LegalShield provides 9 reasons that you should have a written agreement with an independent contractor. In many states, having a written agreement is one factor in the assessment of whether a worker is an independent contractor or employee. LegalShield has a good listing including:
6. Liability & Licensing – Confirm in the written agreement that the independent contractor has liability insurance and is fully licensed by the state and any other relevant regulatory agencies.
7. Intellectual Property & Competition – You must specify who owns the intellectual property created by the independent contractor under the agreement. You should also include a nondisclosure agreement, which prevents the other party from sharing information with competitors. If an independent contractor has access to customer payment data or any other sensitive personal information, you may also have them sign a confidentiality agreement. Talk with your attorney to determine the best means to protect your intellectual property and customer data.
8. Dispute Resolution – You may choose to include a clause requiring disputes to be settled via mediation. This may help you avoid some legal fees in the event there is a dispute but may not always be in your best interest. Talk with your attorney about the options available to meet your needs.
9. Termination – Set the duration of your agreement. Will the agreement terminate after a year or once work is complete? Who can terminate the agreement prematurely and under what circumstances?
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