Passing on contractor hours
<p>If company A contracts company B to be paid by the hour, and company B contracts an individual C, also paid by the hour, is it legal for company B to pass on the hours their own contractor C billed them for to company A is if the individual C were company B's employee?</p>

<p>Real world example: a company is contracting a software development LLC for some development worked paid by the hour. The software development LLC wants to hire a tester via contract to test this software for a few hours. The softwere dev LLC pays their tester, then bills the hours the tester works on the client's project to their client. </p>

<p>I know that companies bill their clients for hours their on-payroll <strong>employees</strong> worked, but my question is specifically whether or not the hours of one contractor can be passed on by another to their client for working on the client's project.</p>

<p>Also, the question is regarding United States law.</p>

<h2>Yes</h2>

<p>One of the major factors that distinguishes a contract relationship from an employment relationship is the ability of the contractor to sub-contract.</p>

contract-law