Employee & Independent Contractor Agreements

The people paid by a cannabis business to perform specific jobs generally fall into two categories: independent contractors and employees. There are a few key distinctions between the two categories.

An independent contractor is not employed by the business with whom they contract. The independent contractor provides a service or product to the business, for which the business pays the contractor and does not withhold taxes.

A business exercises more control over an employee, which is a person hired to do a specific job. The business may dictate the hours the employee will work, the way the employee will present him or herself while working, and how the employee does the specific job for which they were hired. The business withholds taxes from the wages paid to the employee.

Independent contractors and employees are a source of potential liability for any cannabis business. Green Legal can protect your cannabis business by drafting employee agreements and independent contractor agreements. These written agreements are an effective way for a cannabis business to negate unnecessary liability with independent contractors and employees.

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