An independent contractor is a person or business who performs services for another person pursuant to an agreement and who is not subject to the other's control, or right to control, the manner and means of performing the services. The exact nature of the independent contractor's relationship with the hiring party is important since an independent contractor pays his/her own Social Security, income taxes without payroll deduction, has no retirement or health plan rights, and often is not entitled to worker's compensation coverage.
Restrictions to prevent competition by a present or former employee are held valid when they are reasonable and necessary to protect the interests of the employer. For example, a provision in an employ¬ment contract which prohibited an employee for two years from calling on any customer of the employer called on by the employee during the last six months of employment would generally be valid. Courts will closely examine covenants not to compete signed by individuals in order to make sure that they are not unreasonable as to time or geographical area.
This form contains a confidentiality clause. The most important part of a confidentiality clause is the definition or description of the confidential information. Ideally, the contract should set forth as specifically as possible the scope of information covered by the agreement. However, the disclosing party may be reluctant to describe the information in the contract, for fear that some of the confidential information might be revealed in the contract itself.
Arizona Contract with Self-Employed Independent Contractor with Confidentiality Agreement and Covenant Not to Compete is a legal document designed to govern the relationship between a company or individual hiring a self-employed contractor in Arizona. This contract ensures that both parties understand their rights, obligations, and responsibilities, maintaining a professional and confidential working arrangement. The agreement typically includes the following key elements: 1. Identification of Parties: The contract begins by identifying the company or individual hiring the self-employed contractor (referred to as the "Hired") and the contractor themselves (referred to as the "Contractor"). This section includes the legal names and addresses of both parties. 2. Scope of Work: The contract outlines in detail the nature and scope of the work to be performed by the Contractor. It includes specific deliverables, milestones, deadlines, and any specific requirements or standards that need to be met. 3. Compensation and Payment Terms: This section specifies the compensation the Contractor will receive for their services, whether it is an hourly rate, a fixed fee, or a commission-based structure. It also includes details on payment methods, invoicing procedures, and any agreed-upon expenses the Contractor may be entitled to reimbursement for. 4. Duration of Agreement: The contract specifies the duration of the agreement, including the start and end dates. It may also include provisions for early termination, renewal, or extensions if mutually agreed upon by both parties. 5. Confidentiality: A critical component, this section outlines the Contractor's obligation to keep all confidential information obtained during the course of the engagement fully confidential. It may define what constitutes confidential information and the consequences of breaching this confidentiality agreement. 6. Covenant Not to Compete: In certain situations, the contract may include a section that restricts the Contractor from engaging in any business or activities that directly compete with the Hired during the contract term and for a specified duration after its termination. This section ensures that the Contractor does not utilize the knowledge gained from the engagement to harm the Hired's business interests. 7. Independent Contractor Relationship: Arizona law requires the contract to clearly state that the Contractor is an independent contractor, not an employee of the Hired. This section confirms that the Contractor is responsible for their own taxes, benefits, insurance, and compliance with applicable laws related to independent contractors. 8. Governing Law and Dispute Resolution: The contract generally includes a provision stating that it will be interpreted under Arizona law. It may also outline the preferred method of dispute resolution, such as mediation, arbitration, or litigation, should any disagreements arise between the parties. While there are no specific subtypes of the Arizona Contract with Self-Employed Independent Contractor with Confidentiality Agreement and Covenant Not to Compete, the contents mentioned above can be customized and modified to suit the specific needs of each engagement, industry, or sector.
