HR2411 - REDLINE RESCIND.PDF

Maricopa County Title: Independent Contractors Number: HR2411
Internal Policy
Issue Date: October 6,
2010RESCINDED: MM-DD-YYYY
Policy Category: Hiring Approved By: Maricopa Revision No: 1N/A
County Board of Supervisors
Initiating Department: Human and Special Districts Revision Date: Oct. 17, 2012Board
Resources of Supervisors Agenda Number:
C-##-##-###-#-##
RESCIND REASON
County Policy HR2411 has been reviewed by Human Resources and the Office of
Procurement and found that the procedures described have not been utilized or necessary
for proper functioning of County departments. Official rescission of this policy is requested.
Revision History
Version Revision Date Description of Revision
1 10-6-2010 Initial version
2 10-17-2012 Amended by the Board of Supervisors
3 MM-DD-YYYY Policy rescind (C-##-##-###-#-##).
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Maricopa County Title: Independent Contractors Number: HR2411
Internal Policy Issue Date: October 6,
2010RESCINDED: MM-DD-YYYY
Policy Category: Hiring Initiating Department: Human Revision No: 1N/A
Resources Revision Date: Oct 17, 2012Board
of Supervisors Agenda Number:
C-##-##-###-#-##
I. PURPOSE
This policy permits the use of independent contractors, pursuant to the Maricopa
County Procurement Code, MCI-340.A., in specific situations where a department
requires the services of an independent contractor to perform specific, specialized
functions for limited periods of time. No independent contractor may be hired without
the approvals of Office of Procurement Services and the Office of Management and
Budget.
II. APPLICATION
This Policy applies to all Maricopa County elected offices, appointed departments and Special
Districts. It does not apply to the Superior Court of Arizona in Maricopa County.
III. DEFINITIONS
A. Human Resource Department (HR). The central services office of the County
responsible for the human resource functions and administration of Human
Resources policies and procedures.
B. Independent Contractor. A person who contracts with the County to provide
specialized or requested services on a project or as-needed basis. Workers
hired pursuant to this policy are not employees of the County; hiring departments
must ensure that the terms of employment for any workers hired under this policy
must conform with the prevailing IRS definition of an independent contractor as
of the date that the working relationship commences, Specific requirements and
restrictions applying to independent contractors are addressed in this policy.
C. Office of Management and Budget (OMB). The central services office of t h e
County responsible for the annual development and administration of department
budgets and the formulation of County-wide budget policies and procedures.
D. Office of Procurement Services. The central services department of the County
responsible for the oversight and execution of County-wide procurement
activities.
IV. REQUIREMENTS FOR THE USE OF INDEPENDENT CONTRACTORS
A. Workers hired as independent contractors shall not be eligible for any of the
following as a result of their work for the County, nor shall any of the following
be made available to an independent contractor during the term of his/her
contract:
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Maricopa County Title: Independent Contractors Number: HR2411
Internal Policy Issue Date: October 6,
2010RESCINDED: MM-DD-YYYY
Policy Category: Hiring Initiating Department: Human Revision No: 1N/A
Resources Revision Date: Oct 17, 2012Board
of Supervisors Agenda Number:
C-##-##-###-#-##
1. Health and welfare benefits;
2. Participation in a pension plan;
3. Paid time off;
4. An increase in compensation.
B. In addition, workers hired as independent contractors shall not be subject to
state and federal income tax withholding, nor shall they have Social Security
payments or workers' compensation premiums withheld from their wages.
Workers hired as independent contractors shall not be eligible to submit a claim
for workers' compensation, unemployment insurance, or for violation of state
wage and hour requirements related to the contracted work performed for the
County.
C. Independent contractors shall only be paid by the job, not for time spent
performing the work.
D. Departments shall not spend in excess of $250,000 per year for the services
of an independent contractor.
E. Departments that seek to retain the services of an independent contractor must
comply with the following limitations:
1. The independent contractor must perform specialized work, or a function that
the department is unable to perform. The work performed should assist
departments in achieving results as defined in its Strategic Business Plan;
2. The service or work performed by the independent contractor will only be
necessary for a specified, limited period of time;
3. The independent contractor will operate independently and without
department oversight, and will perform the contracted service or work using
his/her own methods. In other words, the independent contractor:
a. may choose to have the work performed by someone they hire to
assist them,
b. may choose the work hours,
c. may choose the location the work is performed,
d. may decide how the work is performed,
e. shall not be required to submit progress reports;
4. The department will not train the independent contractor to perform the
contracted service or work, nor will the department provide the independent
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Maricopa County Title: Independent Contractors Number: HR2411
Internal Policy Issue Date: October 6,
2010RESCINDED: MM-DD-YYYY
Policy Category: Hiring Initiating Department: Human Revision No: 1N/A
Resources Revision Date: Oct 17, 2012Board
of Supervisors Agenda Number:
C-##-##-###-#-##
contractor with any tools or equipment needed to perform the contracted
service or work. This restriction shall not preclude the provision of a small
workspace with a computer if it is necessary for the independent contractor
to access the County's intranet and/or databases in order to perform the
requirements of the contract;
5. The independent contractor shall not receive payment for business or traveling
expenses; and,
6. The independent contractor shall not be precluded from working for other
entities during the term of the contract with the County.
F. All contracts shall be terminable at the convenience of the County and/or for
failure to comply with the terms of the contract.
G. The independent contractor is responsible for satisfactory completion of a job
and shall be liable for failing to complete the job in accordance with the terms
of the contract.
H. Independent contractors shall receive an I.R.S. Form 1099 itemizing the total
amount paid to them for the tax year ending December 31st of each calendar
year.
V. PROCESS FOR HIRING AN INDEPENDENT CONTRACTOR
A. Departments requiring the services of an independent contractor as defined
in Section III.E.1 - 6, above, must submit a written request to OMB justifying
the need to hire an independent contractor for a specific, limited period of time.
All departments submitting such requests must demonstrate that the services
of the independent contractor can be paid from the department's appropriated
budget.
B. After submitting the written notice to OMB, and upon receiving its approval,
the hiring department must then submit a written notice to the Office of
Procurement Services of the department's intention to solicit the services of an
independent contractor for a specific, limited period of time. The Human
Resources Director should be copied on the notice.
C. Departments requesting authorization to hire an independent contractor must
also submit a detailed scope of work to the Office of Procurement Services
and OMB that includes the specific services or deliverables the independent
contractor shall produce during the term of the contract. The department shall
also provide written confirmation that its relationship with the independent
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Maricopa County Title: Independent Contractors Number: HR2411
Internal Policy Issue Date: October 6,
2010RESCINDED: MM-DD-YYYY
Policy Category: Hiring Initiating Department: Human Revision No: 1N/A
Resources Revision Date: Oct 17, 2012Board
of Supervisors Agenda Number:
C-##-##-###-#-##
contractor shall conform with the requirements of this Policy.
D. Upon receipt of the scope of work from the hiring department, and
confirmation of approval by the Office of Procurement Services and OMB,
Human Resources shall post the advertisement for the independent
contractor for a minimum of two (2) consecutive weeks using such sources
as are reasonable, taking into account the scope of work and the necessary
qualifications and experience. This posting process shall be a proxy for the
posting of an RFP.
E. The advertisements posted shall clearly state the following:
1. That the contract term shall not exceed three (3) years in length;
2. That all terms negotiated by the Office of Procurement Services, including
compensation, shall be fixed for the term of the contract;
3. That the contract will be subject to termination at the convenience of the
County and/or for failure to comply with the terms of the contract.
F. At the conclusion of the two (2) week posting period, the hiring department
shall work with Human Resources to select the applicants to interview from
the pool of all applicants.
G. The hiring department shall select individuals to participate on the interview
panel. There shall be no minimum number of panel members required, except
that one of the panel members must be a senior manager from HR or their
designee.
1. The interview panel shall interview the designated applicants and shall
select the most qualified applicant, based on education, experience and
other relevant factors such as price, or familiarity with the scope of work.
2. Based on the recommendation of the interview panel, the hiring
department shall notify the Office of Procurement Services of the applicant
selected for the contract award.
H. After receiving notification that the hiring department has selected an
independent contractor, the Office of Procurement Services shall negotiate the
final terms of the contract, and will then process the contract in the same
manner that it processes all other procurement contracts.
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