Independent Contractor Agreements

Independent Contractor Agreements in Las Vegas, NV

Many companies desire to contract around the burdens of employment by entering into independent contractor agreements. This can be a smart business strategy that reduces costs, increases efficiency, and improves job performance by shifting risks and incentives to independent contractors. However, what a company calls the relationship with its employee/independent contractor is not a significant legal consideration. Courts instead look to the degree of control exercised over the service provider by the employer. At common law, this was called respondeat superior however Nevada has codified these factors as NRS 608.0155. For a consultation, contact us online, or give us a call at 702-660-7700 today!

Considerations for Vegas Independent Contractor Agreements

In any question regarding the status of an independent contractor, court are directed to look at (1) whether the independent contractor has filed income taxes for self-employment, (2) whether the independent contractor is required to hold a state or local business license to perform contracted for services, (3) whether the independent contractor has control over the means and manner of performing the work contracted for, (4) whether the independent contractor has control over their scheduling, (5) whether the independent contractor is required to work exclusivity for the employer, (6) whether the independent contractor may hire its own employees to perform services, and (7) whether the independent contractor must use their own tools, materials, or equipment to complete contracted for work.

It can be expensive for the company that presumes the existence of an independent contractor relationship without consulting with an attorney. A wrong decision can lead to wage and hour claims, overtime claims, claims for unpaid employment taxes, and other penalties.

Start a Consultation Today

We take the time to craft independent contractor agreements that provide clarity and significantly decrease the likelihood that your company will be subject to claims that your independent contractors are employees. For a consultation, contact us online, or give us a call at 702-660-7700 today!

Independent Contractor Agreement FAQs:

What should be included in an Independent Contractor Agreement?

A well-drafted agreement should include the scope of services, payment terms, deadlines, confidentiality provisions, non-compete clauses (if applicable), intellectual property rights, and a termination clause. Legal counsel can help tailor the agreement to meet specific needs.

Can an Independent Contractor Agreement affect my tax status?

Yes, the agreement helps define your tax responsibilities. Unlike employees, independent contractors are responsible for paying their self-employment taxes, and businesses aren’t required to withhold taxes or pay employment benefits.

How is an independent contractor different from an employee in Nevada?

Independent contractors have more control over how they complete their work, aren’t entitled to employee benefits, and handle their own taxes. Employees typically have a set schedule and are managed by the company, which has legal obligations to withhold taxes and provide certain benefits.

Do Independent Contractor Agreements need to be in writing?

While verbal agreements can be legally binding, a written agreement is highly recommended to avoid misunderstandings and protect the interests of both parties. Written contracts are also more easily enforced in legal disputes.

Can I modify an Independent Contractor Agreement once it’s signed?

Yes, but both parties must agree to the modifications, and any changes should be documented in writing. Consulting an attorney can ensure that modifications are compliant with Nevada law.