From the course: Contracting for Creatives

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What, exactly, does “for hire” mean?

What, exactly, does “for hire” mean?

From the course: Contracting for Creatives

What, exactly, does “for hire” mean?

- Now that we understand what a work for hire agreement is, how do we know that we're for hire and not employees, and why the distinction important at all? This may seem like an odd idea, but the fact of the matter is that there are certain situations in which the courts and the IRS will determine, in their infinite wisdom, that you are actually an employee and all of your work belongs to your employer. Clearly, this is important if you expect to keep any of your intellectual property at all. The IRS uses a multi-factor test to determine whether a person is an employee or independent contractor. In general, the more control your client has over how, when, and where you work, the more likely you are to be classified as employee, regardless of how you and your client characterize the relationship. In accord with IRS rules and case law, the courts must consider multiple factors to evaluate the level of control a client has over a freelancers work. Under those factors, generally a…

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