South Dakota hr independent contractor agreement template
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How South Dakota hr independent contractor agreement Differ from Other States
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South Dakota law requires strict adherence to statutory criteria to classify workers as independent contractors, which may differ from other states' standards.
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South Dakota does not mandate state income tax withholding for independent contractors, unlike states with separate income taxes.
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Unemployment insurance rules in South Dakota are unique, as independent contractors are specifically exempt from most state unemployment benefits.
Frequently Asked Questions (FAQ)
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Q: Do South Dakota HR independent contractor agreements need to be in writing?
A: While not legally required, a written agreement is strongly recommended to clearly define the contractor relationship.
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Q: Are independent contractors in South Dakota entitled to employee benefits?
A: No, independent contractors are not eligible for employee benefits such as health insurance or retirement plans.
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Q: Is state tax withheld from contractor pay in South Dakota?
A: No, South Dakota does not require state income tax withholding from payments made to independent contractors.
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South Dakota HR Independent Contractor Agreement
This South Dakota 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] with its principal place of business at [Client Mailing Address] ("Client"), and
- [Contractor Legal Name], a [Contractor Business Entity Type] with its principal place of business at [Contractor Mailing Address] (EIN: [Contractor EIN]) ("Contractor").
1. Scope of Services
- Option A: Contractor will provide the following HR services to Client:
- Recruiting and Staffing support within South Dakota.
- Background Checks consistent with South Dakota and federal employment laws.
- Employee Handbook preparation compliant with South Dakota statutes.
- Payroll Processing.
- Compensation and Benefits Administration (Contractor will not have access to Client’s benefit plans unless specifically authorized in writing).
- Training and Development programs.
- Workplace Investigations specific to local labor issues.
- Compliance Audits (ensuring adherence to South Dakota wage and hour regulations, anti-discrimination, and employment-at-will provisions).
- HR Advisory work as specified in Exhibit A.
- Option B: Contractor will provide HR services as detailed in [Exhibit name].
2. Deliverables and Reporting
- Option A: Contractor shall provide the following deliverables:
- [List specific HR deliverables, e.g., Employee Handbook draft, monthly payroll reports].
- Option B: Deliverables will be specified on a per-project basis, as agreed upon in writing.
- Contractor shall report progress on deliverables [frequency, e.g., weekly, bi-weekly] to [Client Contact Person] via [method, e.g., email, phone call].
- Performance metrics and quality standards for services are described in [Exhibit name].
3. Work Location and Hours
- Option A: Services will be performed remotely.
- Option B: Services will be performed on-site at [Client Location].
- Contractor will be available during the hours of [Start Time] to [End Time], [Days of the Week].
- In-person meetings will be scheduled as needed, with reasonable advance notice.
- Contractor will handle confidential personnel data in accordance with South Dakota privacy and recordkeeping requirements.
4. Compensation
- Option A: Client shall pay Contractor at a rate of [Dollar Amount] per hour.
- Option B: Client shall pay Contractor a fixed fee of [Dollar Amount] per project.
- Option C: Client shall pay Contractor a retainer fee of [Dollar Amount] per month.
- Contractor will submit invoices to Client [frequency, e.g., monthly].
- Client will pay invoices within [Number] days of receipt.
- Late payments may be subject to a [Percentage]% interest charge, or the maximum permitted under South Dakota law, whichever is lower.
- Contractor is responsible for all self-employment taxes and insurance.
5. Independent Contractor Status
- This Agreement creates an independent contractor relationship, and not an employment relationship.
- Contractor is responsible for all South Dakota and federal tax liabilities.
- Contractor is responsible for providing worker's compensation insurance, or explicitly elects out of worker's compensation coverage per SDCL 62-1-5.1.
- Contractor is responsible for personal liability insurance.
- Contractor shall not represent themselves as an employee or agent of Client for benefit plan eligibility or other employment purposes.
6. Intellectual Property and Record Ownership
- All materials, reports, HR forms, data compilations, training content, and confidential information developed during the course of fulfilling services are Client's property, unless otherwise agreed upon in writing.
- Contractor shall not use Client's proprietary or employee personal information except as necessary to provide services under this agreement, and in compliance with South Dakota’s confidentiality, data breach notification, and privacy statutes.
- Upon termination of this agreement, Contractor shall return all Client property and confidential information.
7. Confidentiality
- Contractor acknowledges that they will have access to confidential information related to Client's business and employees.
- Contractor agrees to hold all such information in strict confidence and not disclose it to any third party.
- Contractor will handle physical and electronic records according to South Dakota’s specific statutory requirements.
8. Non-Solicitation/Non-Compete (If Applicable)
- Option A: During the term of this Agreement and for a period of [Number] months following its termination, Contractor shall not solicit Client's employees or customers.
- Option B: During the term of this agreement, and for a period of [Number] months following its termination, Contractor shall not engage in any business that directly competes with Client within [Geographic area].
- These restrictions are intended to be reasonable and enforceable under South Dakota law (SDCL 53-9-8).
9. Legal and Administrative Investigations
- In the event of any legal or administrative investigation or subpoena involving employment records or practices, Contractor shall promptly notify Client.
- Contractor shall cooperate fully with Client in responding to any such investigation or subpoena.
10. Liability and Indemnification
- Contractor is responsible for any errors, omissions, or breaches in the performance of services.
- Contractor shall indemnify Client against any claims arising from Contractor's negligence or non-compliance.
- Contractor shall maintain professional liability insurance with a limit of [Dollar Amount].
- Client’s maximum liability under this agreement is capped at [Dollar Amount], to the extent permitted by South Dakota law.
11. Termination
- Either party may terminate this Agreement upon [Number] days written notice to the other party.
- Client may terminate this Agreement immediately for material breach or misconduct by Contractor.
- Upon termination, Contractor shall return all Client property and confidential information and invoice for services rendered up to the date of termination.
- Secure destruction or handover of confidential personnel records will occur per written instructions of Client.
12. Governing Law and Dispute Resolution
- This Agreement shall be governed by and construed in accordance with the laws of the State of South Dakota.
- Any disputes arising under this Agreement shall be resolved in the state or federal courts located in [County Name] County, South Dakota.
- Prior to initiating litigation, the parties agree to attempt to resolve any disputes through negotiation, mediation, or arbitration in South Dakota.
13. Compliance with Laws
- Contractor shall comply with all applicable South Dakota and federal HR/labor laws, including equal employment opportunity, disability accommodations, background check restrictions, and drug testing laws.
- Contractor is responsible for staying up-to-date with changes in HR-related statutory or regulatory requirements.
14. Other Provisions
- Contractor shall possess the necessary professional licenses or certifications required to perform the services outlined in this agreement, [e.g. SHRM-CP, PHR].
- Contractor shall not subcontract or delegate services without Client's prior written approval.
- Contractor shall maintain ongoing professional development in the HR field.
- Contractor is responsible for providing all necessary software and resources to perform the services.
- HR records shall be retained for a period consistent with state and federal law.
15. Standard Clauses
- Force Majeure: Neither party shall be liable for delays or failures in performance caused by events beyond their reasonable control.
- Assignment: This Agreement may not be assigned by either party without the written consent of the other party.
- Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
- Waiver: No waiver of any provision of this Agreement shall be effective unless in writing and signed by the waiving party.
- Amendment: 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.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
[Client Legal Name]
By: [Client Signature]
Name: [Client Printed Name]
Title: [Client Title, if applicable]
Date: [Date]
[Contractor Legal Name]
By: [Contractor Signature]
Name: [Contractor Printed Name]
Title: [Contractor Title, if applicable]
Date: [Date]
Exhibit A: [Exhibit Name] - Detailed Services and/or Fee Schedule