Minnesota hr independent contractor agreement template

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How Minnesota hr independent contractor agreement Differ from Other States

  1. Minnesota law requires a nine-factor test to determine independent contractor status, which is more stringent than many states.

  2. Specific disclosure requirements in Minnesota regarding worker classification and payment arrangements must be included in agreements.

  3. Minnesota imposes significant penalties for worker misclassification, making compliance more critical than in some other states.

Frequently Asked Questions (FAQ)

  • Q: Do Minnesota independent contractor agreements need to be in writing?

    A: While not always legally required, a written contract is strongly recommended to protect both parties' rights under Minnesota law.

  • Q: What tests does Minnesota use to determine independent contractor status?

    A: Minnesota applies a specific nine-factor common law test and requires compliance with wage and employment laws.

  • Q: Are there penalties for misclassifying employees as independent contractors in Minnesota?

    A: Yes, misclassification in Minnesota can result in substantial fines, back pay, and potential litigation for violating employment laws.

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Minnesota HR Independent Contractor Agreement

This Minnesota HR Independent Contractor Agreement (the “Agreement”) is made and entered into as of [Date], by and between [Client Legal Name], with a business address at [Client Business Address] (“Client”), and [Contractor Legal Name], with a business address at [Contractor Business Address] (“Contractor”).

1. Scope of HR Services

The Contractor agrees to provide the following HR services to the Client:

  • Option A: Talent Acquisition Services
    • [Description of talent acquisition services, e.g., sourcing, screening, interviewing, background checks, offer negotiation for specific roles.] Deliverables include: [List specific deliverables, e.g., qualified candidate pipeline, interview summaries, background check reports]. Service standards: [Specify standards, e.g., time to fill, candidate quality metrics]. Milestones: [Define key milestones, e.g., candidate pool established, first-round interviews completed]. Deadline: [Date]. Reporting frequency: [e.g., weekly, bi-weekly].
  • Option B: Employee Relations Consulting
    • [Description of employee relations consulting services, e.g., investigations, conflict resolution, performance management]. Deliverables include: [List specific deliverables, e.g., investigation reports, disciplinary action recommendations, performance improvement plans]. Service standards: [Specify standards, e.g., investigation completion within a specific timeframe]. Milestones: [Define key milestones, e.g., initial fact-finding completed, recommendations presented]. Deadline: [Date]. Reporting frequency: [e.g., as needed, monthly].
  • Option C: Compliance Audits
    • [Description of compliance audit services, e.g., I-9 audits, wage and hour audits, policy reviews]. Deliverables include: [List specific deliverables, e.g., audit reports, compliance recommendations, policy updates]. Service standards: [Specify standards, e.g., accuracy of audit findings, timeliness of recommendations]. Milestones: [Define key milestones, e.g., initial risk assessment, audit fieldwork completed]. Deadline: [Date]. Reporting frequency: [e.g., upon completion of each audit stage].

2. Work Location and Data Security

  • Option A: On-site Work
    • The Contractor will perform services primarily at the Client’s business location at [Client Business Address] in Minnesota. The Contractor will require access to the Client's HRIS and confidential employee records to perform the agreed-upon services.
  • Option B: Remote Work
    • The Contractor will perform services remotely. The Contractor will [state access to HRIS, and confidential employee records].
  • Data Security and Privacy:
    • The Contractor shall comply with all applicable data privacy laws, including the Minnesota Government Data Practices Act (if applicable), and shall maintain the confidentiality and security of all employee data. The Contractor shall implement and maintain appropriate security measures to protect employee data from unauthorized access, use, or disclosure.

3. Compensation

  • Option A: Hourly Rate
    • The Client shall pay the Contractor an hourly rate of [Dollar Amount] per hour for services rendered.
  • Option B: Project-Based Fee
    • The Client shall pay the Contractor a flat fee of [Dollar Amount] for the completion of [Description of Project].
  • Option C: Retainer
    • The Client shall pay the Contractor a monthly retainer fee of [Dollar Amount].
  • Payment Schedule:
    • The Contractor shall submit invoices to the Client [Frequency, e.g., monthly]. The Client shall pay the Contractor within [Number] days of receipt of a correct invoice. Invoice format: [Describe required invoice format].
  • Expenses:
    • The Client shall reimburse the Contractor for reasonable travel and out-of-pocket expenses incurred in connection with the performance of services, subject to prior written approval from the Client. Reimbursement will follow the client's expense reimbursement policy.
  • Late Payment:
    • Late payments shall be subject to a late payment penalty as allowed under Minnesota law.

4. Tax Compliance

The Contractor acknowledges and agrees that they are an independent contractor and not an employee of the Client. As such, the Contractor is responsible for:

  • Providing a completed IRS Form W-9 to the Client.
  • Obtaining and maintaining a Minnesota Tax ID (if required).
  • Filing all necessary federal and state tax returns and paying all applicable taxes, including self-employment taxes.

5. Ownership of Work Product

All work product, intellectual property, and HR documentation created by the Contractor in connection with the services provided under this Agreement, including but not limited to policies, recruitment materials, and employee handbooks, shall be the sole and exclusive property of the Client.

6. Confidentiality

The Contractor shall maintain the confidentiality of all proprietary and non-public information of the Client, including employee data, business strategies, and financial information. The Contractor shall not disclose or use any such information for any purpose other than the performance of services under this Agreement. This includes compliance with Minnesota's employee data privacy laws.

7. Non-Solicitation and Non-Disparagement

  • Non-Solicitation:
    • During the term of this Agreement and for a period of [Number] months following its termination, the Contractor shall not solicit, directly or indirectly, any employee of the Client to terminate their employment with the Client.
  • Non-Disparagement:
    • The Contractor shall not disparage the Client, its employees, or its products or services, either during or after the term of this Agreement.

8. Compliance with Laws

The Contractor shall comply with all applicable federal, state, and local laws, rules, and regulations, including but not limited to Minnesota employment laws, anti-discrimination laws, and wage and hour laws. The Contractor shall cooperate with any investigation by the Minnesota Department of Human Rights or the Department of Labor.

9. Dispute Resolution

  • Option A: Mediation
    • Any dispute arising out of or relating to this Agreement shall be resolved through mediation in Minnesota before resorting to litigation.
  • Option B: Arbitration
    • Any dispute arising out of or relating to this Agreement shall be resolved through binding arbitration in Minnesota in accordance with the rules of the American Arbitration Association.
  • Governing Law:
    • This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. Venue for any litigation shall be in [County Name] County, Minnesota.

10. Insurance

The Contractor shall maintain the following insurance coverage:

  • Professional Liability Insurance: [Amount]
  • General Liability Insurance: [Amount]
  • [Other Insurance as Required]

The Contractor shall provide the Client with proof of insurance upon request.

11. Indemnification

The Contractor shall indemnify and hold harmless the Client from and against any and all claims, losses, damages, liabilities, costs, and expenses (including attorneys’ fees) arising out of or relating to the Contractor’s performance of services under this Agreement, including but not limited to breaches of confidentiality, professional negligence, or errors in compliance advice.

12. Term and Termination

  • Term:
    • This Agreement shall commence on [Date] and shall continue for a term of [Number] months.
  • Termination:
    • Either party may terminate this Agreement upon [Number] days written notice to the other party.
  • Transition:
    • Upon termination of this Agreement, the Contractor shall promptly return all Client property, including employee data, and shall cooperate with the Client to ensure a smooth transition of services. The final invoice will be submitted to the client within [Number] days of termination date.

13. Independent Contractor Status

The parties agree that the Contractor is an independent contractor and not an employee, partner, or joint venturer of the Client. The Contractor is not entitled to any employee benefits, including worker’s compensation or unemployment insurance.

14. 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.

15. Amendments

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

16. Assignment

This Agreement may not be assigned by either party without the prior written consent of the other party.

17. Notices

All notices under this Agreement shall be in writing and shall be deemed to have been duly given when delivered personally, sent by certified mail, or sent by email to the addresses set forth above.

18. Severability

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

19. Required Attachments

  • Data Privacy Agreement (if applicable)
  • Insurance Certificates

Signatures

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

[Client Legal Name]

By: [Client Representative Name]

Title: [Client Representative Title]

Date: [Date]

[Contractor Legal Name]

By: [Contractor Representative Name]

Title: [Contractor Representative Title]

Date: [Date]

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