Examples of Restrictions for Independent Contractors/ Consultants
Last Updated: February 2, 2023 10:47:53 AM PST
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Read the examples on this page to determine if the independent contractor you want to utilize is eligible under State law.
The California Contract Code regulates our use of independent contractors/consultants and imposes penalties on individuals and entities that violate its restrictions.
An approved agreement or purchase order must be in place PRIOR to committing University funds.
If you request independent contractors and consultants for your department, you need to know how amendments to the Public Contract Code by Senate Bill (SB) 1467 affect University contracts with independent contractors and consultants.
See examples of contractor situations and how to handle them:
| Scenario | Independent Contractor Status | Course of Action/Explanation |
|---|---|---|
| A department wants to hire a programmer from another department to build a website. | Not allowed under PCC - Section 10515-10518 (formerly SB 1467) | Contact Talent Acquisition within Human Resources. |
| A postdoc fellow seeks compensation for research services rendered. | Not allowed under PCC - Section 10515-10518 (formerly SB 1467) | Postdoc fellows are never compensated as independent contractors. Please see the Office of Postdoctoral Scholar Affairs. |
| A non-salaried adjunct professor seeks compensation for research services. | May be allowed. Requires further evaluation. | Employees with teaching and research responsibilities are exempt from the regulations, but must meet independent contractor requirements. |
| A professor seeks compensation for non-research services. | May be allowed. Requires further evaluation. | Employees with teaching and research responsibilities are exempt from the regulations, but must meet independent contractor requirements. |
| An academic administrator worked on a project, then separated from the University. A PI wants the individual to provide continued collaborative involvement on the project. | Not allowed under PCC - Section 10515-10518 (formerly SB 1467) | Contact Talent Acquisition within Human Resources. |
| A department wants to purchase or rent a microscope from an employee. | Not allowed under PCC - Section 10515-10518 (formerly SB 1467) | Goods or services may never be rented or purchased from staff employees. |
| A full-time Assistant II (non-exempt) also plays the harp. She is asked to perform at a Chancellor's reception for $200. | Not allowed under PCC - Section 10515-10518 (formerly SB 1467) | Contact Human Resources. |
| A staff member from one department is asked to teach aerobics courses in another department, for $75 per course. | Not allowed under PCC - Section 10515-10518(formerly SB 1467) | Contact Human Resources. |
| A tenured professor prints t-shirts as a part-time business. The Bookstore proposes to purchase these t-shirts from the professor for re-sale. | Not allowed under PCC - Section 10515-10518 (formerly SB 1467) | Employees with teaching and research responsibilities are exempt from Public Contract Code restrictions, but are still subject to University policies. Because t-shirt printing is commercially available, they cannot be purchased from a UC employee, even one with a teaching/research position. |
| The tenured professor who prints the t-shirts mentioned above offers to sell them to the Bookstore for less money than the Bookstore can get them from any other source. | Not allowed under PCC - Section 10515-10518 (formerly SB 1467) | Employees with teaching and research responsibilities are exempt from Public Contract Code restrictions, but are still subject to University policies. Because t-shirt printing is commercially available, they cannot be purchased from a UC employee, even one with a teaching/research position. |
| A UNEX art instructor is asked by a department to restore a damaged sculpture. | May be allowed. Requires further evaluation. | As teaching/research employees are exempt from Public Contract Code - Section 10515-10518 and if the restoration work cannot be done commercially or by someone within UCR as part of their job duties, the instructor may be paid for these services after an exception has been made by the Materiel Manager |
| Jane Smith was hired as an independent contractor to assist a department in reorganizing staff functions and roles. She completed the contract and has now submitted a new proposal to complete the work recommended in the initial contract. | Not allowed under PCC - Section 10515-10518 (formerly SB 1467) | Consultants who have performed work for the University cannot submit a bid or be awarded a contract for projects relating to the previous contract's findings or recommendations. This is considered a successor contract or follow-on agreement |
Penalties
There are serious penalties, including personal criminal sanctions, for non-compliance with Public Contract Code - Section 10520-10526. They include the following:
- Voided contracts: Every contract or other transaction entered into that is in violation is void.
- Felony: An officer or employee of the University of California who knowingly engages in a prohibited transaction may be guilty of a felony.
- Felony: A contractor to the University of California who knowingly engages in a prohibited transaction may be guilty of a felony.
- Monetary liability: Persons convicted may be liable for monetary damages.
Find answers, request services, or get help from our team at the UC San Diego Services & Support portal or call us at (858) 534-9494.
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