In the U.S., independent contractors make up a large percentage of the workforce. In fact, in the next decade, the U.S. Bureau of Labor Statistics expects that contract workers could make up half of the workforce. Independent contractors are a critical part of the economy and often work alongside staffing agencies. However, how you create a staffing agency independent contractor agreementis critical to protecting the agency and the contractor.
How To Handle Intellectual Property
Intellectual property can be complicated when dealing with freelancers or contractors. You have to clarify who has ownership of the intellectual property at the end of the day. In many cases, the intellectual property belongs to either the firm or the individual. The contract can outline who owns the property.
How To Handle Insurance Coverage
Independent contractors do not have to be covered under an employer’s insurance program. While the Affordable Care Act instructs that all businesses with more than 50 full-time employees have to provide health care, this does not count when it comes to independent contractors. Still, your contract should always include a strict explanation of the relationship between the two parties. If you are not clear in classifying independent contractors, they could claim that they were misclassified.
When it comes to working with independent contractors, it can be an extremely beneficial relationship for both parties. To avoid any risks, however, a strict agreement must outline the relationship.