Independent Contractor Acknowledgment

The Independent Contractor Acknowledgment is a contract between two parties, where one party acknowledges the other and both parties agree to terms.

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An Acknowledgement of Independent Contractor Agreement is critical when confirming the terms by which a contractor will be working under, it used to acknowledge that the contractor will not be working as an employee and that the company will not be with holding any part of their remuneration for tax or any other tax related reasons, in this contract the independent contractor also agrees to forego any employee benefits that usually awarded to employees of the company.

It should be however noted that a signed independent contractor acknowledgement form is not enough for an employer who wants to say that an employee is an independent contractor (because they a signed an Acknowledgement of Independent Contractor Agreement) whereas he is/was in fact an employee.

Contractor 'acknowledgment form' can't dictate employment status although is necessary alongside other forms to prove that the independent contractor is in not employed with your company.

You should avoid the use an Acknowledgement of Independent Contractor Agreement as an employment agreement.

such as in the case of a delivery driver, after being fired by the company he worked for. It is alleged in the lawsuit that the company terminated him because of his race, gender and age, in violation of Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act (ADEA).

After the company asked the court to dismiss the claims, as the mentioned laws only applied to employees and the plaintiff had agreed to independent contractor status (via the Acknowledgment of Independent Contractor Agreement), thus accepting responsibilities for his own fuel, equipment and tool expenses. The plaintiff, however, provided evidence that he was assigned delivery routes and had to use specific software on his phone.

The (acknowledgement of independent contractor) agreement is relevant, the court said (while refusing to dismiss the claims.), but only tells part of the story. And, under the controlling 11th Circuit's Title VII "economic realities" test, a reasonable jury could find that the plaintiff was an employee.

As this case illustrates, independent contractor acknowledgements are relevant and should be accompanied by supporting documents such as an Independent Contractor Agreement and others since the one contract is not everything. Personal preference, of the business' or a worker's, cannot dictate classification. Employers, should instead use relevant tests in order decide whether or not to classify a worker as a contractor or as employed by the company.

There is no single legal definition for determining whether individuals are employees or independent contractors. The U.S. Department of Labor (DOL) maintains one test for the Fair Labor Standards Act, while federal appellate courts have devised their own under that law.

Employers must consider applicable state and local laws. In order to classify someone as an independent contractor, the court said, businesses must show that the worker (a) is free from the control and direction of the employer; (b) performs work that is outside the their core business; and (c) customarily engages in "an independently established trade, occupation or business." The court took its “ABC” test from a standard used in 22 other states.

various tests are adopted for various laws. The National Labor Relations Board, for example, maintains a separate test for coverage under the National Labor Relations Act. And as the case mentioned in the beginning the court noted, some classification issues remain unresolved. The 11th Circuit has not given any instruction to district courts whether they should apply its test in ADEA cases, the lower court said; "Consequently, in ADEA cases, district courts must adapt other federal law tests to judge the characteristics of the parties' work relationship. Those tests include the common-law agency test, the [FLSA] economic realities test, and a blended or hybrid approach that combines the common-law agency test with 'a consideration of the ‘economic realities' of the hired party's dependence on the hiring party.'"

In this article we covered the Acknowledgement of Independent Contractor Agreement and its application, more independent contractor agreements can be accessed from the Business Own Corporation MIND Repository.

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Acknowledgement

Acknowledgement

əkˈnɒlɪdʒm(ə)nt/

noun: acknowledgment

1.

acceptance of the truth or existence of something.

"there was no acknowledgement of the family's trauma"

synonyms:

acceptance, admission, granting, allowing, concession, confession, appreciation,

recognition, realization, awareness, cognizance, knowledge;

approval of, acquiescence in, agreement with, concurrence with, respect for, cooperation with

"there was acknowledgement of the need to take new initiatives"

2.

recognition of the importance or quality of something.

Independent

  

Independent

ɪndɪˈpɛnd(ə)nt/

adjective

1.

free from outside control; not subject to another's authority.

"an independent nuclear deterrent"

synonyms:

freethinking, individualistic, unconventional, maverick;

2.

not depending on another for livelihood or subsistence.

"I wanted to remain independent in old age"

synonyms:

self-sufficient, self-supporting, self-sustaining, self-reliant, self-standing, able to stand on one's own two feet;

self-contained, self-made;

informal living on one's hump

"one has to be very careful about offering money to proud and independent old folk"

noun

1.

an independent person or body.

"one of the few independents left in the music business"

Contractor

Contractor

kənˈtraktə/

noun

1.

a person or firm that undertakes a contract to provide materials or labor to perform a service or do a job.

"the college meals service is provided by independent contractors"