Independent Cleaning Contractor Agreements Explained

Key Takeaways

• Independent cleaning contractors are self-employed individuals offering cleaning services without employee benefits.
• A strong agreement defines scope of services, payment, termination, and liability protections.
• Misclassification of contractors as employees can lead to IRS penalties.
• Contracts should address tools, supplies, insurance, and tax responsibilities.
• Federal and state-specific laws must be observed when structuring agreements.
• You can find a lawyer on UpCounsel to assist with drafting or reviewing your agreement.

An independent contract agreement for cleaning services is a written contract between a cleaning service provider and a client which outlines the terms of a specific project or task. Independent contract agreements are used when a business or service provider is hired to complete a task on a short-term basis.

Understanding Independent Contractor Agreements

Like any contract, an independent contract agreement is a written agreement between two parties. Either an individual or business can hire an independent cleaning contractor to provide services for a short-term task. If you are hiring an employee on a long-term basis, you must use an employment agreement instead of an independent contractor agreement.

Unlike an employment agreement, independent contractor agreements must clearly state why the contractor is being hired and why they are not an employee for tax and legal purposes. The document must address these key elements:

• The hiring person or company in need of cleaning services
• The contractor providing the services for a cleaning task or project
• The type of cleaning services being provided
• How much compensation the contractor will receive for completed services
• An effective date when the agreement and the job begin
• Whether the hiring party will terminate the relationship at will and how many days written notice is required before termination
• Fringe benefits that don't involve the hiring company's vacation pay, health coverage, sick pay, or unemployment benefits
• Any assistants involved that the contractor may hire, understanding that the contractor alone is responsible for assistant expenses like Medicare and Social Security

In addition to these key elements, an independent contractor agreement must also cover the following legal details:

• Assignment: both parties cannot transfer the job or the right to get paid to another party without written permission
• Binding effect: the contract is still valid if another person takes over the contractor or hiring company
• Entire agreement: the current agreement invalidates any prior agreements
• Expenses: each party is responsible for their own expenses unless the agreement outlines preapproved costs and parties submit invoices
• Governing law: certain state laws apply
• Indemnification: if problems occur, the contractor is held responsible and must defend the customer from liability
• Insurance: the hiring party's insurance policy cannot cover the contractor
• Representations: all parties have the authority and power to enter into the agreement
• Severability: is any part of the contract is invalid, the rest of the contract is still legally binding
• Waiver: any release of a right or claim must be submitted in writing
• Warranties: the contractor must promise that they have all the necessary permits, licenses, and registrations required for the project

An independent contractor agreement may also be referred to as a:

• Contractor agreement
• Client/Service freelancer agreement
• Freelancer agreement
• Company contractor agreement
• Independent consulting agreement
• Freelancer contractor agreement

Essential Clauses for Cleaning Contractor Agreements

When creating an agreement for an independent cleaning contractor, it’s crucial to include provisions that protect both parties and clearly define expectations. These may include:

• Detailed Scope of Work: Define whether services include residential, commercial, post-construction, deep cleaning, or routine maintenance. Specific rooms, tasks (e.g., dusting, vacuuming), and frequency should be itemized.
• Supplies and Equipment: Specify who provides cleaning supplies and tools. Often, independent contractors use their own, but this must be explicitly stated.
• Payment Terms: Outline the rate (hourly, per job, or flat fee), frequency (weekly, biweekly, monthly), and accepted methods of payment.
• Schedule and Access: Clarify expected work hours, client access to property (e.g., key policy), and any required advance notice for changes.
• Confidentiality and Conduct: Protect the client’s private or sensitive information by including a confidentiality clause. Set behavioral standards to reflect the professionalism of the contractor.
• Insurance and Bonding: Indicate whether the independent cleaning contractor must maintain liability insurance or bonding to cover property damage or theft.
• Licensing and Permits: Confirm that the contractor holds all required local or state permits, especially if operating under a business name.
• Dispute Resolution: Include procedures for resolving disputes—such as mediation or arbitration—to avoid litigation when possible.

Contractors vs. Employees: Who Should You Hire?

Independent contractors are necessary when you need to hire someone to perform a specific task over a short-term period. An independent contractor will have a certain set of skills that go beyond what regular employees can offer, plus they will own their own equipment needed to complete the project. As such, a contractor will have more autonomy or control over how a project gets done.

Essentially, an employee works for an employer while an independent contractor is self-employed. A contractor may work on a seasonal or short-term basis with a clear task or project in mind. It's up to the contractor how the project is executed and completed, and the hiring party will evaluate the contractor on the results.

Since an independent contractor isn't covered by the hiring party, they are responsible for their own on-the-job injuries. As such, contractors must purchase their own work insurance and health coverage. They are also responsible for paying their own taxes. A contractor can negotiate that they own the service or product being created, while an employee does not own any intellectual property they create for the company that hires them.

Some of the most common independent contractor situations include:

• Cleaning a home or commercial building
• Repainting a home or business
• Providing landscaping services
• Pet sitting
• Overseeing home improvement tasks
• Writing conference reports
• Designed websites for business clients
• Coding software for a specific project
• Providing photography, videography, floral, or catering services for events

State Laws and Local Regulations

While federal standards are key, state-specific labor laws may impose additional rules for hiring independent cleaning contractors. For example, some states like California use the stricter “ABC Test” under Assembly Bill 5 (AB5), requiring the contractor to:

A. Be free from the control and direction of the hiring entityB. Perform work outside the usual course of the hiring entity’s businessC. Be engaged in an independently established trade or occupation

Failing any part of the ABC Test may reclassify a contractor as an employee under state law—even if they meet IRS criteria. Always consult local regulations and consider having an attorney review your agreement to ensure full compliance.

Risks and Limitations of Independent Contractors

Though beneficial, relying on independent cleaning contractors does come with potential drawbacks:

• Less Control: You cannot mandate how, when, or with what methods the contractor performs tasks.
• Limited Loyalty: Contractors may serve multiple clients and may not be available for urgent needs or long-term consistency.
• Legal Risks: Misclassification, inadequate contracts, or failure to verify insurance and licensure can expose your business to legal issues.
• Reputational Impact: If a contractor fails to meet standards or damages property, your business reputation could suffer.

A comprehensive independent contractor agreement can help mitigate many of these risks.

Benefits of Hiring Independent Cleaning Contractors

Many businesses choose to hire independent cleaning contractors due to the flexibility and cost-efficiency they offer. Key advantages include:

• Reduced Overhead: Employers do not pay Social Security, Medicare, unemployment tax, or offer benefits like health insurance or paid leave.
• Specialization: Independent cleaning contractors often bring expertise and equipment for specific cleaning tasks (e.g., floor buffing, window washing).
• Scalability: Contractors can be hired on an as-needed basis, which is ideal for businesses with fluctuating cleaning demands.
• Limited Liability: Properly structured agreements can reduce employer liability, provided the contractor carries insurance.

While cost-effective, contractors require careful vetting, as businesses cannot exert the same level of control over how work is performed.

IRS Classification and Legal Compliance

One of the most significant legal concerns when hiring an independent cleaning contractor is proper classification. Misclassifying an employee as an independent contractor can lead to serious tax consequences. The IRS uses three main criteria to assess classification:

1. Behavioral Control: Does the hiring party control how the worker performs tasks (e.g., scheduling, training, specific methods)?
2. Financial Control: Who provides tools and determines how the worker is paid? Contractors typically control their earnings and expenses.
3. Relationship Type: Written contracts, benefits, the permanency of the relationship, and whether the work performed is integral to the business all matter.

Misclassification may result in back taxes, penalties, and liability for unpaid benefits. To avoid this, ensure your agreement reflects the contractor’s autonomy and aligns with federal guidelines.

Frequently Asked Questions

1. Can I hire an independent cleaning contractor without a written agreement? While it's possible, it's not advisable. A written agreement protects both parties and helps define the relationship legally and financially.

2. Who provides supplies in an independent cleaning contract? Usually, the contractor provides their own supplies and tools, but this should be explicitly stated in the contract.

3. What are the tax responsibilities of an independent cleaning contractor? Contractors are responsible for paying their own income taxes, self-employment taxes, and handling their own deductions. The hiring party should issue a Form 1099-NEC if payments exceed $600 annually.

4. What happens if I misclassify a cleaner as an independent contractor? You may be liable for back taxes, penalties, interest, and retroactive benefits. Proper classification is essential.

5. Are cleaning businesses subject to state-specific rules for contractors? Yes. States like California, New Jersey, and Massachusetts have strict rules that may affect contractor classification. Always verify local laws or consult an attorney.

If you need help drawing up an independent contractor agreement for cleaning services, post your job on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.