Did you know that an estimated 30% of American workers are now self-employed? This number will only continue to grow in the years to come. With the rise of the gig economy, more and more people are choosing to become independent contractors. If you’re thinking about becoming a contractor, it’s essential to understand the basics of separate contractor agreements. This blog post will discuss what you need to know before signing an agreement with a client.
Always Look At The Fine Print
When you’re signing an independent contractor agreement, it’s important to read the fine print carefully. Pay close attention to any clauses or language that you don’t understand. If there is anything in the agreement you’re uncomfortable with, be sure to ask questions and get clarification from the client before signing.
Be Wary Of Non-Compete Clauses
A non-compete clause is a common provision in many independent contractor agreements. This clause essentially states that you will not work with any of the client’s competitors during or after your contract with them. These clauses can be very restrictive and limit your ability to earn income from other clients. If a client asks you to sign a non-compete clause, be sure to have an attorney review it and advise you on whether it’s in your best interests to sign.
Get Paid On Time
One of the most important things to consider when entering into an independent contractor agreement is how and when you will be paid. Be sure to include specific language in your contract that outlines the client’s obligation to pay you promptly. You should also include a clause that states what will happen if the client fails to make a payment on time. Typically, this clause will allow you to terminate the contract if the client doesn’t make a payment within a few days after it’s due.
Look For The “Out” Clause
Most independent contractor agreements will have a section that spells out the circumstances under which either party can end the deal. This is important to pay attention to because you don’t want to be stuck in a situation where you can’t get out of the contract if the client isn’t holding up their end of the bargain. For example, the “out” clause might allow either party to terminate the agreement if there is a material breach of the contract.
By taking the time to understand these key provisions in independent contractor agreements, you can help ensure that your rights are protected and that you are paid what you are owed. If you have any questions about separate contractor agreements or other legal matters, be sure to consult with an experienced attorney who can help ensure that your interests are protected.
