Onboarding Employees and Consultants

12 aug 2021

Q: We plan to hire marketing consultants and tech developers who reside in different states. These are going to be short-term projects. Do we need a contract?

A: You will definitely need a confidentiality and technology assignment agreement. The reason for this is that you need and want to protect your business idea, plan and other confidential information and ensure your ownership of their work. Most corporate lawyers recommend that you sign this contract with them before you have them start work. It can be a one or two-page letter agreement that sets forth (i) the services they will provide, (ii) their compensation, (iii) their promise to keep your business idea, plan and any other proprietary information confidential, (iv) their transfer of ownership of the work product they produce from them to you, and (v) their confirmation they are a consultant with no employment rights. You will need to check with local labor or employment counsel in the state in which the consultant lives to make sure there are not any additional obligations that may apply. Or, engage a PEO, or Professional Employer Organization, to handle the local employment law compliance for you.