With the current uncertain business climate and social distancing regulations due to the COVID-19 pandemic, contract workers have become more commonplace in the corporate landscape. Although they serve many beneficial purposes, engaging contract work often comes with unique considerations that are specific to Dallas, Texas. These legal issues must be sorted out prior to signing a contract.

While engaging contract workers in Dallas, Texas, is certainly possible, it is important to understand the underlying criteria for such a decision. The following Frequently Asked Questions (FAQs) are the most important considerations for corporate businesses in Dallas, Texas to bear in mind when negotiating contracts with freelancers or contract workers.

What is the Difference Between a Freelancer and a Contract Worker?

The primary distinction between a freelancer and a contractor lies in the nature of service they provide. Freelancers typically provide services on a per-project basis and are often not tied to a single employer. They typically work as independent professionals and usually do not require the same amount of dedication and commitment as a full-time employee. On the other hand, contract workers usually provide services on an on-going basis and are more closely aligned with a single employer.

What Sort of Contracts Must be Signed in Dallas, Texas?

The most important factor to consider when signing a contract with a freelancer or contract worker in Dallas, Texas is whether the agreement is valid under local laws. All contracts created in Dallas, Texas must adhere to state law in order to be legally enforceable, and any contractual provisions that are contrary to that law will be considered void. It is important for companies to understand their rights and responsibilities prior to signing a contract.

Are Austin, Texas Contracts Valid in Dallas, Texas?

The contract laws in Austin and Dallas, Texas are similar, but there are also certain differences that could affect the enforceability of an agreement in either city. If the contract is based in Austin, Texas, it is important to ensure that any arrangements are compliant with both Austin and Dallas, Texas laws.

What Tax Implications Should Companies Consider Before Entering Into a Contract in Dallas, Texas?

Prior to signing a contract with a freelancer or contract worker in Dallas, Texas, it is important to understand the tax implications of the agreement. Every agreement should include a provision outlining who is responsible for withholding taxes and submitting the payments to the appropriate state and local tax agencies. Additionally, each contract should specify who is responsible for providing and maintaining employment-related benefits, such as health insurance and retirement plans.

Is Payment for Services Required Upfront?

The contractual agreement should detail any provisions regarding payment, including whether the freelancer or contract worker receives partial or full payment up-front, or whether payments are made on an hourly basis. Payment terms may also include provisions for late payment fees and interest in the event of delayed payment.

What Should the Contract Include Regarding Dispute Resolution?

Prior to signing a contract with a freelancer or contract worker in Dallas, Texas, businesses should ensure that the agreement includes a dispute resolution procedure. Such a provision outlines the process for resolving any differences that may arise between the contracting parties. The dispute resolution process should also specify the jurisdiction in which disputes will be adjudicated, and should include a statement of the laws applicable to the contract.

What is the Scope of Work Reflected in the Contract?

When entering into a contract with a freelancer or contract worker, it is important to define the scope of work that is expected from the contracting party. The agreement should specify the services to be provided and the timeline for those services, and should also detail any additional provisions that may be associated with those requirements.


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