Bulletproof Independent Contractor Agreements
One of the most common issues facing businesses is how to prepare an ironclad agreement with independent contractors. Many businesses use independent contractors to perform critical operations that enable the business to run and grow.
To protect your company’s future, you must have written agreements in place with each independent contractor you hire. Not only do they provide legal protection, but they also create a sense of professionalism and ensure an efficient and streamlined process to complete the project.
The key terms to be included in the independent contractor agreement include:
- Full Legal Identity of Both Parties,
- Detailed description of the services being provided by the independent contractor
- Clear description of payment terms, including fixed job or project fees, how and when payment is rendered
- Scope of the Project, if applicable, including project timeline with deadlines
- Applicable industry standards
- Responsibilities of the Contractor
- Description of materials, supplies and equipment to be furnished by the contractor
- Declaration that agreement constitutes an independent contractor relationship
- Declaration that an independent contractor is self-employed and is not an employee of the company
- Declaration that the independent contractor has the proper licenses and permits to perform the services in question
- Declaration that the independent contractor is a highly skilled professional who does not require additional training
- Declaration that the independent contractor will perform services in compliance with applicable industry standards, policies and procedures
- Declaration that the independent contractor is responsible for paying its own state and federal income taxes, medicare, social security, and other taxes
- Declaration that the independent contractor will not receive any benefits your business provides its employees
- Declaration that the independent contractor carries the necessary liability and worker’s compensation insurance
- An ownership of intellectual property clause protecting business IP, designating contractor’s services as work for hire, and assigning rights to the contractor’s work product to the business
- Indemnification clause that states the independent contractor assumes liability for any violation of patent, trademark or intellectual property infringement
- Indemnification clause that states the independent contractor assumes liability for any personal injury or property damage
- Description of termination and renewal terms of the agreement
- Dispute resolution clause
- Statement regarding the applicable state law and venue for dispute resolution
Call our office to schedule your comprehensive legal audit, so we can advise you on the proper use of contracts to protect your business through effective risk management.
Should a dispute arise between you and your contractor, a written and signed independent contractor agreement is the most ironclad proof of your relationship. Contract attorneys at Filippov Law Group, PLLC can help you develop a bespoke written independent contractor agreement precisely matched with your business needs, as well as other written agreements and contracts you should have in place with your employees, vendors and client. Call us at (832) 305-5529 or email our managing member directly at firstname.lastname@example.org to schedule an appointment.
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