Ask Felicia: Running Specials as an Independent Contractor

Q: Dear Felicia -

I am currently an employee and an IC for a company (2 separate pay stubs). My question is: Is it ethical for me to run my own specials as an IC? My contract with the company does not state anything in regard to prices or personal promotions. It only states the amount that will be deducted as an independent contractor. As a courtesy, I would definitely bring it up with the company. And also, thank you in advance for any advice you can give me.

~ Confused

A: Dear Confused -

Thanks for your email. Though I am not a labor law or tax professional, I do have some questions in order to help answer yours.

1) Do you have an agreement that says what you are responsible for as an IC? Technically, you should be able to do promotions to get clients in, unless there is something specific in your agreement that says otherwise. Either way, it would be best to talk to the owner of the business to see how you might be able to collaborate while avoiding uncomfortable situations that could somehow be perceived as unethical or dishonest.

2) How is it that you are an IC and an employee? Is it for two different positions or jobs? From the best of my understanding, it is possible to work for someone as both. However, the key factor is that the work you do as a contractor must be substantially different from your employee duties. If you are providing massages in the spa as an employee, but outside of the spa, say, for mobile services, it would not be allowable. However, if, for example, you work as a graphic artist under employee status and as a massage therapist under IC, it might be ok, depending on whether the IC agreement is actually set up correctly.

All in all, employee or IC, to grow your business or clientele, you can still do your part to get new clients in and to get current clients to come back. Talk to the owner of the business about how you can work together to make whatever promotions you do a success for you both.

~ Felicia

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