The Hourly Independent Contractor Agreement is essential for businesses in the United States engaging external service providers on an hourly basis. This document helps ensure compliance with IRS guidelines and labor laws by clearly establishing the independent nature of the relationship. It protects both parties by defining payment terms, scope of work, and responsibilities while maintaining appropriate separation from employer-employee relationships. The agreement is particularly valuable for projects requiring flexible timing and variable workloads, where services are compensated based on actual hours worked rather than fixed project fees.
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1. Parties: Identifies the contracting parties and their basic information
2. Background: Brief context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the agreement
4. Services: Detailed description of services to be provided by contractor
5. Payment Terms: Hourly rate, payment schedule, and invoicing requirements
6. Independent Contractor Status: Explicit declaration of independent contractor relationship and compliance with relevant laws
7. Term and Termination: Duration of agreement and termination provisions
8. Taxes and Benefits: Clarification of tax responsibilities and exclusion from benefits
9. General Provisions: Standard legal provisions including governing law and notices
1. Non-Compete: Restrictions on competing activities during and after the agreement term
2. Non-Solicitation: Restrictions on soliciting employees or clients of the company
3. Equipment and Expenses: Provisions for equipment use and expense reimbursement policies
4. Insurance Requirements: Specific insurance coverage requirements for the contractor
1. Schedule A - Scope of Services: Detailed breakdown of services and deliverables
2. Schedule B - Rate Sheet: Detailed breakdown of hourly rates and payment terms
3. Schedule C - Project Timeline: Timeline for specific deliverables or milestones if applicable
4. Form W-9: Required tax identification form for U.S. contractors
Relevant legal definitions
Clauses
Relevant Industries
Relevant Teams
Relevant Roles
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