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Independent contractors: Keeping agreements clear is key

Someone who works as an independent contractor may enjoy the freedom of choosing which projects to take on and how and when the work will be completed. Under Nevada law, an independent contractor is someone who is self-employed and agrees to do work for a client but is not under the supervision of that client.

The law also states that these types of workers are not able to file a claim for wages unpaid when due with the Commissioner of Labor. Instead, it is imperative to have a clear agreement that outlines exactly what work is to take place and the consequences of nonpayment.

A recent Tech Republic article details the importance of having a comprehensive, written contract signed before engaging in any work. This document can help to prevent costly disputes and litigation down the road because it serves as a point of reference. The article points out the following components that should be included in the contract: 

  • The names and addresses of both the client and the contractor
  • Specific detail regarding the work that is to be completed
  • Payment information
  • A timeline that demonstrates deadlines or milestone dates
  • Clear language regarding any possible revisions, including a cost for revisions if applicable
  • The responsibilities of the client regarding review of the work

Tech Republic advises independent contractors to clearly state their status and demonstrate that they are not employees of the company. Failing to do so can result in complications with the Internal Revenue Service. Lastly, the contract should outline situations in which the document may be terminated, such as the client failing to make timely payments or otherwise not fulfilling an obligation. Vague language and inattention to detail on these documents can prove costly for an independent contractor.

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