Texas hr independent contractor agreement template

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How Texas hr independent contractor agreement Differ from Other States

  1. Texas uses a specific test, including the 'direction or control' standard, to determine independent contractor status, differing from other states’ multi-factor tests.

  2. Texas does not require state-specific forms for contractor status, whereas some states mandate standardized agreements or filings.

  3. Certain employment law protections required in other states, such as minimum wage or benefits, generally do not apply to independent contractors in Texas.

Frequently Asked Questions (FAQ)

  • Q: Is a written agreement required for independent contractors in Texas?

    A: While not legally required, a written agreement is highly recommended to clarify the relationship and prevent disputes.

  • Q: How does Texas determine if someone is an employee or independent contractor?

    A: Texas relies on the 'right to control' test, assessing whether a business controls the details of how work is performed.

  • Q: Are Texas independent contractors eligible for employee benefits?

    A: No, independent contractors in Texas are not entitled to employee benefits like health insurance, overtime, or paid leave.

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Texas HR Independent Contractor Agreement

This Texas HR Independent Contractor Agreement (the "Agreement") is made and entered into as of [Date], by and between:
  • [Client Company Name], a [State of Incorporation] corporation with its principal place of business at [Client Company Address] ("Client"), and
  • [Contractor Name], residing at [Contractor Address] ("Contractor").

1. Services

The Contractor agrees to provide the following HR services to the Client:
  • Option A: Talent acquisition and recruiting services, including sourcing, screening, interviewing, and candidate selection for [Specific Job Titles or Departments].
  • Option B: Onboarding and offboarding processes, including preparing offer letters, conducting background checks, and managing termination procedures.
  • Option C: Drafting and updating company policies and employee handbooks to ensure compliance with Texas and federal laws.
  • Option D: Administering compensation and benefits programs, including payroll processing, benefits enrollment, and leave management. (Note: If administering health benefits, HIPAA compliance is required).
  • Option E: Guidance on FLSA, FMLA, and state labor law compliance.
  • Option F: Employee relations consulting, including conflict resolution and performance management.
  • Option G: Training and development management, including designing and delivering training programs.
  • Option H: Wage and hour audits to ensure compliance with Texas Payday Law.
  • Option I: Employee investigations, including conducting interviews and preparing reports.
  • Option J: Separation and termination guidance, ensuring compliance with Texas law.
  • Option K: Other HR advisory functions as specifically applicable to the Client’s business context: [Specific HR Advisory Functions].

2. Service Scope and Site

  • Option A: Services will be performed remotely.
  • Option B: Services will be performed at the Client's offices located at [Client Office Location].
  • Option C: Services will be performed on a hybrid basis, with [Number] days per week at the Client's offices and the remainder remotely.
    • The Contractor [Shall/Shall Not] have access to the Client's systems. If access is granted, the Contractor agrees to comply with all Client's security policies.
    • The Contractor [Shall/Shall Not] use the Client's equipment. If using Client equipment, the Contractor agrees to maintain it in good working order.
    • The Contractor [Shall/Shall Not] undergo background checks and security clearances. If required, the Contractor will cooperate with the Client's background check process.
    • The Contractor agrees to protect the confidentiality of all business and employee information in accordance with Texas Identity Theft Enforcement and Protection Act and other applicable privacy statutes.

3. Compensation

  • Option A: Hourly rate of [Dollar Amount] per hour.
  • Option B: Project-based fee of [Dollar Amount] for [Specific Project].
  • Option C: Retainer fee of [Dollar Amount] per [Month/Quarter].
  • Option D: Milestone-based payments as outlined in Exhibit A.
    • Payment Schedule: Invoices shall be submitted [Weekly/Bi-weekly/Monthly] and paid within [Number] days of receipt.
    • Invoicing Procedures: Invoices shall be submitted to [Contact Person] at [Email Address].
    • Reimbursement for Authorized Business Expenses: The Contractor will be reimbursed for pre-approved business expenses supported by receipts.
    • Texas State Tax Obligations: The Contractor is responsible for all applicable Texas state taxes.
    • Late Payment: Late payments will accrue interest at a rate of [Percentage] per month. In the event of a failure to pay, the Client will be responsible for attorney fees and recovery action.

4. Confidentiality

The Contractor agrees to hold all Client and employee information in strict confidence, including but not limited to employee records, compensation data, and business strategies. This obligation extends beyond the termination of this Agreement. The Contractor acknowledges that unauthorized disclosure of confidential information may cause irreparable harm to the Client. Specific protection is afforded to employee records per the Texas Identity Theft Enforcement and Protection Act. If benefits administration is implicated, the Contractor agrees to be bound by HIPAA requirements.

5. Intellectual Property

All custom policies, manuals, reports, and any developed templates created by the Contractor specifically for the Client shall be the exclusive property of the Client. The Contractor retains ownership of any baseline contractor materials and pre-existing intellectual property.

6. Independent Contractor Status

The Contractor is an independent contractor and not an employee, joint venturer, or partner of the Client. Nothing in this Agreement shall be construed to create an employment relationship. The Contractor is responsible for all applicable federal and Texas state taxes, unemployment insurance, workers' compensation, health insurance coverage, and business registrations, if applicable. Refer to the Texas Labor Code for guidance on independent contractor classification.

7. Representation

The Contractor shall not represent themselves as an employee or agent of the Client and has no authority to bind the Client.

8. Non-Solicitation, Non-Compete, 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 or client of the Client.
  • Non-Compete: During the term of this Agreement and for a period of [Number] months following its termination, within a radius of [Number] miles from the Client's principal place of business, the Contractor shall not engage in any business that directly competes with the HR services provided to the Client. This clause is intended to comply with the Texas Covenants Not to Compete Act.
  • Non-Disparagement: The Contractor agrees not to disparage the Client, its officers, directors, or employees, either during or after the term of this Agreement.

9. Insurance

The Contractor shall maintain appropriate business liability insurance, including professional liability/errors and omissions coverage, and provide proof of coverage to the Client upon request.

10. Indemnification

The Contractor shall indemnify and hold harmless the Client from any damages, claims, or regulatory penalties stemming from the Contractor's misconduct, data breaches, or misrepresentations, subject to Texas apportionment of liability rules.

11. Conflict of Interest

The Contractor shall disclose any potential conflicts of interest to the Client and shall resolve any conflicts in a manner that is fair and equitable to both parties.

12. Term and Termination

  • The term of this Agreement shall commence on [Start Date] and continue until [End Date].
    • Option A: This agreement can be terminated by either party with [Number] days written notice.
    • Option B: This agreement can be terminated for cause immediately upon written notice for gross misconduct, breach of confidentiality, or violation of law. Upon termination, the Contractor shall provide a final accounting, transition services as requested by the Client, and return all Client information and property within [Number] days.

13. Dispute Resolution

Any dispute arising out of or relating to this Agreement shall be resolved through good faith negotiation. If negotiation fails, the parties agree to Texas-based mediation and binding arbitration in accordance with the rules of the American Arbitration Association. Texas law and Texas state courts in [County Name] County shall have exclusive jurisdiction.

14. Compliance with Laws

The Contractor shall comply with all applicable Texas and federal employment, privacy, and discrimination laws, including but not limited to the Texas Labor Code, Texas Payday Law, Texas Privacy Act, Title VII, ADA, ADEA, and FMLA. The Contractor acknowledges they are aware of prohibited activities under USCIS/I-9 regulations if remote onboarding is included.

15. Child Support Enforcement

The Contractor acknowledges and understands the independent contractor reporting mandate to the Texas Office of the Attorney General for child support enforcement purposes.

16. Exhibits

The following exhibits are attached to and incorporated into this Agreement:
  • Exhibit A: Detailed Service Descriptions, Key Deliverables, and Timing
  • Exhibit B: Fee Rate Sheet
  • Exhibit C: Client Business Policies Relevant to Contractor Duties

17. Amendment

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

18. Workplace Safety and Ethics

The Contractor shall comply with all Client workplace safety, anti-harassment, and ethical guidelines.

19. Notices

All notices under this Agreement shall be made in writing and delivered in accordance with the Texas Uniform Electronic Transactions Act if electronic transmission is intended.

20. Severability, Waiver, and Entire Agreement

If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect. No waiver of any provision of this Agreement shall be effective unless in writing and signed by the waiving party. This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter hereof.

21. Prior Agreements

This Agreement supersedes all prior agreements regarding HR services between these parties.

22. Injunctive Relief

Each party acknowledges that a breach of the confidentiality or restrictive covenant provisions of this Agreement may cause irreparable harm to the other party, for which monetary damages may be inadequate. Accordingly, each party agrees that the other party shall be entitled to seek injunctive relief to prevent or restrain any such breach, in addition to any other remedies available at law or in equity.

23. Review and Renewal

  • Option A: This agreement will be reviewed [Annually/Bi-Annually].
  • Option B: This agreement will automatically renew for [Number] year(s) unless either party provides written notice of termination [Number] days prior to the renewal date.

24. Points of Contact

  • Client Operational Contact: [Name], [Title], [Email], [Phone Number]
  • Client Compliance Contact: [Name], [Title], [Email], [Phone Number]
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

[Client Company Name]

By: [Client Representative Name] Title: [Client Representative Title]

[Contractor Name]

By: [Contractor Name]

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