Would you like assistance creating a California independent contractor agreement? At San Diego Esquire, we help businesses and individuals protect their interest by creating independent contractor agreements. Whether you are looking to hire an independent contractor or simply want to make sure your best interest is protected before signing an agreement, contact us for legal advice and counseling before entering into an agreement.
Read on to learn more about California independent contractor agreements.
What is an Independent Contractor?
An independent contractor is the opposite of an employee. The independent contractor works as a solo business owner. The client engages the independent contractor to perform work on its behalf. Because the independent contractor is not an employee, he/she must pay self-employment taxes and income taxes. The independent contractor is free to determine the means and methods as to how work will be performed and accomplished in accordance with the agreement.
At San Diego Esquire, we draft and review independent contractor agreements for professionals and businesses. Our flat fee service starts at $695.
Independent Contractor Agreement Overview
An independent contractor agreement is a legal instrument detailing the terms and conditions of a business arrangement. The agreement defines who, what, when, and where a business service or project will be accomplished. This type of agreement allows both parties to solidify their rights and protect their personal and business interest. Independent contractor agreements set strict parameters regarding a working relationship.
Key Clauses in an Independent Contractor Agreement
The following clauses are commonly included in independent contractor agreements:
- Payment Terms
An independent contractor agreement should have clearly defined payment terms. The payment term should clearly state the amount the client owes you, payment method, and due date. You may negotiate a times and material, firm-fixed fee, or cost-reimbursement agreement.
The agreement should clearly define who owns the work product arising from the services rendered.
- Statement of Work
The statement of work should clearly define the Client’s service needs. Any revisions beyond the scope of work should be reflected in a contract amendment.
A clause regarding how contract disputes will be addressed should be included in the agreement. For example, requiring both parties to go through mediation to resolve a dispute before filing a lawsuit is a reasonable provision.
The Benefits of Preparing an Independent Contractor Agreement in California
California has some of the strictest labor laws in the nation. Such laws highly favor employees. If you fail to execute an independent contractor agreement, you may subject yourself to litigation costing your company thousands of dollars. Work with an experienced independent contractor agreement attorney when drafting your documents. It will be hard to sue an “independent contractor” if you lack an agreement demonstrating the type of services to be performed.
San Diego Esquire can help you draft or review an independent contractor agreement. Do not sign an agreement without first discussing your legal rights and responsibilities with an attorney. Review our California Contract Drafting, Review & Amendment Service for more information.