As an independent contractor, the door-to-door collector:
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is not guaranteed a minimum income;
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is not required to conform to fixed hours, devote any particular amount of time to
the business, or produce a minimum volume of collections;
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is required to cover his or her territory regularly, but works out his or her own
schedule of contacts;
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is usually assigned a specific territory and list of people to collect;
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is usually free to engage in other employment, including collecting accounts for other
firms;
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may quit or be terminated at any time;
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receives a fixed percentage of the collection, out of which he or she pays all work
expenses; and
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reports to the office only to turn in collections and obtain new lists.
Some firms, particularly public service organizations, enter into arrangements with
storeowners who agree to accept bill payments from the firm's customers. Under such
arrangements, there is an understanding that customers can pay bills at all times
the store is open for business. The storeowner does not have to be present if someone
is in the store to receive payments. The firms do not require the storeowner to:
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be partial to the firm's customers;
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conform to fixed hours; or
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devote any particular amount of time to the firm's business.
The storeowner deposits all money collected in a bank and periodically forwards copies
of bank deposit receipts, complaint forms from customers, etc. to the firm.
Generally, the firm furnishes the storeowner with the necessary business forms, postage,
and stationery. The storeowner must purchase a surety bond. The firm may pay a salary
for the collection services, or the storeowner may receive a percentage of the money
collected. Such arrangements are usually terminable by either party on 30 days' notice.
Collectors who work under conditions like those described in this section are independent
contractors because they:
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obtain their desired results by their own methods and means and without direction
and control;
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receive no work training;
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do not have to follow prescribed routines;
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receive a salary to produce a certain result; and
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may decide the days, hours, and how to do the work to produce the desired results.
The employing firms cannot set the order of their services or demand first call on
their time and efforts. The assignment of territories and furnishing of collection
lists are merely guides and do not dictate the manner to perform the services.
In addition, collectors who operate under conditions similar to those of the storeowner
are free to conduct their private business activities along with their collection
services.
The firms select collectors who can coordinate the collection work with their private
activities. The important issue to the firms is the collectors’ use of the facilities
the firms provide, rather than how the collectors perform personal services.