How a Financial Services Business Hired a Lawyer to Review an Independent Contractor Agreement in Washington (2024)

This is an important distinction and has both financial and legal implications. Independent contractors do not get overtime, benefits or workers compensation and thus are generally cheaper to hire and easier to fire than an employee who does get these benefits. The IRS and Department of Labor use multi-factor tests examining control, financial aspects, and the relationship's nature—key indicators include whether you provide tools/equipment, set specific hours, integrate the worker into your business operations, or maintain an ongoing relationship versus project-based work. Given the complexity and high stakes of worker classification in the tech industry, where the line between employee and contractor is frequently blurred, I strongly recommend consulting with an employment attorney who can review your specific situation and help establish proper classification procedures. Additionally, consider having workers sign clear agreements that reflect their true working relationship and maintain documentation supporting your classification decisions.

Hello! My name is Damien Bosco. My law office is in Long Island City, across from Manhattan. Some key provisions of an independent contract agreement include the scope of work and the payment terms. An important provision discusses intellectual property rights. Define who owns any work product, intellectual property, or inventions created during the contract. Consider whether you want to retain rights to your pre-existing work or methodologies. There are other provisions also such as Non-Compete and Non-Solicitation Clauses. You may want an attorney to review your full Agreement to suggest additions or edits. Feel free to reach out with any more questions!