Independent Contractors Network, Inc. (“ICN”) through its proprietary system, LOADCHIEF, found at www.LOADCHIEF.com (“LOADCHIEF”) connects INDEPENDENT CONTRACTORS to DELIVERY COMPANIES using real time postings to create a marketplace of independent drivers free of a single point of employment. The LOADCHIEF website, as well as the LOADCHIEF IOS (iPhone) and LOADCHIEF ANDROID APPS, are designed to enable LOADCHIEF system members to interact with one another in such a manner so that INDEPENDENT CONTRACTORS can act independently. INDEPENDENT CONTRACTORS schedule their routes by accepting pick-up and delivery assignments from any number of DELIVERY COMPANIES who are members of LOADCHIEF. DELIVERY COMPANIES post jobs for bidding in search of INDEPENDENT CONTRACTORS within close proximity to accept LOADCHIEF Jobs. If used properly and adequately, DELIVERY COMPANIES and INDEPENDENT CONTRACTORS may derive economic benefits associated with published guidelines for independent contractors that may be found at www.irs.gov, among other places.
There are several sources of government information concerning operating as an independent business owner, as an independent contractor as it may be commonly known, that may engage you to provide them with goods and services. These government resources may be found, for example, at the following web addresses (www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Defined; www.sba.gov/content/self-employed-independent-contractors; www.dir.ca.gov/dlse/faq_independentcontractor.htm), each of which LOADCHIEF encourages and requests that you access, read the information provided, and consult with your tax advisor before proceeding. The following is not to be construed, rendered or deemed the giving of legal counsel or tax advice, but rather is merely to be considered as a guide to be used by you in transacting business with DELIVERY COMPANIES.
No tax advice is contained in this INDEPENDENT CONTRACTOR UNDERSTANDING and it is not intended or written to be used, and may not be used, for the purpose of (a) avoiding penalties under the Internal Revenue Code, or (b) promoting, marketing, or recommending to another party any transaction or matter addressed herein. Moreover, it is not the intent of ICN for any statement made herein to suggest there is a reasonable basis for a position to be taken without the prior disclosure, advice or counsel from your tax advisor.
This INDEPENDENT CONTRACTOR UNDERSTANDING is an integral part of the User Agreement accepted by you in becoming a INDEPENDENT CONTRACTOR. By becoming an INDEPENDENT CONTRACTOR you are agreeing to the below terms and conditions, in addition to those set forth in the User Agreement. You understand and agree that LOADCHIEF is not rendering any tax or labor law advice or counsel and that your use of LOADCHIEF is not as anything other than as a jobs board. You as the INDEPENDENT CONTRACTOR warrant that you will seek the advice and counsel of your own choosing to determine whether or to what extent it is establishing independent contractor relationships. You as the INDEPENDENT CONTRACTOR agree and represent that you have sought independent counsel prior to entering into the User Agreement and this INDEPENDENT CONTRACTOR UNDERSTANDING that you do so with the understanding that as an INDEPENDENT CONTRACTOR you are not relying upon any tax or labor law advice from LOADCHIEF.
1. Instructions:
An employee receives instructions about when, where and how the work is to be performed. As an INDEPENDENT CONTRACTOR, on the other hand, you will do the Job your own way with few, if any, instructions as to the details or methods of the work. A DELIVERY COMPANY you will post to LOADCHIEF the minimal instructions necessary for you, as the INDEPENDENT CONTRACTOR, to complete the Job and through LOADCHIEF you may contact the DELIVERY COMPANY for more or better instructions concerning the Job.
2. Training:
Employees are often trained by a more experienced employee or are required to attend meetings or take training courses. As an INDEPENDENT CONTRACTOR, on the other hand, you will use your own methods and thus need not receive training from the DELIVERY COMPANY. As the INDEPENDENT CONTRACTOR will use your own vehicle to pick and deliver packages by the date and time requested by the DELIVERY COMPANY. Through its business association with the Association for Delivery Drivers (“A4DD”) or other third-party vendors, as an INDEPENDENT CONTRACTOR you have access to training resources for you to broaden your credentials and therefore qualifications for differing types of jobs posted by DELIVERY COMPANIES.
3. Integration:
Services of an employee are usually merged into the employer’s overall operation; the employer’s success depends on those employee services. As an INDEPENDENT CONTRACTOR, on the other hand, your services are separate from the DELIVERY COMPANY’S business and are not integrated or merged with those of the DELIVERY COMPANY.
4. Services rendered Personally:
An employee’s services must be rendered personally. An employee does not hire their own substitutes or delegate work to them. As an INDEPENDENT CONTRACTOR, on the other hand, who is vetted through the LOADCHIEF System, you are not able to assign another person to complete the Job who is not also a vetted INDEPENDENT CONTRACTOR, and if you are unable to complete the Job, LOADCHIEF states how you must communicate with the DELIVERY COMPANY to avoid a delay in pick up or delivery. This restriction is as a result of the vetting process established by LOADCHIEF and the expectation DELIVERY COMPANIES have that a vetted INDEPENDENT CONTRACTOR will complete the task.
5. Hiring, Supervising & PAying Helper:
An employee may act as a foreman for the employer but, if so, helpers are paid with the employer’s funds. As an INDEPENDENT CONTRACTOR, on the other hand, you may select, hire, pay and supervise any helpers used and are responsible for the results of the helpers’ labor, subject to the restrictions set forth in section 4, above, and, as an INDEPENDENT CONTRACTOR you may hire helpers to assist you in tracking your whereabouts and enabling you to more efficiently perform the Job and increase your profitability throughout the day.
6. Continuing Relationship:
An Employee often continues to work for the same employer month after month or year after year. As an INDEPENDENT CONTRACTOR, on the other hand, you are hired to do one Job of limited or definite duration and there is no expectation of continuing work being provided by any one DELIVERY COMPANY at any given time or location.
7. Set Hours of Work:
An employee may work “on call” or during hours and days as set by the employer. As an INDEPENDENT CONTRACTOR, on the other hand, you are Your Own Damn Boss™, the master of your own time and you decide how many hours you work a day, a week or a month. When you want to make more money, you take on more Jobs.
8. Full Time Required:
An employee ordinarily devotes full-time service to the employer, or the employer may have a priority on the employee’s time. As an INDEPENDENT CONTRACTOR, on the other hand, you must not devote full-time service to any one DELIVERY COMPANY, exclusively, and one DELIVERY COMPANY cannot and must not captivate all your time. To be an INDEPENDENT CONTRACTOR you must bid on and accept Jobs from various DELIVERY COMPANIES, otherwise your status as an INDEPENDENT CONTRACTOR may be jeopardized, as would that of the DELIVERY COMPANY, as each would be compromising the integrity of the LOADCHIEF System.
9. Location where Services Performed:
Employment is indicated if the employer has the right to mandate where services are performed. As an INDEPENDENT CONTRACTOR, on the other hand, you ordinarily work where you choose. As an INDEPENDENT CONTRACTOR your workplace will be away from the DELIVERY COMPANY’S offices and away from the offices or location of the customer from whom you will pick up or deliver Jobs. Your workplace may be where you describe it.
10. Order or Sequence:
An employee performs services in the order or sequence set by the employer. This shows control by the employer. As an INDEPENDENT CONTRACTOR, on the other hand, you are concerned only with your own order or sequence of work, making sure that during the day you are able to timely pick and deliver Jobs, but you order your own route to increase your own efficiencies and profitability.
11. Oral or Written Reports:
An employee may be required to submit regular oral or written reports about the work in progress. As an INDEPENDENT CONTRACTOR, on the other hand, you are not required to submit oral or written reports about the work in progress; however, the LOADCHIEF System will enable the DELIVERY COMPANY to track your progress using our tracking systems and programs and you will have the requirement to report to LOADCHIEF that the package was delivered, thereby enabling invoicing.
12. Payment by the Hour, Weel or Month:
An employee typically is paid by the employer in regular amounts stated intervals, such as by the hour or week. As an INDEPENDENT CONTRACTOR, on the other hand, you will be paid by the Job, either a negotiated flat rate or upon submission of a bid, and you will be paid per invoice stating the Job and price.
13. Business and Travel Expenses:
An employee’s business and travel expenses are either paid directly or reimbursed by the employer. As an INDEPENDENT CONTRACTOR, on the other hand, you will be fully and completely responsible for your own business and travel expenses, without reimbursement from the DELIVERY COMPANY. You must take into consideration the cost associated with performing the Job before accepting it, since as an INDEPENDENT CONTRACTOR your profitability is in your hands.
14. Furnishing Tools & Equipment:
An employee is furnished all necessary tools, materials, and equipment by the employer for the purpose of enabling the employee to complete the tasks assigned as directed by the employer. As an INDEPENDENT CONTRACTOR, on the other hand, you will provide all of the tools and equipment necessary to complete the Job, including without limitation, your own vehicle, cell phone, computer (tablet computer), clothes, fuel, maintenance of your vehicle, hats, shirts, etc.
15. Significant Investment:
An employee generally has little or no investment in the business. Instead, an employee is economically dependent on the employer. As an INDEPENDENT CONTRACTOR, on the other hand, you have a substantial financial investment in your independent business. You will have a separate tax identification number for your independent business that refers and relates to your business as a corporation or as a fictitious business name (dba). You will have your own business card, domain name and website that has all contact information necessary for DELIVERY COMPANIES to identify you with that business, to send payments in the name of that business, and to issue all necessary state and federal tax reporting in the name of that business.
16. Realize Profit or Loss:
An employee does not ordinarily realize a profit or loss in the business. Rather, as long as they are employed, employees are paid for services rendered, regardless of employer’s financial condition. As an INDEPENDENT CONTRACTOR, on the other hand, you can either realize a profit or suffer a loss, with an expectation of continuing depending on your ability to manage your business and to maximize your use of LOADCHIEF to assist you in becoming more efficient and profitable as an independent business.
17. Working for more than One Delivery Company:
An employee ordinarily works for one employer at a time and may be prohibited from joining a competitor. As an INDEPENDENT CONTRACTOR, on the other hand, you will work for more than one DELIVERY COMPANY at the same time and you are not subject to a noncompetition rule with the DELIVERY COMPANY.
18. Making Service Available to the Public:
An employee does not make services available to the public, except through the employer’s company. As an INDEPENDENT CONTRACTOR, on the other hand, you may advertise, carry business cards, hang out a shingle, own and maintain your own website and domain name, or hold a separate business license; and LOADCHIEF encourages you to do some or all these things to market your availability to DELIVERY COMPANIES.
19. Right to Discharge Without Liability:
An employee can be discharged at any time without liability on the employer’s part. As an INDEPENDENT CONTRACTOR, on the other hand, subject to the terms and conditions of the LOADCHIEF USER AGREEMENT, if you perform your work and deliver the Job at, when, how, and where agreed upon with the DELIVERY COMPANY, the DELIVERY COMPANY cannot deny you payment without there being possible liability for breach of contract.
20. Right to Quit without Liability:
An employee may quit work at any time without liability on the employee’s part. As an INDEPENDENT CONTRACTOR, on the other hand, you are legally responsible for Job completion and, in the event you do not complete the Job by delivering it by, when, how and where agreed to with the DELIVERY COMPANY you may become liable for breach of contract.
21. Prohibition to Solicit, Pursue or Contact Delivery Company’s Clients or Customers:
As an INDEPENDENT CONTRACTOR you are not to directly or indirectly contact, solicit, or otherwise “poach” in any manner clients or customers of any other DELIVERY COMPANY, whose client or customer identity is obtained as a result of your accessing LOADCHIEF for the purpose of obtaining Jobs that will be completed by you.
22. Insurance Requirements:
As an employee, your employer is required to provide workers compensation insurance, will insure the vehicles you drive for them while working for them, and pay for other insurance coverages as may be required by their customers and at their choice to cover risk. As an INDEPENDENT CONTRACTOR insurance coverage is up to you; however, not having insurance coverage may disqualify you from certain jobs posted by DELIVERY COMPANIES. As an INDEPENDENT CONTRACTOR, while you are driving under dispatch through the LOADCHIEF platform you are insured for occupational accident insurance and cargo insurance. Many DELIVERY COMPANIES require INDEPENDENT CONTRACTORS have minimum coverage for motor vehicles of 100/300/100 or 300,000 combined single limits (CSL) for all vehicles under 10,000 GVW. Those vehicles over 100,000 GVW INDEPENDENT CONTRACTORS will need commercial insurance to register.
