Independent Contractor Services Agreement
This is an Services Agreement between an independent contractor and the party for whom the independent contractor will perform specified services.Document Overview
This is an Services Agreement between an independent contractor and the party for whom the independent contractor will perform specified services.
This document is generally drafted with terms that favor the client, but also includes terms and alternate terms that are neutral and/or favor the Contractor. The document is not tailored for any particular jurisdiction. The terms ""Contractor"" and ""Client"" are used in this form 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 or can be specific tests in for specific industries and rebuttable presumptions for certain types of employees depending on the jurisdiction.
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, it may be that the more projects a contractor works on or the longer the engagement, the more the contractor is likely acting as an employee. Counsel should consult relevant state law to ensure compliance with applicable law.
Further information on drafting the Independent Contractor Services Agreement
For more information on the difference between a contractor and an employee, see Employee vs Independent Contractor: What’s The Difference?
For a step-by-step guide to hiring a contractor, see the Hire a Contractor workflow.
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.
