Stateside Independent Contractor Information
"Independent Contractor" refers to the hiring of an individual. This process helps assess whether it is legally more correct to hire an individual as an employee or to pay that individual as a contractor. It is not applicable to large service agreements made with a company. Those contract agreements
Effective January 26, 2026, the Independent Contractor review process is now integrated in the CSUBUY Procure to Pay (P2P) system. The Independent Contractor Request Form is no longer required. Please make sure the individual meets the requirements of an Independent Contractor.
Overview
The objective of the Independent Contractor Information is to provide direction, clarification, and best practices for the engagement of independent contractors within the CSU and CSUMB. These new procedures became effective due to the California Supreme Court's adoption of a single test for determining whether a person is an employee or independent contractor (See Dynamex Operations West, Inc. v. Superior Court decision). The test, which is now referenced as the “Dynamex Test,” requires significant changes to how CSUMB determines the employment relationship.
In light of the Dynamex Test, before services are performed, CSUMB must assess the relationship between the individual and the campus to ensure that the individual is properly classified. Misclassification of a worker as an independent contractor can result in serious wage and benefit obligations, financial penalties, tax consequences, and other liabilities.