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"

Abandonment of Fictitious Business Name

A Fictitious Name Certificate is, a legal document showing the operating name of a company, as instead of the company’s registered legal name. In the case of a corporation, a fictitious business name is any name aside from the company legal name as expressed in its articles of incorporation.

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The Purpose of abandonment of business name certificate is to make available to the public a statement by persons or business entities who are no longer doing business under a previously filed fictitious business name (FBN). The abandonment of business name certificate must be filed on an active fictitious business name. When filing for an abandonment of business name certificate that contains multiple business names, you may abandon one or more of those business names. You need to publicize your statement. The FBN (fictitious business name) expires when you file for an abandonment of business name certificate.

A business and professions code of conduct follows that: (a) When a business stops transacting business in the state under a FBN that was previously filed in that state, the person who filed for the fictitious business name certificate shall be the one to file for the abandonment of business name certificate. It also furthermore states, that the certificate shall be executed in the same manner as that of the fictitious business name certificate and shall be filed with the county clerk of the county in which the person had filed for their FBN. Also a published statement for the abandonment of business name certificate shall be released in the same manner as for the fictitious business name statement and an affidavit showing that it has been publicized shall be filed with the county clerk after the completion of publication.

When filing for a certificate of abandonment of business name it should include: (b)The name being abandoned and the street address of the principal place of business. The date on that the certificate of fictitious business name relating to the fictional business name being abandoned was filed, the file number, and the county where it was filed. In the case of an individual, the full name and residence address of the individual is required. And, In the case of a husband and wife, the full name and residence address of both the husband and the wife is required. But, What about in the case of a general partnership, a limited partnership, copartners, a limited liability partnership, a joint venture, or an unincorporated association other than a partnership. In an instance such as that, then you will need the full names and residence addresses of all of the general partners. There are many other instances such as in the case of a corporation, here you will need to provide the name and address of the corporation as set forth in its articles of incorporation on file with the secretary of state. for the case of a trust, the full name and residence address of each of the trustees is required. And least but not last, for a limited liability company, here you will need the name and address of the limited liability company as set forth in its articles of organization on file with the relevant state authority. And finally, in the case of a state or locally registered domestic partners, the full name and residence address of each domestic partner is what is required filing for the Abandonment of Business Name Certificate.

When filling for the abandonment of business name certificate it is advised that your fictitious business name statement must be published in a newspaper once a week for four successive weeks and an affidavit as proof of the publication be filed with the county clerk once publication has been accomplished. The statement should be published in a newspaper of general circulation in the county where the principal place of business is located. The statement ought to be released in such county with a well-established newspaper that circulates within the surroundings of where the business is to be conducted. furthermore, any person who executes, files, or publishes any fictitious business name statement, knowing that such statement is false, in whole or in part, is guilty of a misdemeanor and might be liable to be fined.

This article explains the Certificate of Abandonment Business Name and how to apply for it. This letter and and others like it are available at the Business Own Corporation MIND Repository. 

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abandonment

əˈbandənm(ə)nt

noun

the action or fact of abandoning or being abandoned.

"she had a feeling of utter abandonment and loneliness"

Agreement of Absolute Transfer and Assignment of Accounts Receivable

This document is a lending agreement between transferee and transferor, whereby the transferee assigns accounts receivable to the transferor. In exchange for this assignment of accounts receivable, the transferee receives a loan for a percentage of the accounts receivable.

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It is common practice for companies with liquidation issues or those that want to be paid against accelerated terms to transfer, in part or in full, their accounts receivables as security in order to secure a loan. This happens in all industries. What type of impact can this have on you and your company?

First let's understand what route this contractor may take.

In the transfer and assignment of accounts receivable financial institutions will analyze the accounts receivable aging report and for each invoice that qualifies the transferee generally receives a percentage of the outstanding balance in liquid. With some transferees however, the transferor may have to transfer all of its receivables or specific receivables as collateral to secure a loan. The benefit of this arrangement is that the transferor retains ownership of the accounts as long as they make the loan payments and the transferee deals directly with the transferor. Customers may never know the transferor borrowed money against their outstanding accounts.

Let us say construction ‘company A’ is contracted by ‘company B’ and requires a secured loan, so they decided to transfer ‘company B’s accounts receivable in order to get the loan and complete the project for ‘company B’. You might think that the project owner or developer (Company B) should not care that ‘company A’ transferred their accounts receivable as long as they keep working. However, it can have an impact because lending institutions require payment to be made directly to them. Presuming that the project has a construction loan, lending institutions will not simply grant a loan to an unknown company that has not been pre-approved by them. In addition, lenders and project owners generally will not make payments without receiving a lien waiver from the payee, which the company may not be able to provide. So, if the lender does not fund, then ‘company A’ may have a basis to stop working which may delay the project.

This can be avoided, or at the very least be discouraged, by having the proper language in the transfer and assignment of accounts receivable contract. In most cases the problem is that ‘company A’ is assigning the agreement it has with ‘Company B’ to the financial/lending institution. Most contract adequately protect against this by stating that the contract cannot be transferred without the consent of the owner. Sometimes, however, this is not enough because as described above, the contract itself is not being assigned or sold, only the receivables.

I have seen some contracts use words such as: "Neither party to this Agreement shall assign the Agreement without written consent of the other" this may not prevent a ‘Company A’ from assigning the accounts receivable.

A good contract uses a more specific language such as: "Contractor shall not assign or transfer its interest in this Agreement or assign or transfer any right it may have under the same or the proceeds payable hereunder or any part hereof ..." these carefully constructed words not only prohibit the transferrable of a contract but also protects certain interests found in the agreement, which is better equipped in the event of unforeseen circumstances to prevent against the transfer and assignment of the accounts receivable.

The Business Own Corporation's MIND Repository, Agreement of Absolute Transfer and Assignment of Accounts Receivable form comes in handy for those companies who are looking to transfer and assign their accounts receivable to another party or company.

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absolute

absolute

ˈabsəluːt/

adjective

1.

not qualified or diminished in any way; total.

"absolute secrecy"

synonyms:

complete, total, utter, out-and-out, outright, entire, perfect, pure, decided;

thorough, thoroughgoing, undivided, unqualified, unadulterated, unalloyed,

unmodified, unreserved, downright, undiluted, solid, consummate,

unmitigated, sheer, arrant, rank, dyed-in-the-wool; plenary; peremptory

"there was absolute silence in the house"

2.

viewed or existing independently and not in respect to different things; not relative or comparative.

"absolute moral standards"

synonyms:

universal, fixed, independent, non-relative, non-variable, absolutist;

rigid, established, set, settled, definite, decided, irrevocable, unalterable,

unquestionable, authoritative, incontrovertible, in black and white

"absolute moral standards"

3.

noun

PHILOSOPHY

a value or principle that is considered universally valid or which may be viewed without relation to other things.

"good and evil are presented as absolutes"

transfer

transfer

verb

transˈfəː, trɑːnsˈfəː, tranzˈfəː, trɑːnzˈfəː/

1.

move from one place to another.

"he intends to transfer the fund's assets to the Treasury"

synonyms:

move, convey, shift, remove, take, carry, fetch, lift, bring, bear, conduct,

send, pass on, transport, relay, change, relocate, resettle, transplant, uproot

"the plants should be transferred into a tank"

2.

change to a different place, route, or means of transport during a journey.

"passengers have to transfer at Heathrow for onward international flights"

3.

noun

a.

an act of moving something or someone to another place, organization, team, etc.

"a transfer of wealth to the EU's poorer nations"

synonyms:

movement, move, moving, shifting, shift, handover, relocation,

repositioning, transplant, redirection, conveyance, transferral, transference,

removal, change, changeover, switch, conversion

"he got a free transfer to a Spanish team"

b.

BRITISH

a small colored image or style on paper, which can be transferred to another surface by being pressed or heated.

"T-shirts with iron-on transfers"

accounts receivable

accounts receivable

noun

1.

money owed to a company by its debtors.