If you 1099 could they make you pay for lunch

While the basic structure and framework of a consulting agreement and an independent contractor agreement are very similar, the primary difference is in what services the consultant provides. In a consulting agreement, the consultant is providing their advice for a fee. The guidance will be in the field of their expertise and, usually, includes evaluating an aspect of your business and making suggestions regarding what to do next. An independent contractor, on the other hand, will actually perform the work. The difference is not always a bright line and will vary depending on the circumstances. In some cases, a service provider will evaluate, recommend, and then perform. In that case, they are acting as a consultant first and then an independent contractor. It is also important to properly consider the differences between an independent contractor and an employee.

This is a complicated question and you should get help drafting a solid contractor on the front end to help safeguard your business against numerous liabilities. Examples include contractor negligence, subpar work, IP ownership, confidentiality and many more. Let me know if you have any other questions!

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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.

The terms that you write in an independent contractor agreement should, first and foremost, protect you/your business and give you the advantage in the relationship, if possible. While some such contracts may have an end date, that's not mandatory; but be sure to give yourself/your business the right to terminate the contract when you want to, without cause. Leave it to the contractor to negotiate better terms than you propose, on behalf of the contractor - that is not your job. I recommend that each of you use your own attorney to review the agreement prior to signing. And, by the way, ContractsCounsel.com has numerous documents available for purchase, and it's very likely they offer a boilerplate of this type of contract, vetted by WA State attorneys.