Independent Contractor Confidentiality Agreement

The Independent Contractor Confidentiality Agreement protects the hiring company's confidential information against free sharing.

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People and companies hire independent contractors all the time. This could be anything from cleaning services, landscaping, web design, and anything jobs requiring a short-term contract.

That said, if the independent contractor is given access to company or personal secrets, you can use an Independent Contractor Confidentiality Agreement if you don't want that information to get out.

What Is an Independent Contractor Confidentiality Agreement?

Confidentiality Agreements are not a novelty. They are routinely used to prevent valuable information from being shared unintentionally or intentionally. In employment contracts, for example, they can be found in the form of a clause.

An Independent Contractor Confidentiality Agreement can be introduced even if you already have an existing agreement. If new circumstances arose, you could ask the independent contractor to sign. 

Other Names for Independent Contractor Confidentiality Agreement

Depending on your state, an Independent Contractor Confidentiality Agreement may also be known as:

  • Independent Contractor CDA
  • Independent Contractor Confidential Disclosure Agreement
  • Independent Contractor Secrecy Agreement

Who Needs an Independent Contractor Confidentiality Agreement?

Any person or hiring entity concerned with potential leaks can use an Independent Contractor Confidentiality Agreement. Nowadays, most people and companies expect it and have no problem signing one.

Why Use 360 Legal Forms for Your Independent Contractor Confidentiality Agreement

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Create your own documents by answering our easy-to-understand questionnaires to get exactly what you need out of your Independent Contractor Confidentiality Agreement.

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How to Create an Independent Contractor Confidentiality Agreement with 360 Legal Forms

If you have a business and frequently need to hire independent contractors, the paperwork quickly adds up. It also means you should probably have a customized template to speed up this process.

Let 360 Legal Forms help with our extensive library of attorney-vetted legal forms. The process is fast and easy. All you have to do is fill out our easy-to-understand questionnaire. Once complete, simply download your form as a PDF or Word document from your secure online account.

What Information Will I Need to Create My Independent Contractor Confidentiality Agreement?

To create your document, please provide:

  • Hiring Entity: The legal name of the individual or company hiring the independent contractor.
  • Independent Contractor: The legal name of the independent contractor and contact information.
  • Effective Date: The date when the agreement goes into effect.
  • Governing Law: Identify the judicial system to be used in the event of a dispute.
  • Purpose: Describe why the deal is required.
  • Confidential Information: A detailed explanation of what constitutes confidential information in this agreement.
  • Examples: Cite examples of confidential information.
  • Duration: Designate how long the deal is to be valid and if it can be extended.
  • Additional Clauses: Any other clauses and provisions such as non-compete, non-solicitation, or non-disparagement.
  • Signatures: Both parties need to sign the agreement.

Independent Contractor Confidentiality Agreement Terms

  • Unilateral: A decision, action, or agreement affecting or arrived at by only one party
  • Bilateral: A decision, action, or deal involving or arrived at on both sides
  • Proprietary Information: Trade secrets a company wants to keep private
  • Injunction: A court order to do or to refrain from doing
  • Non-Solicitation: An agreement to not solicit the company's client or employees
  • Non-Compete: An agreement to not compete against the hiring entity
  • Indemnity: Protection against legal liability

Independent Contractor Confidentiality Agreement Signing Requirements

The Independent Contractor Confidentiality Agreement becomes valid when signed by both parties. This is enough to make it legally binding and enforceable. Notarization is not required.

What to Do with Your Independent Contractor Confidentiality Agreement

After signing, the Independent Contractor Confidentiality Agreement becomes valid, and both parties should keep a physical copy of the agreement and file it somewhere safe.

Frequently Asked Questions

There are no substantial differences between the two. It boils down to preference in most cases. However, there are subtle and rarely significant differences that are worth pointing out. The first has to do with the circumstances used. For example, Confidentiality Agreements are more common in an employer-employee relationship. And Non-Disclosure Agreements are more prevalent with vendors, suppliers, and investors. Also, Confidentiality Agreements often imply a greater degree of secrecy, to the point that a person must actively work on not disclosing the sensitive information.

An employee enters into an employment contract and receives benefits but the independent contractor does not. Also, an employer exercises more supervision over its employees, while independent contractors tend to operate with less supervision. Once again, taxation and other legal obligations are much different in that everything is a lot more relaxed for contracting. The pay can be anything acceptable, for example, without regard to minimum wage laws and such.

Confidentiality Agreements, in general, can often be challenging to enforce. Some courts will adjudge an overly restrictive Independent Contractor Confidentiality Agreement invalid. So, the key is to protect the information in question within reason.

You can't force anyone to sign anything, of course. You can explain the requirement before you hire an independent contractor, perhaps before you set the terms of the project. You may want to explain why and what that would entail. You can also highlight that you will be withdrawing your offer without a properly executed agreement. Or you can both negotiate with the help of an attorney.

NDAs exclude the following:

  • Non-proprietary information: Information that is not classified as a trade secret or owned by one of the parties.

  • Subpoenaed information: If subpoenaed by a court, a receiving party can disclose information to the authority without violating the NDA.

  • Public information: All information considered public knowledge.

  • Common knowledge: Commonly known information in the industry.

  • Previously known information: A receiving party is not required to protect information learned prior to the NDA.

Including a non-compete covenant with your NDA is a promise not to compete against the other party. This may be restricted to a particular market and location. This covenant is most commonly used between employers and employees, especially the star employees who might want to strike out on their own in the same industry. While this can be a separate document, you may also include it in the non-disclosure agreement

An injunction is a court order for one party to refrain from a certain act at the threat of contempt of court. As relates to a NDA, a court injunction would most commonly order one party to not disclose any relevant confidential information they are not supposed to share. The defendant who breaches a NDA may be ordered to pay monetary damage, but even before or after that, the claimant can petition the court for an injunction to order the defendant to not disclose the information or to refrain from disclosing any further.

The non-solicitation cluase is a covenant to refrain from using confidential information to poach clients or employees from the party that disclosed the information. While it can be a standalone document, the non-solicitation clause is often inserted into other contracts.

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