Independent Contractor Agreement
(Pro-service Recipient) (NY)

Summary

This template is an independent contractor agreement between an independent contractor and the party for whom the independent contractor will perform specified services in New York. This template includes practical guidance, drafting notes, alternate clauses, and optional clauses. This template has been drafted with terms that favor the client receiving the services and is intended for private employers. Its language has been customized to comply with New York and federal law. As a result, the text of this template differs from the non-jurisdictional Independent Contractor Agreement (Pro-service Recipient). The terms "Contractor" and "Client" are used to help avoid the parties' relationship being characterized as an employee/employer relationship. Note, however, that the key determination of whether a worker is characterized as an employee or independent contractor hinges on control. The more a client controls a contractor, the more likely an employee/employer relationship exists instead of a client/independent contractor relationship. The determination of whether a worker is properly classified as an employee or an independent contractor faces different scrutiny and has different considerations in other labor areas such as for unemployment and disability insurance requirements, income tax withholdings, and workers' compensation claims. In general, the basic questions still revolve around the right to control, but there are specific tests in New York depending on profession, the employee, and other factors. Counsel should therefore consult both relevant federal and state laws to ensure compliance with applicable law. For a full listing of key content covering independent contractor considerations, see Independent Contractor Resource Kit. For more information on New York's independent contractor laws and classification issues, see Independent Contractors (NY). For state-specific independent contractor agreement templates, see the Independent Contractors and Interns column of Wage and Hour State Expert Forms Chart. For additional guidance on drafting an independent contractor agreement, see Independent Contractor Agreements: Major Negotiation, Drafting, and Legal Issues, Supply of Services, and General Terms and Conditions for Services (Pro-Customer). For information on independent contractor and employee classification, see Independent Contractor Tests and Risks of Worker Misclassification and Independent Contractor and Employee Classification: Special Tax Issues.