Updated February 20, 2022
A Minnesota independent contractor agreement is a written agreement between a contractor and the entity that hired them. When a client hires a contractor to complete a service, the contractor will determine (or negotiate) the amount of compensation that would be fair in exchange for their services. Aside from the terms of payment for services, a contractor agreement also covers such topics as taxes, insurance, expenses, licenses, workers’ compensation, and, one of the most important provisions, the contractor’s status. Since an independent contractor is not an employee, certain terms and conditions have to be established and followed. Failure to properly classify an independent contractor as such could lead to serious repercussions for the client.