided, date of service, amount to be paid, etc.
If a department is planning on hiring and paying an independent contractor (individual) for a total of more than $10,000.00 (ten thousand) during any one fiscal year (July 1 through June 30), the department MUST contact Purchasing at x75142 PRIOR to making any commitment to hire. Purchasing will require certain documentation BEFORE approval is granted to hire.
If an independent contractor has submitted their contract to you for signature, do not sign the contract. You are not authorized to enter into a contractual agreement on behalf of the University. Only a University contracting officer is authorized to sign contracts. Contact Purchasing at x75142 for further instructions.
In the independent contractor (individual or company) is a non-resident alien (NRA), or if you are unsure of the residency status* of the independent contractor, please contact the NRA Accountant in General Accounting at x75154 PRIOR to hiring the individual. The NRA Accountant MUST verify residency status and/or Visa status prior to a department making a commitment to hire. Failure to do so may result in the University being unable to legally hire and pay the independent contractor.
*(Meaning you do not know for a fact if the independent contractor is not a citizen of the United States or in possession of a Green Card.)
It has been the policy of this campus, since January 1, 1997, not to hire as an independent contractor any current employee of the CSU system (including the Chancellor's Office, any CSU campus, or any CSU auxiliary), or former employee who has worked for the CSU within the calendar year. These individuals must be paid as employees for their services.
Per HR 2003-21, additional restrictions became effective January 1, 2004:
Senate Bill 41 – CSU Contract Restrictions
- Restriction 1: A CSU employee, except for those employees with teaching or research responsibilities, may not "contract on his or her individual behalf as an independent contractor with any California State University department to provide services or goods." (PCC 10831)
- Restriction 2: A CSU employee, except for those employees with teaching or research responsibilities, may not engage in any employment or activity for which the employee receives compensation through or by a CSU contract, unless the employment or activity is within the course and scope of the employee's regular CSU employment. (PCC 10831)
- Restriction 3: For two years following retirement or separation from CSU employment, no former employee may enter into a contract "in which he or she engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision-making process relevant to the contract while employed in any capacity by any CSU department." (PCC 108832 (a))
- Restriction 4: For 12 months following retirement or separation from CSU, no former employee may contact with the CSU if he or she were employed by the CSU "in a policymaking position in the same general subject area as the proposed contact within the 12-month period prior to his or her retirement or separation." Excepted are contracts for expert witness services and contracts to continue attorney services. (PCC Section 10411 (b) made applicable to CSU by PCC 10832(b))
Please direct questions regarding the restrictions imposed by Senate Bill 41 and, for information regarding the proper procedures to pay individuals as employees to Human Resources at x75138.
Under Federal law, a worker is either an employee or an independent contractor. An individual should not be both an employee and an independent contractor for the same employer at the same time. The process for providing services between the campuses and/or the Chancellor's Office can be found on page 13 of the CSU Cash Posting Order (CPO) Guidelines.