What is an Independent Contractor Agreement in Arizona?

DEFINING THE ARIZONA INDEPENDENT CONTRACTOR

The definition of an Arizona Independent Contractor is determined by how that person is hired to do a job for another person or a company, also known as the client. The contractor is hired to do a specific job that no one else at the company can do. As part of the arrangement, the contractor works the job on their own hours, can take a lunch hour at will, and is not supervised or controlled in any manner by the client, except to provide the completed work by the date specified by the client in a contract.

The independent contractor is not obligated to work solely for the client and is always free to work for other clients at the same time. The eight most important legal definitions for an Arizona independent contractor are encompassed under A.R.S. Labor § 23-902 (D)(1-8).

Many independent contractor agreements require a down payment of half the fees charged for the job, which must be paid first for the contractor to begin work on the client’s job. Other fees that could be requested for payment upfront, are for materials and supplies to do the job. In such cases, an itemized list of materials and supplies is included with the agreement so that clients know what they are paying for at the start of the job.

AN INDEPENDENT CONTRACTOR AGREEMENT – ARIZONA

All independent contractor agreements must clearly state that the person doing the job is an independent contractor and not an employee. This is important as independent contractors in Arizona are not eligible for workers’ compensation if that person is injured for one reason or another.

ADDENDUM

Should the job change at any point, such as when the client decides a due date needs to be changed for the original job, then an addendum can be applied to the original contract, agreed upon, and signed by both parties. This addendum does not change anything else about the original contract and job except the due date. Here are several reasons for an addendum to a contract:

• A deadline extension from the original date is required,
• A clause in the contract is not really applicable to the job and should be removed,
• Legal textual information must be included in all documents being created for the client (such as marketing or advertising pieces regarding non-liability concerning a product, etc.),
• Need all created documents to be in a certain font and size for consistency with other company documents, and more.

AMENDMENT

An amendment to a contract is where a job and existing contract may be modified by adding, subtracting, or changing a section of a contract. The original contract remains basically the same, but some terms have changed, such as the pricing of materials and supplies.

For example, if you, as a supplier of specialized packaging supplies, have contracted with a client to provide x amount of packaging supplies every six weeks, but supply chain logistics are in chaos, you may have to amend your contract with the client to provide those supplies every eight weeks instead. This can be added to a separate page, or a new contract can be created with the new pricing included. The old contract should be provided as well, showing where the changes have occurred.

WHAT AN INDEPENDENT CONTRACTOR AGREEMENT SHOULD INCLUDE

Several of these statements already mentioned previously should always be included in any agreements created for an Arizona independent contractor and an Arizona client:

• Does not control or supervise the contractor in any way except for stating when the job is due to the client,
• The Arizona independent contractor is not eligible for workers’ compensation,
• The contractor is not required to work exclusively for the employer,
• There are no licenses or business registrations needed to conduct the work,
• The contractor is not paid an hourly wage, only that which is agreed upon as a full fee for each project completed,
• Cannot terminate the contractor from the job being performed, unless the contractor breaches or violates state laws,
• Does not provide any tools for the contractor to complete the job,
• Pays the contractor using the name that appears on the agreement, and
• Does not combine business operations with the contractor, such as requiring the contractor to conduct the job at the employer’s business.

A good idea is to present these statements in the agreement and provide a check box after each one that the independent contractor can check off as having been read and understood. Additionally, a copy of the agreement is also sent to the insurance company to keep in the files so the company is absolved of not having covered the contractor for workers’ compensation insurance.

Even though the independent contractor would not have access to workers’ compensation benefits, contractors can still sue for accidents that cause serious injuries, especially if there is evidence of an unsafe workplace. In this case, a personal injury claim is submitted to the court system, overseen by Arizona injury lawyers.

CALL US IF YOU HAVE QUESTIONS ABOUT YOUR CONTRACTOR AGREEMENT

Arizona Injury Law Group offers experienced and Certified workers’ compensation lawyers and legal services for injured workers. Call for your free consultation! 602-346-9009.