Even when an individual does not pass the test, there are still a few exceptions where the individual may be an Independent Contractor. The following are noted exceptions when they are used on a limited basis;

  • When hiring
    • Speakers for a fee
    • Honoraria
    • Individuals receiving a Monetary Prize/Award
    • Rents
    • Royalties
    • Referees and Umpires
    • Musicians, Singers, Dancers, D.J.’s, Painters, Sculptors, Comedians, Clowns, and other similar entertainer

However, for these situations contracts are required for performers for other purposes. See Legal Counsel Website .

  • Contract Exception where a Purchase Order can be used in lieu of the contract/ Professional Service Agreement.
    • Payment amount is less than $3,000
    • Procurement sends terms and conditions to payee
    • Unit/department needs to have a detailed scope of work on the requisition