North Carolina creative independent contractor agreement template
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How North Carolina creative independent contractor agreement Differ from Other States
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North Carolina applies a strict ABC test for determining contractor status, which may differ from the more flexible standards in some states.
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State-specific regulations require contractors to carry workers’ compensation insurance if they employ others, impacting agreement terms.
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North Carolina statutes mandate clear language regarding intellectual property ownership and rights for creative works produced.
Frequently Asked Questions (FAQ)
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Q: Is a written contract required for independent contractors in North Carolina?
A: A written contract is not legally required, but it is strongly recommended to avoid disputes and clarify important terms.
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Q: Does North Carolina allow non-compete clauses in independent contractor agreements?
A: Yes, but non-compete clauses must be reasonable in duration, geographic scope, and protect a legitimate business interest.
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Q: How does North Carolina define an independent contractor?
A: North Carolina uses multiple factors, including level of control, to distinguish contractors from employees, relying on the ABC test.
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North Carolina Creative Independent Contractor Agreement
This North Carolina Creative Independent Contractor Agreement ("Agreement") is made and entered into as of [Date], by and between:
[Client Legal Name], a [Client Business Structure, e.g., Corporation] with a principal place of business at [Client Address], email address [Client Email], and phone number [Client Phone] ("Client"),
and
[Contractor Legal Name], residing at [Contractor Address], email address [Contractor Email], and phone number [Contractor Phone] ("Contractor").
1. Scope of Services
The Contractor agrees to provide the following creative services to the Client:
Option A: Graphic Design. The Contractor will create [Number] logos, [Number] brochures, and [Number] website banners according to the specifications detailed in Exhibit A.
Option B: Videography. The Contractor will film and edit a [Length] video for [Purpose of Video], including scriptwriting, shooting, and post-production editing.
Option C: Writing. The Contractor will write [Number] blog posts of approximately [Word Count] words each, and [Number] articles of approximately [Word Count] words each. The subject matter will be [Subject Matter].
Option D: Web Development. The Contractor will design and develop a [Type of Website] website with [Number] pages.
- Project Scope: [Detailed Description of Project Scope]
- Service Objectives: [Measurable Service Objectives]
- Measurable Deliverables: [List of Deliverables]
- Intermediate Work Product Expectations: [Description of Work Product Expectations]
- Milestones: [List of Project Milestones]
- Deadlines: [List of Deadlines]
The Contractor will deliver work via [Delivery Method, e.g., Google Drive, Dropbox] in [File Format] format. The Client will have [Number] days to approve each draft.
2. Creative Revision Policy
The Contractor will provide [Number] revisions to the deliverables.
- The Client must submit revision requests in writing via email to [Contractor Email].
- Each revision request must clearly describe the changes needed.
- The Contractor will complete each revision within [Number] business days of receiving the request.
- Final approval of deliverables will be indicated by written sign-off from [Client Contact Person].
3. Work Schedule and Location
The Contractor will perform the services [Onsite/Remote/Hybrid]. If onsite, the location is [Address].
- Option A: The Contractor will work [Number] hours per week, Monday through Friday, from [Start Time] to [End Time].
- Option B: The Contractor has flexibility to set their own hours.
- Option C: The Contractor is required to attend meetings every [Day of the Week] at [Time].
- Equipment and software will be provided by [Client/Contractor]. Responsibility for maintenance of provided equipment lies with [Client/Contractor].
4. Fees and Payment
The Client will pay the Contractor as follows:
- Option A: [Hourly Rate] per hour.
- Option B: [Fixed Price] for the entire project.
- Option C: A retainer of [Amount] per month.
- Option D: Phased payments as follows: [Payment Schedule]
- Option E: Royalty/Commission: [Percentage]% of [Product/Service] sales.
- An initial deposit of [Amount] is due upon signing this Agreement.
- Invoices will be submitted [Frequency, e.g., weekly, monthly] with supporting documentation to [Client Contact/Department]. The Client will review invoices within [Number] days.
- Payment is due within [Number] days of invoice date. Late payments will incur interest at a rate of [Percentage]% per month, or the maximum rate allowed by North Carolina law.
- The Contractor is responsible for all applicable sales/use tax or North Carolina state tax obligations. Refer to the North Carolina Department of Revenue for guidance.
5. Expense Reimbursement
The Client will reimburse the Contractor for pre-approved expenses, including:
- Materials
- Travel (mileage at the IRS standard rate or actual expenses for other travel)
- Out-of-pocket costs
All expenses must be pre-approved in writing by the Client and documented with receipts.
6. Intellectual Property
All copyright, intellectual property rights, and work-for-hire provisions are as follows:
- Option A: All deliverables and source files will be owned by the Client. Contractor assigns all rights, title and interest in the deliverables to the Client.
- Option B: The Contractor retains ownership of the source files, but grants the Client a perpetual, non-exclusive license to use the deliverables.
- Option C: Joint Ownership. Both parties will jointly own the Deliverables, and neither party may use or modify the Deliverables without first obtaining the other party’s written consent.
- The Contractor retains ownership of pre-existing proprietary tools.
- The Contractor transfers all moral rights (if any) to the Client.
- Post-engagement rights and restrictions for both parties: [Detailed description of post-engagement IP usage rights and restrictions].
7. Confidentiality
The Contractor agrees to hold confidential all Client data, proprietary information, third-party client data, and sensitive creative concepts.
- The duration of this obligation is [Duration, e.g., indefinitely, for 5 years].
- This includes but is not limited to: [List of Confidential Information].
- The Contractor will protect trade secrets in accordance with the North Carolina Trade Secrets Protection Act (N.C. Gen. Stat. § 66-152 et seq.).
8. Non-Solicitation and Non-Circumvention
The Contractor agrees not to directly engage the Client's customers or collaborators without consent for [Number] years within [Geographic Area, e.g., North Carolina].
9. Independent Contractor Status
The Contractor is an independent contractor and not an employee of the Client.
- The Contractor is not eligible for Client benefits.
- The Contractor is responsible for all self-employment, FICA, income, and North Carolina state tax filings.
- The Contractor is responsible for obtaining any required business permits or local registrations.
10. Insurance
The Contractor shall maintain appropriate commercial general liability and professional liability (errors and omissions) insurance with minimum coverage amounts of [Amount] and [Amount], respectively. The Contractor shall provide evidence of North Carolina-compliant insurance upon request.
11. Representations and Warranties
The Contractor represents and warrants that:
- All creative work will be original and not infringe third-party IP.
- The Contractor has the authority to enter into this Agreement.
- Both parties will comply with all applicable federal, state, and local laws, including the North Carolina Unfair and Deceptive Trade Practices Act.
12. Breach of Contract
Breach of contract will be handled as follows:
- The non-breaching party must provide written notice of the breach with [Number] days to cure.
- The breaching party shall indemnify the non-breaching party for IP infringement or breach.
- Option A: The damages are capped at [Amount].
- Option B: Liquidated damages of [Amount] are payable for [Specific Breach].
13. Termination
Termination of this Agreement is governed as follows:
- Automatic termination upon completion of services.
- Option A: Either party may terminate with [Number] days written notice.
- Option B: The Client may terminate immediately for breach of contract by the Contractor.
- Events of force majeure [Specify what constitutes force majeure, recognizing standard interpretations in North Carolina] will allow for termination or suspension of services.
- Upon termination, the Client will pay for all completed work, return all materials, and the Contractor will deliver all completed or partial work.
14. Dispute Resolution
Disputes will be resolved as follows:
- Mandatory good faith negotiation.
- Option A: Mediation per North Carolina law.
- Option B: Arbitration per North Carolina law.
- Venue for any legal action will be exclusively in state or federal courts in [County Name] County, North Carolina.
- This Agreement is governed by North Carolina law.
- Option A: The prevailing party will be entitled to attorney's fees.
15. Record-Keeping and Audit
The Contractor agrees to maintain records in compliance with North Carolina business record laws. The Client has the right to audit these records upon reasonable notice.
16. Notice
Notices must be in writing and delivered as follows:
- Acceptable methods of giving written notice include electronic mail and physical delivery.
- Notice to Client: [Client Address], [Client Email].
- Notice to Contractor: [Contractor Address], [Contractor Email].
17. Assignment and Subcontracting
The Contractor may not assign or subcontract any of their rights or obligations under this Agreement without the express written consent of the Client.
18. Severability
If any provision of this Agreement is held to be invalid under North Carolina law, the remaining provisions will remain in full force and effect.
19. Marketing and Publicity
Option A: The Contractor may display work samples in their portfolio and refer to the Client.
Option B: The Contractor shall not display any work samples or refer to the Client without obtaining prior written consent from the Client.
20. Entire Agreement
This Agreement constitutes the entire agreement between the parties and supersedes all prior understandings and agreements relating to the subject matter hereof.
21. Conflict of Interest
The Contractor warrants that they do not have any conflicts of interest that would prevent them from fulfilling the terms of this agreement. The contractor will notify the client immediately in the event that a conflict of interest arises.
22. Compliance with Laws
The Contractor will comply with all applicable federal, state, and local laws, including anti-discrimination laws, accessibility requirements, and digital content regulations.
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]