If you’re hiring someone to assist with providing services you are providing to clients, there are serious business, legal, and tax implications for whether they will be considered an independent contractor or employee.
Key Clauses included are:
Assignment of Intellectual Property Rights – Contractor agrees to assign (transfer ownership) anything they create for you that doesn’t fall within the narrow definition of “Work For Hire”. It’s always best to secure this ownership BEFORE they perform the work and are paid than after.
Non-Solicitation – Contractor can’t try to steal your clients or employees.
Non-Disparagement – It’s best to get it in writing the Contractor won’t talk negatively about you or your company at the start of the relationship.
Tolling – is a critical clause left out of a lot of online templates. “Tolling” means to suspend or interrupt and this clause pauses the Statute of Limitations (statutory limit on the amount of time after breaching this contract that is allowed to pass before you are barred from filing a lawsuit against the contractor.)