Include These Provisions in Your Independent Contractor Agreements

If your business relies on independent contractors, you may want to consider some type of agreement with those contractors, to spell out the rights and responsibilities of all parties. But there can be special considerations with independent contractors, and the contracts that you have with them.

Obviously, there are all types of contractors that are hired for all different kinds of reasons so there is no one contract that works for all types of contractors. You should see a good business law attorney, about drafting a contract that works for your specific situation.

Clarifying the Role of Independent Contractor

Many businesses get in trouble because they call an employee, a contractor. Assuming you’re not making that mistake, you may want your contract to detail some of the ways that your contractor is, in fact, a contractor.

As an example if your contractor can work for other businesses while he works for you, or if your contractor can come and go as he or she pleases (all hallmarks of a true independent contractor), then your contract should say that, strengthening the argument that this person is, truly, a contractor and not an employee.

Insurance and Liability

Remember that contractors are working for you — but they’re also working for other people, or sometimes, are working on their own schedule.

You may want to spell out when the contractor is actually “on the job,” and when she is not, and include language that ensures that you aren’t liable if the contractor injures someone, or violates someone else’s rights, or does anything that could lead to liability, while the contractor is working for someone other than you.

If your contractor will have to get on the road while he or she is working or you, remember to talk to your insurance company, to get proper coverage — if that contractor were to injure someone while out or on the roads doing work for you, your business could be liable.

Protecting Information

Your contractor is free to come and go as she pleases, and may only be with your company for a short time to do the job needed — but he also may be exposed to your company’s trade secrets and confidential information. While limiting this kind of access is the best option, where it is impossible to limit, don’t forget nondisclosure and confidentiality clauses for contractors.

Use and Creation of Intellectual Property

If your contractor is creating IP for you, you will need an agreement that says that your business, and not the contractor, owns whatever was created. Even if the contractor isn’t creating any IP, if he is using IP from other sources (for example, a website creator that is going to pull graphics from online to design your page or social media site), you’ll want to make sure that you aren’t liable for any infringement that the contractor may commit.

Need help with your independent contractor agreements? Call our Fort Lauderdale business attorneys at Sweeney Law P.A. at 954-440-3993 for help.

Source:

law.cornell.edu/wex/work_for_hire#:~:text=A%20work%20for%20hire%2C%20or,party%2