Minnesota design independent contractor agreement template
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How Minnesota design independent contractor agreement Differ from Other States
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Minnesota law requires meeting a nine-factor test to establish independent contractor status, which is stricter than many states.
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Minnesota applies unique tax withholding and reporting requirements for independent contractors, especially for design professionals.
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Workers’ compensation is obligatory for most independent contractors in Minnesota, unlike in some other states where exemptions may apply.
Frequently Asked Questions (FAQ)
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Q: Does Minnesota require a written independent contractor agreement?
A: While a written agreement is not legally mandatory, it is highly recommended to prove the existence and terms of the contractor relationship.
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Q: What should a Minnesota design independent contractor agreement include?
A: It must detail services, payment terms, deadlines, intellectual property rights, legal compliance, and dispute resolution clauses.
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Q: Are design contractors in Minnesota responsible for their own taxes?
A: Yes, design independent contractors must handle their own tax filings and may receive a 1099-NEC from the hiring party.
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Minnesota Design Independent Contractor Agreement
This Minnesota Design Independent Contractor Agreement (the "Agreement") is made and entered into as of [Date] by and between:
- [Client Legal Name], located at [Client Address], hereinafter referred to as "Client," and
- [Contractor Legal Name], located at [Contractor Address], hereinafter referred to as "Contractor."
Scope of Work
- Option A: The Contractor shall provide the following design services to the Client: [Description of Services]. This includes:
- Graphic design services for print media.
- Web design services for digital platforms.
- Option B: The Contractor will perform services as described in Exhibit A (Project Brief).
- Services encompass branding and identity design.
- Services involve creating UI/UX interfaces.
Deliverables
- Option A: The Contractor shall deliver the following: [List of Deliverables]. File formats will be [File Formats].
- A final logo design in vector format.
- Website mockups as layered PSD files.
- Option B: Deliverables are detailed in Exhibit B (Deliverables Schedule).
- Draft designs will be provided for review and feedback.
- Source files will be provided upon final payment.
Project Timeline
- Option A: The project will commence on [Start Date] and is expected to be completed by [End Date]. Key milestones: [List of Milestones and Deadlines].
- Initial concept due [Date].
- Final design approval by [Date].
- Option B: Refer to Exhibit C (Project Timeline) for detailed milestones.
- Feedback cycles will be completed within [Number] days.
- Submission of final assets via [Platform/Method].
Workplace Arrangements
- Option A: The Contractor will perform services remotely.
- Option B: The Contractor will perform services on-site at the Client's location at [Client Address].
- The contractor needs access to [List Access Needs, e.g., specific software licenses].
- The Client will provide a workstation.
Compensation and Payment
- Option A: The Client shall pay the Contractor at an hourly rate of [Hourly Rate]. Total estimated compensation is [Estimated Total].
- Option B: The Client shall pay the Contractor a flat fee of [Flat Fee].
- Option C: Payment will be made per milestone as follows: [Milestone Payment Schedule].
- Accepted Payment Methods: [List Accepted Payment Methods]
- Invoice Procedures: Invoices shall be submitted [Frequency] and include [Required Information].
- Reimbursement for Pre-Approved Expenses: [Details on expense reimbursement, e.g., fonts, stock photos]. Minnesota sales tax will be applied as required by law.
Intellectual Property
- Option A: All original work created by the Contractor shall be owned by the Client. Copyright is assigned to the Client upon final payment.
- Option B: The Contractor retains ownership of original work, but grants the Client a [Type of License, e.g., perpetual, non-exclusive] license to use the designs.
- Moral rights are waived to the extent permissible under Minnesota law.
- Client-Provided Materials: [Terms regarding use of Client's existing materials].
Confidentiality
- The Contractor agrees to hold all Client information confidential.
- This includes [Specific types of confidential information, e.g., trade secrets, customer lists].
- The Contractor will comply with all applicable Minnesota laws regarding data privacy.
Independent Contractor Status
- The Contractor is an independent contractor and not an employee of the Client.
- The Client will not provide employee benefits.
- The Contractor is responsible for their own Social Security, Medicare, and other taxes.
- The Contractor is responsible for workers' compensation and insurance.
- Indemnification: The Contractor agrees to indemnify the Client against any claims of worker misclassification under Minnesota law (Minnesota Statutes §181.723).
Client Feedback and Communication
- Feedback shall be provided within [Number] days of deliverable submission.
- Communication will primarily occur via [Communication Method, e.g., email, project management software].
- Regular project status updates will be provided [Frequency].
Non-Compete and Non-Solicitation
- Option A: The Contractor agrees not to compete with the Client within a [Geographic Area] for a period of [Duration] following the termination of this Agreement.
- Option B: The Contractor agrees not to solicit the Client's employees or customers for a period of [Duration] following the termination of this Agreement.
- These clauses are subject to Minnesota law regarding reasonableness of scope and duration.
Liability and Indemnity
- The Contractor's liability is limited to the amount paid by the Client under this Agreement.
- The Contractor will indemnify the Client against claims of third-party intellectual property infringement arising from the Contractor's work, excluding Client-provided materials.
Dispute Resolution
- The parties agree to first attempt to resolve any disputes through good faith negotiation.
- If negotiation fails, the parties agree to mediation in [City, Minnesota].
- Governing Law: This Agreement shall be governed by the laws of the State of Minnesota.
Termination
- Option A: Either party may terminate this Agreement upon [Number] days written notice.
- Option B: The Client may terminate this Agreement for cause immediately.
- Upon termination, the Contractor shall deliver all work in progress and be paid for work completed to date.
Assignment and Subcontracting
- The Contractor may not assign or subcontract this Agreement without the Client's written consent.
Force Majeure
- Neither party shall be liable for delays caused by events beyond their reasonable control, including acts of God, war, or government regulations.
Signatures
- This Agreement may be executed in counterparts, including electronic signatures authorized under the Minnesota Uniform Electronic Transactions Act.
[Client Legal Name]
By: [Client Name]
Title: [Client Title]
Date: [Date]
[Contractor Legal Name]
By: [Contractor Name]
Title: [Contractor Title]
Date: [Date]
Exhibits:
- Exhibit A: Project Brief
- Exhibit B: Deliverables Schedule
- Exhibit C: Project Timeline
Required Notices:
- Both parties acknowledge receipt of these written terms.
- The Contractor acknowledges responsibility for compliance with Minnesota New Hire Reporting requirements (if applicable) and unemployment insurance exclusions.