Understanding Your Independent Contractor Agreement in New York
Do you have a freelancer, contractor, or independent consultant working with you to get the job done4 min read
Do you have a freelancer, contractor, or independent consultant working with you to get the job done? A well-constructed independent contractor agreement will be a must when working with an independent contractor. As any business owner should understand, a contract is an essential document used to protect both parties involved. It should clearly describe the scope of the project or service, the timeline for completion, payment terms, and any additional terms and regulations.
Organizing an independent contractor agreement requires you to have a comprehensive knowledge of the legal aspects of contracting. If you are based in New York, then this guide is for you! Here, we'll answer all of your questions surrounding independent contractor agreements in New York. From understanding local regulations to where to find the right counsel, you will learn all you need to know to become an informed contracting party.
What Is an Independent Contractor Agreement?
An independent contractor agreement is a legal document that lays out the parameters of a working relationship between an independent contractor and a person or business requiring services. This type of agreement is common among both professionals, such as lawyers, and contractors, such as plumbers and electricians.
A legal document that outlines the scope of a project and the responsibilities of each party involved is typically referred to as a service contract, work agreement, or project agreement. It is important to understand the differences between an independent contractor agreement and an employment contract so that you can make the best decisions for your business.
The Benefits of Having an Independent Contractor Agreement
The benefits of having a written independent contractor agreement are significant. An agreement defines the terms of the relationship, including the project or service that the contractor will provide, the responsibilities of each party, and the duration of the agreement. The contract helps to protect the contractor and the employer from potential disputes that may arise throughout the duration of the project. It also clarifies different points of the project or service that the contractor and the employer may not always agree on, which can reduce the chance of a lengthy dispute down the line.
Having a written agreement is also beneficial to employers because it provides them with legal protection in the event of a breach of contract. If an employer has a written agreement with a contractor, a court of law may be able to enforce the penalties outlined in the agreement if the contractor fails to meet their contractual obligations.
What Does an Independent Contractor Agreement Typically Include?
Independent contractor agreements generally include the following items:
• The scope of the project or service: This section will outline the exact service that the independent contractor will provide, as well as the timeline for completion.
• Payment terms: This section should include the terms of payment, such as when payments will be received and the method of payment.
• Liability: This section should outline how disputes will be handled and who will be liable in the case of a dispute.
• Confidentiality: This section should outline how both parties will handle confidential information.
• Non-disclosure: This section should state that the contractor will not use or share any confidential or proprietary information of the employer.
• Termination: This section should outline the terms of termination of the agreement, including the methods for cancelling the agreement and any penalties associated with terminating the agreement.
What Are the Laws Regarding Independent Contractor Agreements in New York?
New York is one of the states that has established specific laws when it comes to independent contractor agreements. New York law prohibits companies from misclassifying employees as independent contractors. Companies must accurately classify workers to ensure that the workers are paid in compliance with state and federal laws.
Additionally, New York law requires that any company that enters into an independent contractor agreement outline the parameters of the agreement in a written document. This document should include the scope of the project or service, the payment terms, and any other applicable laws or regulations.
New York also requires that every independent contractor agreement include a clause that states that the contractor is free from the control and direction of the employer, that the contractor is responsible for paying taxes relating to their income, and that the contractor is not covered by standard employee benefits.
Finding Legal Support for Your Independent Contractor Agreement
When it comes to drafting an independent contractor agreement, it pays to get the right help. Businesses based in New York who are looking for experienced, local counsel should consider UpCounsel. Whether you need a one-time consult or an entire freelance legal department, UpCounsel’s network of experienced lawyers have you covered. From small businesses to the Fortune 1000, groundbreaking companies of all sizes trust UpCounsel and its attorney community to provide high quality, cost-effective legal services. Companies working with UpCounsel can benefit from the following:
• Access to high quality attorneys on-demand
• Business attorneys with an average of 14 years of experience
• Profiles of our online attorneys display client ratings and reviews of recent work
When it comes to understanding your independent contractor agreement in New York, make sure you get the help you need. UpCounsel’s experienced attorneys can provide you with the legal services and guidance you need to be successful.