Free Independent Contractor Agreement for the United States

Free Independent Contractor Agreement Template for United States

A Free Independent Contractor Agreement is a legally binding document used in the United States to establish a working relationship between a business and an independent contractor. This agreement defines the scope of work, payment terms, and clearly establishes the contractor's status as self-employed rather than an employee. It includes provisions for intellectual property rights, confidentiality, and termination conditions while complying with federal and state-specific contractor classification laws.

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What is a Free Independent Contractor Agreement?

The Free Independent Contractor Agreement is essential for businesses in the United States engaging external service providers. This document helps establish clear boundaries between employment and contractor relationships, protecting both parties while ensuring compliance with IRS regulations and state labor laws. The agreement typically covers crucial elements such as scope of work, payment terms, intellectual property rights, and confidentiality provisions. It's particularly important for maintaining proper worker classification and avoiding potential legal issues related to misclassification of employees as contractors.

What sections should be included in a Free Independent Contractor Agreement?

1. Parties: Identifies the contracting parties and their legal status

2. Background: States the context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Services: Details the scope of work and deliverables

5. Payment Terms: Specifies compensation, payment schedule, and expenses

6. Independent Contractor Relationship: Establishes nature of relationship and contractor's responsibilities

7. Term and Termination: Defines duration and conditions for ending the agreement

8. Intellectual Property: Addresses ownership of work product

9. Confidentiality: Protects sensitive information

What sections are optional to include in a Free Independent Contractor Agreement?

1. Non-Compete: Restricts contractor's competitive activities - use when protecting business interests is crucial

2. Non-Solicitation: Prevents poaching of employees/clients - use when contractor has access to sensitive relationships

3. Insurance Requirements: Specifies required insurance coverage - use when services involve risk or liability

4. Equipment and Resources: Details provision of tools and materials - use when specific resources are needed for work

What schedules should be included in a Free Independent Contractor Agreement?

1. Schedule A - Scope of Services: Detailed description of services to be provided

2. Schedule B - Fee Schedule: Detailed breakdown of fees and payment terms

3. Schedule C - Project Timeline: Milestones and delivery dates

4. Exhibit A - Required Insurance Coverage: Specific insurance requirements and limits

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Industries

Internal Revenue Code (IRC): Federal tax legislation governing contractor classification and tax requirements for independent contractors

Fair Labor Standards Act (FLSA): Federal law establishing standards for worker classification, ensuring proper distinction between employees and independent contractors

Civil Rights Act: Federal legislation protecting against discrimination, which should be referenced in non-discrimination provisions

Immigration Reform and Control Act: Federal law regarding work authorization requirements and verification

State Labor Codes: State-specific regulations governing working relationships and contractor rights

State Independent Contractor Tests: State-specific criteria for determining contractor status (e.g., ABC test in California)

State Workers' Compensation Laws: State regulations regarding workers' compensation insurance requirements for contractors

State Unemployment Insurance Laws: State-specific regulations regarding unemployment insurance obligations

IRS 20-Factor Test: Federal guidelines used to determine worker classification status

Economic Reality Test: Legal test examining the economic relationship between parties to determine worker status

Common Law Agency Test: Legal framework examining control and independence factors in working relationships

Worker Classification: Clear definition of independent contractor status and relationship parameters

Scope of Work: Detailed description of services to be provided and project deliverables

Payment Terms: Compensation structure, payment schedule, and related financial terms

Tax Responsibilities: Clear allocation of tax obligations and reporting requirements

Insurance Requirements: Specified insurance coverage requirements for the contractor

Intellectual Property Rights: Ownership and transfer of intellectual property created during the engagement

Confidentiality: Protection of sensitive information and trade secrets

Term and Termination: Duration of agreement and conditions for termination

Liability and Indemnification: Risk allocation and protection provisions between parties

Non-Compete/Non-Solicitation: Optional restrictions on competitive activities and client solicitation

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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