Define your worker and their company relationship as an...
Independent Contractor Agreement
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“Having an Independent Contractor Agreement in place save our company thousands unnecessary withholdings and potential legal fees. Highly recommended for all business owners with non-employee workers." - Stan H. A-Z Construction LLC Portland OR
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What to Do With an Independent Contractor Agreement
There are many variations of employment available to the public. You could be an employee working for an employer, or you could be an independent contractor. What is an independent contractor? Contractors are employees that serve under their own contract, which means that have no set amount of hours.
The contractor is used whenever he/she is needed. Also, taxation is then labeled as the contractor’s independent business. The employer does not withhold the contractor’s wages, and he/she often does not need to provide any equipment needed for the job(s). One of the first things needed to be filled out when the contractor is officially hired is called an independent contractor agreement.
Once the contractor has initially gone through the employment process, including the interview and all other steps, they will receive the independent contractor agreement. This agreement should state all important information needed for employment of the specific job. Basically, it is a lot like an employee manual or contract, except specialized specifically for independent contractors. Just like regular employees, contractors still have rules and are required to follow them.
All of these rules should be labeled in the independent contractor agreement. An independent contractor has control over how the work is done (so long as it is done in compliance with the law), but the employer may still set guidelines, such as: When the project must be finished, whether or not work(s) created are considered the contractor’s property or the company’s property, certain equipment that must be used on the project, and when payment to the contractor is due.
In situations involving writing or art productions created, as an independent contractor you should have the right to claim yourself as the owner or author of the property, unless specifically stated in the independent contractor agreement. Also, the contract should state how long you will be working for them, whether for a special project or for an indefinite period of time.
If sensitive information is shared with the independent contractor to help him complete his job, the independent contractor agreement should include a non-disclosure and non-circumvention provision.
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