Legal Hotline: (844) 804-2016

Q&A about terminating a distribution agreement with an independent contractor

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Question: If an independent contractor newspaper carrier provides the publisher a 30-day advance written notice to terminate the distribution agreement, can the publisher re-contract the route and replace the contractor in less than 30 days without being financially responsible to pay the contractor for the full 30 days?

Answer: It would be in breach of contract to do that. The contractor is giving you 30 days' notice in the "without cause" context. If the publisher contracted with someone else to deliver in that area and deprived the existing contractor of his/her contract right to continue delivering during the 30-day notice period, the publisher would be subject to damages. Furthermore, to do so would be inconsistent with the agreement and independent contractor status.

Question: What if the publisher gave the contractor a 30-day advance written notice of termination? Can the publisher end the contract relationship before the expiration of the 30 days?

Answer: The contract relationship can be ended before the expiration of 30 days, if by mutual agreement between the contractor and the publishing company. Otherwise, the publishing company is liable to the contractor for 30 days' profit if contractor is not permitted to deliver during the 30-day notice period.

Note: Nothing in this SNPA Legal Hotline Q&A should be relied upon as legal advice in any particular matter.

L. Michael Zinser is the founding partner of The Zinser Law Firm in Nashville, Tenn. The firm, which has a heavy concentration of clients in communications media, represents management in the area of labor and employment. Zinser can be reached at (615) 244-9700 or mzinser@zinserlaw.com.


SNPA's free Legal Hotline for members – (844) 804-2016 – is designed to assist newspapers with a broad range of legal issues. Hotline attorneys and CPAs will tackle questions about circulation, independent contractors, labor and employment law, taxes, finances and accounting, employment benefits, open records, libel and privacy, and other issues newspapers encounter.

The attorneys and CPAs who will take calls from SNPA member newspapers are the best in the business:  The Bussian Law Firm PLLC, Fisher & Phillips, Way, Ray, Shelton & Co., P.C. and The Zinser Law Firm.

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