Kentucky independent contractor agreement template

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How Kentucky independent contractor agreement Differ from Other States

  1. Kentucky uses its own 'ABC' test and other statutory factors to distinguish contractors from employees, differing from some other states.

  2. Kentucky imposes unique registration and tax obligations for independent contractors, including specific local workforce reporting.

  3. The state limits some non-compete and non-solicitation clauses differently compared to other states’ contractor agreements.

Frequently Asked Questions (FAQ)

  • Q: Does Kentucky require a written agreement for independent contractors?

    A: A written agreement is not legally required, but it is strongly recommended to avoid misclassification and disputes.

  • Q: How does Kentucky classify independent contractors?

    A: Kentucky uses multiple tests, including the common law control test and statutory definitions, to determine contractor status.

  • Q: Are independent contractors in Kentucky responsible for their own taxes?

    A: Yes, Kentucky independent contractors must manage and pay their own federal, state, and local taxes.

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Kentucky Independent Contractor Agreement

This Independent Contractor Agreement (the “Agreement”) is made and entered into as of this [Date], by and between [Company Name], a [Business Type] with its principal place of business at [Company Address] (hereinafter referred to as "Client"), and [Contractor Name], a [Business Type] with its principal place of business at [Contractor Address] (hereinafter referred to as "Contractor").

1. Description of Services

Option A: Contractor shall provide the following services to Client: [Description of Services].

Option B: Contractor shall perform the services described in Exhibit A, attached hereto and incorporated herein by reference.

2. Scope of Work

Option A: The scope of work includes, but is not limited to: [Detailed Scope of Work].

Option B: The Contractor will be responsible for completing the project according to the specifications outlined in Exhibit B.

3. Milestones/Deliverables

Option A: The project will be completed in the following milestones: [List of Milestones], with deadlines as follows: [List of Deadlines].

Option B: Deliverables include: [List of Deliverables].

Option C: There are no specific milestones or deliverables. The project will be conducted with ongoing communication.

4. Location of Services

Option A: Services shall be performed at [Location of Services].

Option B: Services shall be performed remotely.

Option C: Services may be performed at any location chosen by the Contractor.

5. Term of Agreement

Option A: This Agreement shall commence on [Start Date] and shall continue until [End Date].

Option B: This Agreement shall commence on [Start Date] and shall continue until the project is completed.

Option C: This Agreement shall commence on [Start Date] and continue until terminated as provided herein.

6. Contractor Status

Option A: Contractor is an independent contractor and not an employee, agent, or partner of Client. Contractor is solely responsible for determining the method, details, and means of performing the services.

Option B: Contractor is an independent contractor and is not entitled to any employee benefits, including but not limited to health insurance, paid time off, or retirement plans. Contractor determines their own work schedule.

Option C: The Client can offer guidance and project parameters, but the Contractor is free to decide on execution methodologies.

7. Compensation

Option A: Client shall pay Contractor at a rate of [Hourly Rate] per hour.

Option B: Client shall pay Contractor a flat fee of [Flat Fee Amount] for the completion of the services.

Option C: Client shall pay Contractor a commission of [Commission Percentage]% on [Commission Basis].

Option D: Client shall pay Contractor according to the schedule of payments outlined in Exhibit C.

8. Payment Terms

Option A: Contractor shall submit invoices to Client on a [Payment Frequency, e.g., weekly, monthly] basis.

Option B: Payment shall be made within [Number] days of receipt of a valid invoice.

Option C: Payments will be made via [Payment Method].

9. Expenses

Option A: Client shall reimburse Contractor for reasonable and necessary expenses incurred in connection with the performance of the services, subject to prior written approval.

Option B: Client shall not reimburse Contractor for any expenses.

Option C: Expenses up to [Amount] will be pre-approved for [Type of Expense].

10. Confidentiality

Option A: Contractor agrees to hold all confidential information of Client in strict confidence.

Option B: Confidential information includes, but is not limited to, [List of Confidential Information].

Option C: This confidentiality obligation shall survive the termination of this Agreement for a period of [Number] years.

11. Intellectual Property

Option A: All work product created by Contractor in connection with this Agreement shall be considered "work for hire" and shall be owned exclusively by Client.

Option B: Contractor retains ownership of all intellectual property, but grants Client a perpetual, irrevocable, non-exclusive license to use the work product.

Option C: Each party retains ownership of the IP they bring to the project.

12. Non-Solicitation/Non-Compete

Option A: During the term of this Agreement and for a period of [Number] years thereafter, Contractor shall not solicit any employees or clients of Client.

Option B: During the term of this Agreement and for a period of [Number] years thereafter, and within a [Geographic Area] radius of Client’s principal place of business, Contractor shall not engage in any business that is competitive with Client’s business. (Note: Kentucky law disfavors overly broad non-competes. Ensure any non-compete is reasonable in scope, duration, and geographic area.)

Option C: This clause is intentionally omitted.

13. Representations and Warranties

Option A: Contractor represents and warrants that they have the right to enter into this Agreement and that their work will not infringe on the rights of any third party.

Option B: Contractor represents and warrants that all work product will be original and free from defects.

Option C: Contractor has proper licensing and credentials to perform the outlined service.

14. Indemnification

Option A: Contractor shall indemnify and hold Client harmless from any and all claims, losses, damages, liabilities, costs, and expenses arising out of or in connection with Contractor’s performance of the services.

Option B: Client shall indemnify Contractor against claims arising from negligent acts committed by Client.

Option C: Each party is responsible for damages they incur during the process.

15. Tools, Materials, and Equipment

Option A: Contractor shall provide all tools, materials, and equipment necessary to perform the services.

Option B: Client shall provide all tools, materials, and equipment necessary to perform the services.

Option C: [List of items provided by each party]

16. Insurance

Option A: Contractor shall maintain general liability insurance with a minimum coverage of [Amount].

Option B: Contractor shall maintain professional liability insurance with a minimum coverage of [Amount].

Option C: Contractor is not required to maintain insurance.

17. Termination

Option A: Either party may terminate this Agreement for cause upon [Number] days written notice.

Option B: Client may terminate this Agreement for convenience upon [Number] days written notice.

Option C: This agreement shall terminate upon completion of the work.

18. Dispute Resolution

Option A: Any dispute arising out of or relating to this Agreement shall be resolved through mediation in [City, Kentucky].

Option B: Any dispute arising out of or relating to this Agreement shall be resolved through binding arbitration in accordance with the rules of the American Arbitration Association.

Option C: Any legal action arising out of this agreement shall be brought in Kentucky Courts.

19. Compliance

Option A: Both parties shall comply with all applicable federal, state, and local laws.

Option B: Contractor affirms they are responsible for all tax filings and other obligations.

20. Assignment/Subcontracting

Option A: Neither party may assign this Agreement without the prior written consent of the other party.

Option B: Contractor may subcontract the performance of the services with the prior written consent of Client.

Option C: Contractor is allowed to bring in subcontractors for specialized skills but remains responsible for outcomes.

21. Notices

Option A: All notices under this Agreement shall be in writing and shall be delivered by certified mail or email to the addresses set forth above.

Option B: Notices may be delivered through personal contact by either party.

22. Entire Agreement

Option A: This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written.

23. Severability

Option A: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

24. Amendment

Option A: This Agreement may be amended only by a written instrument signed by both parties.

25. Waiver

Option A: No waiver of any provision of this Agreement shall be effective unless in writing and signed by the waiving party.

26. Counterparts

Option A: 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.

27. Independent Business Judgment

Option A: The parties acknowledge that they have exercised independent business judgment in entering into this Agreement.

28. Kentucky-Specific Considerations

Option A: This agreement intends to comply with the definition of an independent contractor under Kentucky law, KRS 336.070 and applicable court decisions. The contractor maintains control over the method of work and owns their own equipment.

Option B: Contractor acknowledges they are responsible for their own self-employment tax and unemployment insurance contributions as required by Kentucky Law.

Option C: Contractor represents that they possess the necessary licenses and insurance to perform any construction-related work covered by this agreement, complying with Kentucky construction statutes and worker's compensation regulations.

29. Background Check/Drug Testing

Option A: Contractor agrees to submit to a background check and/or drug testing, as required by Client.

Option B: Background Check and Drug testing are not required.

30. Other Special Provisions

Option A: [Add other special provisions here]

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

[Company Name]

By: [Company Representative Name]

Title: [Company Representative Title]

[Contractor Name]

By: [Contractor Name]

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