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General Purpose. This indendent contractor agreement spells out the legal relationship between the employer (known in our contract language as "principal") and the contractor. It is written for use by both independent contractors and principals. The following is a list of feature contained in this agreement (although a user does not have to incorporate all features into an independent contractor agreement created on our site):

1. Set forth duties of independent contractor;
2. Select a fixed term of contract (such as 1 year) or for to last until a project is completed (i.e., to build custom software to specifications) or have the contract terminable "at will" meaning independent contractor continues until either side gives proper notice to terminate;
3. Set grounds of termination for cause;
4. Create confidentiality agreement within the contract requiring the independent contractor not to disclose confidential materials and information of principal;
5. Set forth independent contractor compensation including any fixed commission schedule;
6. In the case of a principal, facilitates injunction relief from a court should the employee breach the confidentiality agreement (an injunction is a court order generally directing the employee to cease the activity which is in breach of the confidentiality); and
7. Allows you to add language into the contract that helps establish that the contractor holds "independent contractor" status for tax purposes.
8. Allows the user to elect to have language inserted into the document for notary
9. Note: This agreement is not meant for use with construction contracts.

Tax Status as Independent Contractor. We suggest you consult your tax accountant or attorney for a determination of whether the individual you are hiring as a contractor is properly classified as an "indenpendent contractor" for tax purposes. Use of this form does not ensure classification of worker as "independent contractor". For more information about the issue of "independent contractor" v. "employee", the following is a link to the Internal Revenue Service's most important ruling on this subject: IRS Revenue Ruling 87-41

If you do not wish to set a level of compensation for the independent contractor in your agreement and your main objective is a confidentiality agreement, then you are better off using our Confidentiality and Noncompete Agreement for Employees or Contractors. The following are links to others MedLawPlus.comŽ forms that contain confidentiality agreements:

1. Employment Agreement
2. Independent Contractor Agreement
3. Confidentiality Agreement for Employees and Independent Contractors (without the full employment agreement)
4. Letter of Intent (used once the parties have reached agreement relative to an asset or business sale)

Links to labor / employment law sites:

AllBusiness, employee termination;

Equal Employment Opportunity Commission;

'Lectric Law Library;

Department of Labor, summary of laws; and

employment-law.freeadvice.com.