Alabama hr independent contractor agreement template

Alabama HR Independent Contractor Agreement

This Alabama HR Independent Contractor Agreement (the “Agreement”) is made and entered into as of [Date], by and between [Client Legal Name], a [Client Business Entity Type, e.g., Alabama LLC], with its principal place of business at [Client Address] (“Client”), and [Contractor Legal Name], a [Contractor Business Entity Type, e.g., Sole Proprietorship], with its principal place of business/residence at [Contractor Address] (“Contractor”).

Scope of HR Services

• Option A: The Contractor shall provide the following HR services to the Client: [Detailed description of HR services, e.g., Recruiting for specific positions, Onboarding process development, Wage and hour compliance consultation for Alabama, Employee handbook review and updates to comply with Alabama law].
• Option B: The Contractor shall perform the HR services as detailed in Exhibit A, attached hereto and incorporated herein.
• Service Deliverables: [Specific deliverables, e.g., Number of candidates screened, Updated employee handbook sections, Written compliance report].
• Performance Standards: [Metrics for quality, e.g., Candidate placement rate, Accuracy of handbook updates, Timeliness of report delivery].
• Timelines/Milestones: [Specific dates for key deliverables, e.g., Initial candidate pool by [Date], Handbook update completion by [Date]].
• Reporting Periods: [Frequency of progress reports, e.g., Weekly, Bi-weekly].
• Required Documentation: [Types of documents to be submitted, e.g., Candidate resumes, Draft handbook sections, Compliance audit documentation].

Work Location and Access

• Option A: The Contractor will perform services remotely.
• Option B: The Contractor will perform services on-site at the Client’s facilities located at [Client Facility Address in Alabama].
• Option C: The Contractor will perform services on a hybrid basis, with [Number] days per week on-site and the remainder remotely.
• Access Requirements: [Specify any required access badges, security protocols, or systems access].
• Record-Keeping Obligations: [Description of required record-keeping, e.g., Time logs, Project documentation].
• Return/Destruction of Confidential Materials: Upon termination of this Agreement, the Contractor shall return or destroy (at Client’s option) all confidential materials belonging to the Client.

Alabama Regulatory Compliance

• The Contractor shall comply with all applicable Alabama and federal laws and regulations, including but not limited to Alabama’s wage and hour laws, at-will employment doctrine, and statutory employment classification rules.
• The Contractor shall be responsible for ensuring compliance with Alabama-specific background check and drug screening requirements, if applicable to the services provided.
• The Contractor shall comply with all applicable nondiscrimination and affirmative action obligations under state and federal law relevant to Alabama.
• The Contractor shall comply with all applicable local ordinances where work is performed in Alabama.

Compensation and Payment

• Option A: The Client shall compensate the Contractor at an hourly rate of [Hourly Rate] per hour.
• Option B: The Client shall compensate the Contractor a fixed fee of [Project Fee] per project, as defined in Exhibit A.
• Option C: The Client shall compensate the Contractor a retainer of [Retainer Amount] per month.
• Invoicing Frequency and Format: The Contractor shall submit invoices to the Client [Frequency, e.g., Bi-weekly] in the format specified in Exhibit B.
• Alabama State Tax Compliance: The Contractor is responsible for all individual tax and insurance obligations, including compliance with Form 1099-NEC requirements. Contractor acknowledges that Client will not withhold taxes. Contractor is responsible for all necessary state and local business licenses/privilege taxes.
• Payment Method: Payments shall be made by [Payment Method, e.g., Check, Electronic Funds Transfer].
• Late Payment Penalties: Late payments shall be subject to a penalty of [Penalty Percentage] per month, as permitted under Alabama law.
• Travel/Incidental Reimbursements: [Specify if travel or other expenses are reimbursable, and the reimbursement policy].

Intellectual Property and Confidentiality

• Ownership of Work Product: All intellectual property, data, policies, handbooks, and work products created by the Contractor in connection with this Agreement shall be the sole property of the Client.
• Confidentiality: The Contractor shall maintain the confidentiality of all Client and employee information, consistent with Alabama trade secrets law (Ala. Code § 8-27-1 et seq.).
• Data Protection: The Contractor shall implement and maintain reasonable safeguards to protect Client data and records from unauthorized access or disclosure.
• Return of Materials: Upon termination of this Agreement, the Contractor shall return all Client confidential information and work products.

Audit and Inspection Rights

The Client shall have the right to audit and inspect the Contractor’s compliance with workplace policies, confidentiality obligations, and eligibility for Alabama HR certification or licensing (if applicable).

Independent Contractor Status

The Contractor is an independent contractor and not an employee of the Client. This Agreement does not create an employer-employee relationship. The Contractor has autonomy in determining the work process, provides their own tools and equipment, has financial control over their business, and is not entitled to employee benefits. Contractor is responsible for all of their own employment taxes and insurance. The parties intend for this Agreement to be interpreted consistently with Alabama tests distinguishing contractors from employees under both state labor code and IRS guidelines.

Liability and Remedies

• The Contractor shall be liable for any breach of contract, errors or omissions in HR work, negligent advice, noncompliance with Alabama law, misclassification of employees, failure to safeguard confidential data, or violations of the Alabama Deceptive Trade Practices Act.
• Indemnification: The Contractor shall indemnify and hold harmless the Client from and against any and all claims, losses, damages, liabilities, costs, and expenses arising out of or related to the Contractor’s performance of services under this Agreement.
• Insurance: The Contractor shall maintain professional liability (errors and omissions) insurance with coverage limits of [Insurance Amount].

Term and Termination

• Term: This Agreement shall commence on [Start Date] and shall continue for a term of [Number] months, unless earlier terminated as provided herein.
• Renewal: This Agreement may be renewed for successive terms upon written agreement of the parties.
• Early Termination: Either party may terminate this Agreement upon [Number] days written notice to the other party, consistent with Alabama law.
• Termination for Cause: The Client may terminate this Agreement immediately upon written notice if the Contractor breaches this Agreement or violates any applicable law.
• Final Settlement: Upon termination, the Client shall pay the Contractor for all services performed and expenses incurred up to the date of termination.
• Non-Solicitation/Non-Compete: During the term of this Agreement and for a period of [Number] months following termination, the Contractor shall not solicit the Client’s employees or clients, within a [Number] mile radius of the Client's Alabama location, to the extent enforceable under Alabama law.

Dispute Resolution

• The parties shall first attempt to resolve any disputes arising out of or relating to this Agreement through good faith negotiation.
• If negotiation fails, the parties shall submit the dispute to mediation in [City, Alabama].
• If mediation fails, the dispute shall be resolved by binding arbitration in [City, Alabama], in accordance with the rules of the American Arbitration Association. Alabama law shall govern the arbitration. The parties waive their right to a jury trial.

Compliance with Laws and Standards

• The Contractor shall comply with all applicable Alabama and federal HR, labor, data privacy, and professional practice standards, including but not limited to FLSA, ADA, Alabama Child Labor Law, and any specific ALDOL or ADOL directives.
• The Contractor shall maintain up-to-date professional certifications as required by applicable law and industry standards.

Records Retention and Access

The Contractor shall maintain records of all services performed under this Agreement in compliance with Alabama labor records laws and shall provide the Client with access to such records upon request.

Subcontracting

The Contractor shall not subcontract any HR duties without the Client’s prior written consent. Any subcontractor must meet the Client’s approval criteria, including background checks.

Force Majeure

Neither party shall be liable for any failure to perform its obligations under this Agreement if such failure is caused by a force majeure event, as defined under Alabama legal standards.

Miscellaneous

• Non-Waiver: No waiver of any provision of this Agreement shall be effective unless in writing and signed by the party against whom the waiver is sought to be enforced.
• Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
• Amendments: This Agreement may be amended only by a written instrument signed by both parties.
• Entire Agreement: This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications and proposals, whether oral or written.
• Counterparts: This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

[Client Legal Name]

By: [Client Name]

Title: [Client Title]

[Contractor Legal Name]

By: [Contractor Name]

Title: [Contractor Title, e.g., Owner, Consultant]