This is an Independent Contractor Agreement between an independent contractor and the party for whom the independent contractor will perform specified services in California.

This document has been drafted with terms that favor the client receiving the services and is intended for private employers. Its language has been customized to comply with California and federal law.

The terms "Contractor" and "Client" are used to help avoid the parties' relationship being characterized as an employee/employer relationship. Note, however, that the key determination of whether a worker is characterized as an employee or independent contractor hinges on control. The more a Client controls a Contractor, the more likely an employee/employer relationship exists instead of a client/independent contractor relationship. The determination of whether a worker is properly classified as an employee or an independent contractor faces different scrutiny and has different considerations in other labor areas such as for unemployment and disability insurance requirements, income tax withholdings, and workers' compensation claims. In general, the basic questions still revolve around the right to control, but there are specific tests in California for specific industries and rebuttable presumptions for certain types of employees.

This document has been drafted with these tests and presumptions in mind. However, the question of control hinges on not only the agreement itself, but also on the practice of how the services are provided. For instance, the more projects a Contractor works on or the longer the engagement, the more the Contractor is likely acting as an employee. Employers should consult California counsel to ensure compliance with applicable law.

Further information on drafting the Independent Contractor Agreement (Pro-Recipient) (CA)

• For more information on the difference between a contractor and an employee, see Employee vs Independent Contractor: What’s The Difference?

• For more information on hiring a contractor generally, see How To Hire a Contractor in California and Create a Contractor Agreement That’s Legally Binding.

What does the Independent Contractor Agreement cover?

• Performance of the services.

• Location.

• Payment.

• Client's obligations.

• Intellectual property.

• Confidentiality.

• Relevant warranties and indemnities.

• Termination.

Other names for the Independent Contractor Agreement include:

• Consulting Agreement.

• Services Contract.

This document is part of a Lawpath workflow

Follow the end-to-end procedure for hiring an employee by following the link here.