Yes, there are risks associated with hiring contracted last mile delivery drivers, which can impact your business operations and reputation. Trying to achieve compliance without a systematic approach can put any business at risk. Final mile delivery companies conducting business with independent contractors need to be prepared for agency investigations and have the required documentation to support their position of ‘an arm’s length relationship.
Here are some additional best practices to help ensure compliance is maintained:
- Develop a company-wide independent contractor policy to ensure a distinct and separate relationship.
- Verify your independent contractors have an established business entity with a business name and EIN to make invoiced payments.
- Negotiate rates for service, agreed upon by both parties and outlined in a signed contract with a detailed statement of work and a non-renewable contract end date.