Yesterday's post was primarily about an agent’s authority to enter into contracts with another party. As many of you know, as a small business or startup owner there are advantages to using an independent contractor over hiring an employee. I will not go into the tax details or compliance issues here, as I do a seminar that goes into that in-depth. In addition, I covered some of those issues in a prior post. What I did want to mention today is this: while all employees are agents, not all agents are employees. Some agents may be independent contractors. Finally, agents that are not employees do necessarily have to be independent contractors.
Why is this important? The manner of the relationship is important when things go wrong, such as when there is injury or accident. Your independent contractor agreement may not fully reflect the independence of your independent contract and you may be liable for the problems they caused. Where is one of the places the law looks to see what dictates who is responsible in these situation?
Your agreement. Consider having an attorney or an expert review the provisions that deal with liability, duties, and responsibilities shifting.
*Disclaimer: This post discusses general legal issues, but does not constitute legal advice in any respect. No reader should act or refrain from acting based on information contained herein without seeking the advice of counsel in the relevant jurisdiction. Ryan K. Hew, Attorney At Law, LLLC expressly disclaims all liability in respect to any actions taken or not taken based on the contents of this post.