Independent Contractor Agreements
An independent contractor agreement often specifies the type of work or job and the amount of compensation an independent contractor or consultant may receive from the employer. This document also differentiates the independent contractor from the regular worker or employee. Essentially, this document specifies that all intellectual property developed by the consultant belongs to the employer.
An ideal independent contractor agreement basically covers the following:
- The work or service to be performed
- The time duration of work
- The payment clause of the contract, specifying issues such as penalty fee or bonuses
- Confidentiality obligations
- Submission of progress report
- Intellectual property ownership
- Warranty of work performed
- Sub contractor provision
Despite having an independent contractor agreement, potential issues may still arise. An employer must be careful in designating or classifying whether an individual is an employee or an independent contractor. In fact, even if both parties agree that one’s employment is on an independent contractor basis, it is still possible that an individual may be classified as an employee under California Labor Law.
In complex situations like this, an employer may need the assistance of a business and corporate lawyer whose skills and experience may be valuable in drafting an independent contractor agreement and put the proper safeguards that will meet the legal definition of the term.
Business Corporate Attorney can assist you with issues involving the employer and the independent contractor agreement.