This independent contractor agreement is between ("the Company"), an individual a(n) and ("the Contractor"), an individuala(n) .

The Company is in the business of and wants to engage the Contractor to .

The Contractor has performed the same or similar activities for others.

The parties therefore agree as follows:


  • (a) Engagement. The Company retains the Contractor to provide, and the Contractor shall provide, the services described in Exhibit A (the "Services").
  • (b) Services. Without limiting the scope of Services described in Exhibit A, the Contractor shall:
    • (i) perform the Services set forth in Exhibit A. However, if a conflict exists between this agreement and any term in Exhibit A, the terms in this agreement will control;
    • (ii) devote as much productive time, energy, and ability to the performance of its duties under this agreement as may be necessary to provide the required Services in a timely and productive manner;
    • (iii) perform the Services in a safe, good, and workmanlike manner by fully trained, skilled, competent, and experienced personnel using at all times adequate equipment in good working order;
    • (iv) communicate with the Company about progress the Contractor has made in performing the Services;
    • (v) supply all tools, equipment, and supplies required to perform the Services, except if the Contractor's work must be performed on or with the Company's equipment;
    • (vi) ensure that all materials and equipment furnished to its personnel is of good and merchantable quality, unless otherwise agreed by the Company;
    • (vii) provide services (including the Services) and end products that are satisfactory and acceptable to the Company and free of defects; and
    • (viii) remove, replace, or correct all or any portion of the work or end products found defective or unsuitable, without additional cost or risk to the Company.
    • (vi) provide services (including the Services) and end products that are satisfactory and acceptable to the Company and free of defects; and
    • (vii) remove, replace, or correct all or any portion of the work or end products found defective or unsuitable, without additional cost or risk to the Company.
  • (c) Legal Compliance. The Contractor shall perform the Services in accordance with standards prevailing in the Company's industry, and in accordance with applicable laws, rules, or regulations. The Contractor shall obtain all permits or permissions required to comply with those standards, laws, rules, or regulations.
  • (d) Company's Obligations. The Company shall make timely payments of amounts earned by the Contractor under this agreement and notify the Contractor of any changes to its procedures affecting the Contractor's obligations under this agreement at least 30 days before implementing those changes.


  • (a) Term. This agreement will become effective as described in section 2120. Unless it is terminated earlier in accordance with subsection 2(b), this agreement will continue until the Services have been satisfactorily completed and the Contractor has been paid in full for such Services (the "Term"). However, this agreement may not remain effective for more than years.
  • (b) Termination. This agreement may be terminated:
    • (i) by either party on provision of days' written notice to the other party, with or without cause;
    • (ii) by either party for a material breach of any provision of this agreement by the other party, if the other party's material breach is not cured within days of receipt of written notice of the breach;  or
    • (iii) by the Company at any time and without prior notice, if the Contractor is convicted of any crime or offense, fails or refuses to comply with the written policies or reasonable directives of the Company, or is guilty of serious misconduct in connection with performance under this agreement.; or
    • (iv) automatically, on the death of the Contractor.
  • (c) Effect of Termination. After the termination of this agreement for any reason, the Company shall promptly pay the Contractor for Services rendered before the effective date of the termination. No other compensation, of any nature or type, will be payable after the termination of this agreement.


  • (a) Terms and Conditions. The Company shall pay the Contractor in accordance with Exhibit A.
  • (b) No Payments in Certain Circumstances. No payment will be payable to the Contractor under any of the following circumstances:
    • (i) if prohibited under applicable government law, regulation, or policy;
    • (ii) if the Contractor did not directly perform or complete the Services described in Exhibit A;
    • (iii) if the Contractor did not perform the Services to the reasonable satisfaction of the Company; or
    • (iv) if the Services performed occurred after the expiration or termination of the Term, unless otherwise agreed in writing.
  • (c) No Other Compensation. The compensation set out above will be the Contractor's sole compensation under this agreement.
  • (d) Expenses. Any ordinary and necessary expenses incurred by the Contractor or its staff in the performance of this agreement will be the Contractor's sole responsibility.
  • (e) Taxes. The Contractor is solely responsible for the payment of all income, social security, employment-related, or other taxes incurred as a result of the performance of the Services by the Contractor under this agreement, and for all obligations, reports, and timely notifications relating to those taxes. The Company has no obligation to pay or withhold any sums for those taxes.
  • (f) Other Benefits. The Contractor has no claim against the Company under this agreement or otherwise for vacation pay, sick leave, retirement benefits, social security, worker's compensation, health or disability benefits, unemployment insurance benefits, or employee benefits of any kind.


  • (a) Independent Contractor Status.
    • (i) The relationship of the parties under this agreement is one of independent contractors, and no joint venture, partnership, agency, employer-employee, or similar relationship is created in or by this agreement. Neither party may assume or create obligations on the other party's behalf, and neither party may take any action that creates the appearance of such authority.
    • (ii) The Contractor has the sole right to control and direct the means, details, manner, and method by which the Services will be performed, and the right to perform the Services at any time, place, or location. The Contractor or the Contractor's staff shall perform the Services, and the Company is not required to hire, supervise, or pay any assistants to help the Contractor perform those Services. The Contractor shall provide insurance coverage for itself and its staff.
  • (b) Inventions Retained and Licensed. Attached as Exhibit B to this agreement is a list of all intellectual property that the Contractor made before its agreement with the Company (the "Prior Inventions") that belong to the Contractor, that relate to the Company's proposed business, products, or research and development, and that are not assigned to the Company under this agreement. If no list is attached, the Contractor represents that there are no Prior Inventions. If disclosure of a Prior Invention would cause the Contractor to violate an existing confidentiality agreement, the Contractor may not list the Prior Invention in Exhibit B but shall instead provide the name of the invention, a list of the party or parties to which it belongs, and an explanation of why full disclosure was not given. A space is provided in Exhibit B for this purpose. If in the course providing services to the Company the Contractor incorporates into a Company product, process, or machine a Prior Invention owned by the Contractor or in which the Contractor has an interest, the Company will be granted and have a nonexclusive, royalty-free, irrevocable, perpetual, worldwide license to make, have made, modify, use, and sell that Prior Invention as part of or in connection with that product, process, or machine.
  • (c) Company Inventions. The Contractor has no right or interest in any work or product resulting from the Services the Contractor performs for the Company, or any of the documents, reports, or other materials the Contractor creates in connection with those Services (collectively, the "Company Inventions"), and has no right to or interest in any copyright to the Company Inventions. The Company Inventions have been specially commissioned or ordered by the Company as "works made-for-hire," as that term is defined in the United States Copyright Act, and the Company is therefore the author and owner of all copyrights in the Company Inventions.
  • (d) Disclosure of Company Inventions. The Contractor shall promptly disclose in writing to the Company all Company Inventions that the Contractor has authored, made, conceived, or first actually reduced to practice, alone or jointly with others.
  • (e) Assignment of Company Inventions. If the Company Inventions or any parts of those are deemed not to have been works made-for-hire, the Contractor hereby assigns to the Company all interest the Contractor may have in the Company Inventions, including all copyrights, publishing rights, rights to use, reproduce, and otherwise exploit the Company Inventions in all formats or media and all channels, whether now known or created in the future.
  • (f) Patent and Copyright Registrations. The Contractor shall assist the Company or its designee, at the Company's expense, to secure the Company's rights in the Company Inventions and any copyrights, patents, mask work rights, or other intellectual property rights relating to the Company Inventions in all countries, including by disclosing to the Company all pertinent information and data with respect to those, by signing all applications, specifications, oaths, assignments, and other instruments that the Company deems necessary to apply for and obtain such rights and to assign and convey to the Company, its successors, assigns, and nominees the exclusive interest in the Company Inventions, and any copyrights, patents, mask work rights, or other intellectual property rights relating to those. When it is in the Contractor's power to do so, the Contractor shall sign or cause to be signed these instruments or papers after the termination or expiration of this agreement. If the Contractor provides assistance after the termination or expiration of this agreement at the Company's request, the Company shall pay the Contractor a reasonable rate for any time spent. If because of the Contractor's mental or physical incapacity or for any other reason the Company cannot secure a signature to apply for or pursue any application of any United States or foreign patents or copyright registrations covering Company Inventions or original works of authorship assigned to the Company, the Contractor hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as the Contractor's agents and attorneys in fact, to act for and on behalf of the Contractor to sign and file any those applications and to do all other lawfully permitted acts to further the prosecution and issuance of patent or copyright registrations with the same legal force and effect as if they had been signed by the Contractor.


The Contractor may use, reproduce, and distribute the Company's service marks, trademarks, and trade names (if any) (collectively, the "Company Marks") in connection with the performance of the Services. Any goodwill received from this use will accrue to the Company, which will remain the sole owner of the Company Marks. The Contractor may not engage in activities or commit acts, directly or indirectly, that may contest, dispute, or otherwise impair the Company's interest in the Company Marks. The Contractor may not cause diminishment of value of the Company Marks through any act or representation. The Contractor may not apply for, acquire, or claim any interest in any Company Marks, or others that may be confusingly similar to any of them, through advertising or otherwise. At the expiration or earlier termination of this agreement, the Contractor will have no further right to use the Company Marks, unless the Company provides written approval for each such use.


  • (a) Confidentiality. During the Term, the Contractor may have access to or receive certain information of or about the Company that the Company designates as confidential or that, under the circumstances surrounding disclosure, ought to be treated as confidential by the Contractor ("Confidential Information"). Confidential Information includes information relating to the Company or its current or proposed business, financial statements, budgets and projections, customer identifying information, potential and intended customers, employers, products, computer programs, specifications, manuals, software, analyses, strategies, marketing plans, business plans, and other confidential information, provided orally, in writing, by drawings, or by any other media. The Contractor will treat the Confidential Information as confidential and will not disclose it to any third party or use it for any purpose but to fulfill its obligations in this agreement. In addition, the Contractor shall use due care and diligence to prevent the unauthorized use or disclosure of such information.
  • (b) Exceptions. The obligations and restrictions in subsection (a) do not apply to that part of the Confidential Information:
    • (i) was or becomes publically available other than as a result of a disclosure by the Contractor in violation of this agreement;
    • (ii) was or becomes available to the Contractor on a nonconfidential basis before its disclosure to the Contractor by the Company, but only if:
      • A. the source of such information is not bound by a confidentiality agreement with the Company or is
      • not otherwise prohibited from transmitting the information to the Contractor by a contractual, legal,
      • fiduciary, or other obligation; and
      • B. the Contractor provides the Company with written notice of its prior possession either (I) before the
      • effective date of this agreement or (II) if the Contractor later becomes aware (through disclosure to the
      • Contractor) of any aspect of the Confidential Information as to which the Contractor had prior
      • possession, promptly on the Contractor so becoming aware;
    • (iii) is requested or legally compelled (by oral questions, interrogatories, requests for information or documents, subpoena, civil or criminal investigative demand, or similar processes), or is required by a regulatory body, to be disclosed. However, the Contractor shall:
      • A. provide the Company with prompt notice of these requests or requirements before making a
      • disclosure so that the Company may seek an appropriate protective order or other appropriate
      • remedy; and
      • B. provide reasonable assistance to the Company in obtaining any protective order. If a protective
      • order or other remedy is not obtained or the Company grants a waiver under this agreement, the
      • Contractor may furnish that portion (and only that portion) of the Confidential Information that, in the
      • written opinion of counsel reasonably acceptable to the Company, the Contractor is legally compelled
      • or otherwise required to disclose. However, the Contractor shall make reasonable efforts to obtain
      • reliable assurance that confidential treatment will be accorded any part of the Confidential Information
      • disclosed in this way; or
      • C. was developed by the Contractor independently without breach of this agreement.
  • (c) Remedy. Money damages may not be a sufficient remedy for any breach of this section by the Contractor and, in addition to all other remedies, the Company may seek (and may be entitled to) as a result of such breach, specific performance and injunctive or other equitable relief as a remedy.


The Contractor shall report to or such other officer or employee as may be designated by the Company. The Contractor shall provide a written summary report to the Company on its progress. Reports shall consist of .


During the Term, the Contractor is free to engage in other independent contracting activities, except that the Contractor may not accept work, enter into contracts, or accept obligations inconsistent or incompatible with the Contractor's obligations or the scope of Services to be rendered for the Company under this agreement.


Within days of the expiration or earlier termination of this agreement, the Contractor shall return to the Company, retaining no copies or notes, all Company products samples, models, property, and documents relating to the Company's business including reports, abstracts, lists, correspondence, information, computer files, computer disks, and other materials and copies of those materials obtained by the Contractor during and in connection with its work with the Company. All files, records, documents, blueprints, specifications, information, letters, notes, media lists, original artwork or creative work, notebooks, and similar items relating to the Company's business, whether prepared by the Contractor or by others, remain the Company's exclusive property.


  • (a) Of Company by Contractor. At all times after the effective date of this agreement, the Contractor shall indemnify the Company and its subcontractors, officers, members, managers, employees, owners, sublicensees, affiliates, subsidiaries, successors, and assigns (collectively, the "Company Indemnitees") from all damages, liabilities, expenses, claims, or judgments (including interest, penalties, reasonable attorneys' fees, accounting fees, and expert witness fees) (collectively, the "Claims") that any Company Indemnitee may incur and that arise from:
    • (i) the Contractor's negligence or willful misconduct arising from the Contractor's carrying out of its obligations under this agreement;
    • (ii) the Contractor's breach of any of its obligations or representations under this agreement; or
    • (iii) the Contractor's breach of its express representation that it is an independent contractor and in compliance with all applicable laws related to work as an independent contractor. If a regulatory body or court of competent jurisdiction finds that the Contractor is not an independent contractor or is not in compliance with applicable laws related to work as an independent contractor, based on the Contractor's own actions, the Contractor will assume full responsibility and liability for all taxes, assessments, and penalties imposed against the Contractor or the Company resulting from that contrary interpretation, including taxes, assessments, and penalties that would have been deducted from the Contractor's earnings if the Contractor had been on the Company's payroll and employed as a Company employee.
  • (b) Of Contractor by Company. At all times after the effective date of this agreement, the Company shall indemnify the Contractor and its officers, members, managers, employees, agents, contractors, sublicensees, affiliates, subsidiaries, successors, and assigns (collectively, the "Contractor Indemnitees") from all Claims that the Contractor Indemnitees may incur arising from:
    • (i) the Company's operation of its business;
    • (ii) the Company's breach or alleged breach of, or its failure or alleged failure to perform under, any agreement to which it is a party; or
    • (iii) the Company's breach of any of its obligations or representations under this agreement. However, the Company is not obligated to indemnify the Contractor if any of these Claims result from the Contractor's own actions or inactions.


A party will not be considered in breach of or in default because of, and will not be liable to the other party for, any delay or failure to perform its obligations under this agreement by reason of fire, earthquake, flood, explosion, strike, riot, war, terrorism, or similar event beyond that party's reasonable control (each a "Force Majeure Event"). However, if a Force Majeure Event occurs, the affected party shall, as soon as practicable:

  • (a) notify the other party of the Force Majeure Event and its impact on performance under this agreement; and
  • (b) use reasonable efforts to resolve any issues resulting from the Force Majeure Event and perform its obligations under this agreement.


  • (a) Choice of Law. The laws of the state of govern this agreement (without giving effect to its conflicts of law principles).
  • (b) Choice of Forum. Both parties consent to the personal jurisdiction of the state and federal courts in County, .
  • (c) Attorneys' Fees. If either party employs attorneys to enforce any rights arising out of or relating to this agreement, the losing party shall reimburse the prevailing party for its reasonable attorneys' fees.


No amendment to this agreement will be effective unless it is in writing and signed by a party.


  • (a) No Assignment. Neither party may assign any of its rights under this agreement, except with the prior written consent of the other party. All voluntary assignments of rights are limited by this subsection.
  • (b) No Delegation. Neither party may delegate any performance under this agreement, except with the prior written consent of the other party.
  • (c) Enforceability of an Assignment or Delegation. If a purported assignment or purported delegation is made in violation of this section, it is void.


  • (a) Counterparts. The parties may execute this agreement in any number of counterparts, each of which is an original but all of which constitute one and the same instrument.
  • (b) Electronic Signatures. This agreement, agreements ancillary to this agreement, and related documents entered into in connection with this agreement are signed when a party's signature is delivered by facsimile, email, or other electronic medium. These signatures must be treated in all respects as having the same force and effect as original signatures.


If any one or more of the provisions contained in this agreement is, for any reason, held to be invalid, illegal, or unenforceable in any respect, that invalidity, illegality, or unenforceability will not affect any other provisions of this agreement, but this agreement will be construed as if those invalid, illegal, or unenforceable provisions had never been contained in it, unless the deletion of those provisions would result in such a material change so as to cause completion of the transactions contemplated by this agreement to be unreasonable.


  • (a) Writing; Permitted Delivery Methods. Each party giving or making any notice, request, demand, or other communication required or permitted by this agreement shall give that notice in writing and use one of the following types of delivery, each of which is a writing for purposes of this agreement: personal delivery, mail (registered or certified mail, postage prepaid, return-receipt requested), nationally recognized overnight courier (fees prepaid), or email.
  • (b) Addresses. A party shall address notices under this section to a party at the following addresses:
  • If to the Company:
  • /
  • ,
  • If to the Contractor:
  • /
  • ,
  • (c) Effectiveness. A notice is effective only if the party giving notice complies with subsections (a) and (b) and if the recipient receives the notice.


No waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this agreement will be effective unless it is in writing and signed by the party waiving the breach, failure, right, or remedy. No waiver of any breach, failure, right, or remedy will be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, and no waiver will constitute a continuing waiver, unless the writing so specifies.


This agreement constitutes the final agreement of the parties. It is the complete and exclusive expression of the parties' agreement about the subject matter of this agreement. All prior and contemporaneous communications, negotiations, and agreements between the parties relating to the subject matter of this agreement are expressly merged into and superseded by this agreement. The provisions of this agreement may not be explained, supplemented, or qualified by evidence of trade usage or a prior course of dealings. Neither party was induced to enter this agreement by, and neither party is relying on, any statement, representation, warranty, or agreement of the other party except those set forth expressly in this agreement. Except as set forth expressly in this agreement, there are no conditions precedent to this agreement's effectiveness.


The descriptive headings of the sections and subsections of this agreement are for convenience only, and do not affect this agreement's construction or interpretation.


This agreement will become effective when all parties have signed it. The date this agreement is signed by the last party to sign it (as indicated by the date associated with that party's signature) will be deemed the date of this agreement.


Each party shall use all reasonable efforts to take, or cause to be taken, all actions necessary or desirable to consummate and make effective the transactions this agreement contemplates or to evidence or carry out the intent and purposes of this agreement.


Each party is signing this agreement on the date stated opposite that party's signature.






The Contractor shall perform the following services for the Company: .

The parties agree to the following additional specifications about the services to be provided: . The parties agree that specifications about the services will be provided at a later date.


The Company shall pay the Contractor a single, lump-sum fee of $ on . after .

The Company shall pay the Contractor a fee of $, payable in installments.

  • (i): The first installment of $ is due on .
  • (ii): The second installment of $ is due on .
  • (iii): The third installment of $ is due on .
  • (iv): The fourth installment of $ is due on .
  • (v): The fifth installment of $ is due on .
  • (i): The first installment of $ is due after .
  • (ii): The second installment of $ is due after .
  • (iii): The third installment of $ is due after .
  • (iv): The fourth installment of $ is due after .
  • (ii): The fifth installment of $ is due after .

The Company shall pay the Contractor according to the following schedule:

  • A. The first installment of $ is due when is completed.
  • B. The second installment of $ is due when is completed.
  • C. The third installment of $ is due when is completed.
  • D. The fourth installment of $ is due when is completed.
  • E. The fifth installment of $ is due when is completed.
  • A. The first installment of $ is due when is completed.
  • B. The second installment of $ is due when is completed.
  • C. The third installment of $ is due when is completed.
  • D. The fourth installment of $ is due when is completed.
  • E. The fifth installment of $ is due when is completed.


Each party is signing this Exhibit A on the date stated opposite that party's signature.




  • 1. Except as listed in section 2 below, the following is a complete list of all Prior Inventions that were made, conceived, or first reduced to practice by the Contractor, alone or jointly with others, before its agreement with the Company:
add border
TitleDateIdentifying Number or Brief Description
The Contractor has no inventions or improvements to list


I have attached _____ additional sheets to this Exhibit B.

  • 2. Because of an existing confidentiality agreement and the duties of confidentiality that the Contractor owes to the parties listed below, the Contractor cannot complete the disclosure in section 1 above with respect to the inventions or improvements listed generally below:
add border
Invention or ImprovementParty NamesRelationship
I have attached _____ additional sheets to this Exhibit B.


Date: __________________________________

By: ____________________________________



Free Independent Contractor Agreement Template

Clearly define project terms and responsibilities when hiring contractors for your company. An independent contract agreement helps to lay out work schedules, payment terms, and other essential details.

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Independent contractor agreement: How-to guide

In today's dynamic workforce, companies often hire independent contractors for specialized projects or short-term projects. However, without a clear legal foundation, such arrangements might lead to confusion and disagreements. An independent contractor agreement is a valuable instrument for outlining the conditions of engagement between an employing firm and an independent contractor. 

This guide will give a thorough walkthrough of independent contractor agreements, focusing on their importance, key elements, drafting considerations, and legal implications.

What is an independent contractor agreement?

Independent contractor agreements are legally binding documents that lay out the terms and conditions of a working relationship between a hiring firm (client) and an independent contractor.

Independent contractors, as opposed to employees, are self-employed and must manage their own taxes, insurance, and work-related expenses. The independent contractor agreement clarifies the nature of the partnership, establishes responsibilities, and reduces potential risks for both parties.

Why do you need an independent contractor agreement?

An independent contractor agreement is a written agreement and is important for several reasons:

Clarity and expectations

An independent contractor agreement specifies the scope of work, deliverables, and expectations for both parties, reducing any misunderstandings or disagreements.

Legal protection

It protects both the hiring firm and the contractor by articulating their rights, commitments, and liabilities. This reduces the risks connected with incorrect categorization disputes and subsequent legal challenges.


It helps in differentiating between independent contractors and employees, guaranteeing compliance with labor laws and regulations.

Risk mitigation

It helps to mitigate multiple risks such as non-payment, violation of contract, or conflicts over project deliverables by setting parameters for compensation, payment schedule, termination, and dispute resolution.


It enables parties to tailor the entire agreement based on their own needs and circumstances, ensuring that the contractual provisions fit the engagement's unique requirements.

When do you need an independent contractor agreement?

Independent contractor agreements are required in numerous instances when firms hire an independent contractor for specialized services or projects. Some such scenarios include:

  • Hiring a freelancer or an independent contractor for specialized jobs or projects that require unique skills.
  • Engaging consultants or professionals for short-term projects that do not require full-time workers.

Outsourcing services to independent specialists to improve corporate skills or address short-term demands.

How to draft an effective independent contractor agreement?

To guarantee clarity and effectiveness, successful independent contractor agreements must be carefully drafted, taking into account crucial components. The following is a detailed breakdown of essential elements to include.

General information about the parties

This section would include full legal names and addresses for both the hiring firm and the independent contractor or the service provider, and the contact details for communication purposes.

Scope of work and deliverables

It’s essential to include a detailed description of the services to be performed by the independent contractor or the other party. Specific deliverables, milestones, and deadlines should be included as well. 

Compensation and payment terms

Then comes payments. Clearly outline the compensation structure, including rates, fees, and payment schedule. It’s better to include the method of payment and invoicing procedures also.

Reimbursement policies

This section must outline the provisions for reimbursement of expenses incurred during the performance of services. This may include submitting documents for expense claims.

Employment benefits and liability exclusion

It’s important to specify that the independent contractor is not entitled to leaves or any other employee benefits provided by the hiring company, like bonuses. This would exclude liability for injuries or damages arising from the contractor's work.

Termination clause

This section needs to outline the conditions under which either party can terminate the agreement, the notice period required for termination and any associated penalties.

Indemnification clause

The indemnification clause in an independent contractor agreement states that the contractor will compensate the hiring company for any losses or damages incurred as a result of the contractor's actions or failures to act and will be solely responsible, thereby shielding the hiring company from financial liabilities caused by the contractor's conduct.

Dispute resolution

This means employing mediation, arbitration, or litigation to resolve disputes between the hiring firm and the contractor.

Compliance with laws

The contractor shall follow all applicable laws, rules, and industry standards while carrying out their responsibilities under the agreement.


If any element of the agreement is found unenforceable or unlawful, the other clauses will continue to apply, maintaining the contract's overall legitimacy.

Governing law

Independent contractor agreements indicate which jurisdiction's laws shall control its interpretation and enforcement, which clarifies legal issues.


When one party waives some rights or remedies, it does not waive any other rights or remedies available to them under the agreement.

Liability insurance

The contractor must carry enough liability insurance coverage to guard against potential liabilities resulting from their work.

Professional capacity and warranties

The contractor validates their professional credentials and guarantees the quality and accuracy of their services.

Intellectual property protection

The agreement includes ownership and usage rights to intellectual property developed during the contract time and frequently includes confidentiality restrictions to protect proprietary information.

Confidentiality (NDA Clause)

The contractor must maintain confidentiality about sensitive information supplied throughout the engagement to maintain the hiring company's trade secrets.

Non-compete agreement

This limits the contractor's capacity to participate in competitive activities that might harm the hiring company's interests both during and after the agreement's term.

In today's digital age, you can find free templates for independent contractor agreements. Reputable sources like LegalZoom offer an independent contractor agreement template that adheres to professional requirements and can be easily adapted to fit unique circumstances.

US laws governing independent contractor agreements

In the United States, various laws and regulations control the independent contractor relationship with employers. Businesses must understand and follow this applicable law to avoid potential liability and fines. Some relevant statutes are:

Internal Revenue Service (IRS) regulations

The Internal Revenue Service (IRS) provides rules for assessing whether workers are employees or independent contractors. The degree of control, independence, and integration into the hiring company's activities are all factors evaluated when considering the worker's position.

State-specific labor laws

Many states have additional labor laws and regulations that govern the relationship between hiring entities and independent contractors. These laws may vary in terms of worker classification, wage and hour requirements, and other employment-related provisions. These provide criteria for classifying workers as independent contractors and impose penalties for misclassification. To list some of them:

Negotiating and customizing the independent contractor agreement

The provisions of independent contractor agreements must be carefully negotiated while keeping both parties' interests and concerns in mind. While standard free independent contractor agreement templates serve as a starting point, it is important to tailor the agreement to the individual demands and conditions of the partnership. Flexibility in negotiating conditions while keeping legal protections in mind is critical to obtaining a mutually advantageous arrangement.

Additional steps for hiring independent contractors

In addition to signing the independent contractor agreement, employing organizations must meet certain administrative procedures to assure tax and regulatory compliance:

  • Filling the required tax papers, such as Form 1099-NEC, to record payments received by independent contractors.
  • Keeping accurate records of payments, expenses, and other relevant information for income tax reporting reasons.
  • Ensure compliance with local rules and regulations regulating independent contractor arrangements, such as labor categorization and tax withholding.

Termination of an independent contractor agreement

When it comes to the termination of this agreement, independent contractor agreements may be terminated for a variety of reasons, including the completion of the project, a breach of contract, or mutual consent between the parties. It is critical to fulfill the termination conditions mentioned in the agreement and provide sufficient days' written notice to the affected party. Terminating the agreement legally and ethically helps to preserve commercial ties while reducing the danger of disagreements or legal action.

Renewing an independent contractor agreement

An independent contractor agreement must be renewed or updated to reflect changes in the project scope, terms, or other relevant circumstances. When renewing the agreement, consider the following points.

  • Reviewing and modifying terminology to meet current business demands and legal constraints.
  • Communicate freely with the independent contractor about any concerns or recommended modifications.
  • Ensure that all parties understand and agree to the updated conditions before finishing the renewal.


To summarize, an independent contractor agreement is an essential tool for setting clear expectations, safeguarding legal rights, and cultivating effective working relationships between employing organizations and an independent contractor. Businesses may reduce risks and assure compliance with relevant laws by addressing critical components such as scope of employment, pay, termination, and legal requirements. 

For organizations looking to hire an independent contractor, investing time and money in developing detailed and legally sound agreements could provide invaluable protection and peace of mind. Companies that follow best practices and keep open communication with contractors may form solid relationships and achieve mutual success in their undertakings.

Frequently asked questions

What does an independent contractor agreement mean? 

Bringing an independent contractor on board for a specific project or duration? Ensure clarity and protection with an independent contractor agreement. Define work expectations, payment terms, and more to align both parties before project commencement. 

Here's the information you'll need to complete your independent contractor agreement:

  • Sender details: Provide your company’s contact information
  • Recipient details: Include the contractor’s name and contact information
  • Duties and expectations: Outline the contractor’s responsibilities and project completion criteria
  • Dates and payment: Specify payment terms and deadlines for the project

How do I write an independent contractor agreement?

To craft an independent contractor agreement, clearly outline work expectations, payment terms, and legal protections. Utilize templates or seek legal guidance to ensure completeness and enforceability.

How can I work as an independent contractor in the USA?

To work as an independent contractor in the USA, follow these steps: 

1. Determine your niche or expertise.

2. Register your business and obtain the necessary licenses or permits.

3. Network and market yourself to potential clients.

4. Negotiate contracts and agreements that clearly define the scope of work, compensation, and terms.

5. Deliver high-quality services, maintain professional relationships, and fulfill contractual obligations.

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