This document sets forth a checklist of issues a company should consider in drafting a
contract for services by an independent contractor. It is important to determine whether
the company had the right to direct and control workers not only as to the results
desired, but also as to the details, manner and means by which the results were
accomplished. If the company has the right to supervise and control such details of the
work performed, and the manner and means by which the results were to be
accomplished, this tends to indicate an employer-employee relationship. On the other
hand, the absence of supervision and control by the company would support a finding
that a worker is an independent contractor. This checklist should be used by companies
to be sure workers hired for service will be classified as independent contractors.
Checklist with Regard to an Independent Contractor
Checklist of matters that should be considered in drafting a contract for
employment of an independent contractor:
1. Names and addresses of parties.
2. Description of work contracted for -- place of performance.
3. Statement of intent that employer-independent contractor relationship be
A. Disaffirmance of agency or employer-employee relationship.
B. Limitation of employer's control over work.
C. Exclusion of contractor's employees from coverage of employer's
employee benefit program.
4. Rights and duties of contractor.
A. Control of work.
B. Hiring and compensation of employees.
C. Furnishing of materials and equipment.
D. Right to contract with other employers.
5. Rights of employer.
A. Inspection and approval of work.
B. Contracts with other contractors.
6. Compensation of contractor.
A. Amount or method of computation.
B. Time and manner of payment.
7. Liability for personal injury or property damage.
A. Negligence in performing work.
B. Faulty materials or equipment.
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8. Insurance and indemnification.
9. Duration of contract.
10. Termination rights on default.
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