Independent Contractor Agreements: Should You Use Them In Your Internet Business?
Let’s make one thing clear. An independent contractor agreement should never be used in your Internet business to disguise an employer-employee relationship. If you get caught doing this with an employee, you could be held liable for payroll taxes and some nasty penalties. Simply not worth the risk.
If there truly is an independent contractor relationship, such as a work-for-hire web design gig for a single site, you’ll want a signed written independent contractor agreement in place to protect your legal rights.
Although the terms of an independent contracting agreement will vary depending upon the type of work to be performed and the unique circumstances surrounding the relationship, there are some general provisions that most of these types of contracts have in them in order to be binding (legally enforceable) in a way that offers you protection. These terms include:
- Scope of work
- Price (amount and time(s) of payment)
- Expense allocation (including any reimbursements)
- Deadline for completion
- Milestones (often tied to payment)
- Existence of an independent contractor relationship rather than employment
- Ownership of intellectual property rights for work created and protection of trade secrets
- Governing law and jurisdiction
- Alternative dispute resolution provisions
Your Internet lawyer can draft customized independent contractor provisions that are designed to protect your interests while keeping you out of court in case of a dispute.
Confidentiality Agreements: How To Use Them In Your Internet Business
When you’re dealing with trade secrets and other sensitive Internet business information, you’re going to want your employees and independent contractors to sign binding confidentiality agreements. This type of contract, also known as a nondisclosure agreement (NDA), is used to identify what information you’re sharing constitutes confidential information, the other party to the agreement acknowledges that he will not be disclosing the information to anyone, and the agreement provides you with legal remedies in case the agreement is breached by unauthorized disclosure.
A confidentiality agreement can be its own contract or it can be part of another agreement, such as a non-compete agreement or a customer non-solicitation agreement. Whether you’ll incorporate it into another contract or have it as a separate agreement, the nondisclosure agreement is essential to protecting your e-commerce company’s important data.
Your Internet lawyer can help you determine the best way to protect your Internet business’ trade secrets.
