Independent Contractor Agreement Attorneys in Houston

Drafting, Reviewing & Negotiating Legal Contracts for Independent Contractors in Texas 

If you hire independent contractors or work as one, a well-drafted independent contractor agreement is one of the most important legal contracts for your business.

As an independent contractor law firm with more than 35 years of experience, Hendershot Cowart P.C. drafts and reviews hundreds of business agreements every year and routinely help our clients settle contract disputes. This experience gives us insights into the loopholes and weak points that others may try to leverage against your business – insights we can apply to your independent contractor agreement.

On This Page:

• What Is an Independent Contractor Agreement?
• Independent Contractors vs. Full-Time Employees
• Legal Services for Houston Employers
• Legal Services for Houston Contractors
• Independent Contractor Agreements for Physicians
• A Note on Independent Contractor Classification Analysis
• Proposed Changes to the Independent Contractor Classification Rule (2026)

Ready to have an independent contractor agreement reviewed or drafted? Call (713) 783-3110 or contact our Houston-based attorneys online today to get started.

What Is an Independent Contractor Agreement?

An independent contractor agreement is a legal contract that outlines the terms and conditions of a working relationship between a business (the client) and an independent contractor (the freelancer or service provider). It essentially spells out the expectations for both parties and helps avoid misunderstandings or disagreements down the road.

Here are some key elements of a typical independent contractor agreement:

• Scope of Work: This clearly defines the specific services or projects the independent contractor will perform for the client.
• Payment Terms: The agreement outlines how much the contractor will be paid, the payment schedule, and the method of payment (e.g., hourly rate, fixed fee, etc.).
• Deliverables and Deadlines: This section specifies what the contractor is expected to deliver and by when.
• Independent Contractor Classification: The agreement clarifies that the contractor is classified as an independent contractor, not an employee. This has tax implications for both parties.
• Ownership of Work: The agreement specifies who owns the intellectual property rights to any work created by the contractor during the project.
• Confidentiality: This clause may be included if the contractor will be exposed to any confidential information or trade secrets of the client.
• Non-Solicitation Agreement: This clause may prohibit the contractor from soliciting the client's employees, customers, or business relationships for a defined period after the engagement ends – protecting the client's workforce and customer base from being poached.
• Non-Compete Agreement: This clause may restrict the independent contractor from working with direct competitors or starting a competing business. To be enforceable in Texas, the non-compete agreement must be part of a valid contract, supported by consideration (such as confidential information, trade secrets, customer goodwill, or specialized training), and contain reasonable limitations as to time, geographic area, and scope of activity.
• Term and Termination: The agreement outlines the duration of the project or contract and the process for termination by either party.
• Dispute Resolution: This section details how any disagreements arising from the contract will be addressed (e.g., negotiation, mediation, arbitration).

Independent Contractors vs. Full-Time Employees

The key difference between an independent contractor and a full-time employee boils down to control and how the work relationship is structured. 

Typically, a worker can be considered an independent contractor if:

• They control their own hours, choose their tools and methods, and can take on work from multiple clients.
• They are responsible for self-employment taxes (Social Security and Medicare) on their earnings.
• They are hired for a specific project or task under a contract. The relationship ends when the project is completed or the contract expires. There's no guarantee of ongoing work.
• The specific aspects of how to complete a job duty are up to the worker.

By contrast, a worker is a full-time employee if:

• The worker is subject to the company's policies, supervision, and work schedule.
• They are eligible for employee benefits, and the employer withholds income taxes, Social Security, and Medicare taxes from the employee's paycheck.
• They are hired for an ongoing position within the company. There's usually an expectation of a longer-term commitment, although employment can still be terminated by either party.
• They typically use company equipment and resources to complete their job duties.

Independent Contractor Agreement Drafting and Review for Houston Employers

If you routinely bring on independent contractors to undertake certain tasks or complete “gig” work, let the contract attorneys at Hendershot Cowart P.C. help ensure that your business is protected. 

Some common legal risks we can help you avoid include:

• Misclassification. The more control you exert over how the worker performs their job, the more likely it is that they will be considered an employee. Our attorneys will help you draft an independent contractor agreement that clearly defines the scope of work and the deliverables so you can step back and know that your business needs will be met without dictating the means and methods.
• Liability. Independent contractors are not covered by your company’s workers’ compensation insurance. This means that if they are injured on the job, you could be liable for their medical bills and lost wages. To avoid this risk, your independent contractor agreements should require contractors to carry their own liability insurance.
• Intellectual property rights. Our attorneys ensure your independent contractor agreements include clear intellectual property assignment clauses so that all work product – from software to creative content – belongs to your business.

We have experience with a range of Texas industries – including construction, manufacturing, oil and gas, healthcare, agriculture, transportation, and more – and understand how nuances in these industries can impact a work contract. Whether you need to draft, review, negotiate, or implement new independent contractor agreements, make us your first choice of legal counsel.

Independent Contractor Agreement Lawyers for Houston Contractors

Before you sign an independent contractor agreement, call Hendershot Cowart P.C. at (713) 783-3110. Our Houston-based independent contractor agreement lawyers can:

• Review your agreement for loopholes, red flags, and ambiguous terms that could leave you at a disadvantage or at risk of contract disputes.
• Negotiate changes, such as better rates or kill fees, on your behalf.
• Draft a binding and detailed independent contractor agreement tailored to your business and for each major project, if necessary.
• Help you establish a legal entity, such as an LLC, to help shield your personal assets from professional liability.
• Litigate, arbitrate, or mediate breach of contract disputes as quickly and efficiently as possible.

Houston Physician Independent Contractor Agreement Attorney

Many licensed healthcare professionals, including physicians, physician assistants, and nurses, enter into independent contractor agreements. As an independent contractor, you are not an employee but rather work with a hospital, private practice, or group practice as a “freelance” healthcare professional. 

Locum tenens assignments also usually involve an independent contractor agreement. 

As a business and healthcare law firm, we unite the expertise needed to draft and review enforceable physician independent contractor agreements that comply with both business and healthcare laws and regulations at the state and federal level—including Texas’ prohibition against the Corporate Practice of Medicine. 

We can guide you away from red flags and ambiguities that could stall or limit your career and help you evaluate your compensation structure to determine whether you are paid fairly based on your geographic region, experience, and specialty. We can also help ensure that verbal agreements made during the recruitment process are clearly reflected in writing.

Here are a few of the questions the healthcare attorneys at Hendershot Cowart P.C. consider when reviewing a physician agreement:

• Is this arrangement in compliance with federal healthcare regulations such as False Claims Act (FCA), Anti-Kickback Statute (AKS), Stark Law, and EKRA?
• What are the duties and responsibilities? Are there on-call duties? How will on-call duties be assigned? 
• Who will pay for medical malpractice insurance? Is there tail coverage? 
• How long will the agreement be in place? What are the provisions for termination? 
• If it’s a research engagement, who will own any intellectual property or patents?
• How will contract disputes be resolved? 
• Is there indemnity for intentional acts or negligence that expose the other party to liability? 
• If there is a non-compete agreement, is it in compliance with existing state and federal rules and regulations? Note that since September 1, 2025, Texas law (SB 1318) imposes additional restrictions on non-competes for physicians, dentists, physician assistants, and nurses – including a one-year maximum duration and a five-mile geographic limit.

Protect your career from ambiguous or overly restrictive independent contractor agreements by seeking an attorney’s counsel before you sign. Agreements that limit your independent medical judgment or leave physician responsibilities to the hiring entity’s “sole discretion” can cause trouble in the working relationship, leading to disputes and possibly litigation or arbitration.

Call (713) 783-3110 or contact us online to speak with our attorneys about a physician independent contractor agreement review, compensation analysis, or our negotiation services.

A Note on Independent Contractor Classification Analysis

Entering into an independent contractor agreement with a worker does not automatically establish an independent contractor relationship.

On January 10, 2024, the U.S. Department of Labor published a final rule, effective March 11, 2024, revising the Department’s guidance on how to analyze who is an employee or independent contractor under the Fair Labor Standards Act (FLSA).

This new rule includes six factors to determine what the DOL refers to as the “economic reality” of the working relationship. The six factors are:

1. Does the worker have an opportunity for a profit or loss based on their own initiative or judgment? If a worker determines their own rates, can accept or decline jobs at their discretion, and engages in marketing or advertising to expand their business, this suggests the worker is an independent contractor.
2. Are any investments by the worker capital or entrepreneurial, i.e., is the worker investing in equipment, supplies, and/or marketing to improve their business, or as a requirement of the employer? The latter might indicate an employee-employer relationship.
3. Is the work relationship project-based, non-exclusive, and limited in duration? That would suggest an independent contractor classification.
4. Does the potential employer have control over the worker’s performance? For example, does the employer set the worker's schedule, reserve the right to supervise or discipline the worker, or set rates for the worker’s services? This would weigh in favor of an employee-employer relationship.
5. Is the work performed an integral part of the potential employer's business? A worker doing tasks essential or critical to a company's principal business is more likely to be classified as an employee.
6. Does the worker use specialized skills to perform the work, and does the worker use their own initiative to market those skills? If a worker brings specialized skills to the work relationship, this alone does not indicate independent contractor status unless the worker also markets their own skills to obtain work from multiple companies.

The attorneys at Hendershot Cowart P.C. can draft an independent contractor agreement that clearly outlines the terms of the working relationship to help prevent misclassification claims.

Proposed Changes to the Independent Contractor Classification Rule (2026)

The regulatory landscape governing independent contractor classification is currently in flux. On February 26, 2026, the U.S. Department of Labor (DOL) announced a proposed rule that would rescind and replace the Biden-era 2024 rule described above. The proposed rule was published in the Federal Register on February 27, 2026; the public comment period is open through April 28, 2026.

What the Proposed Rule Would Change

The proposed rule would replace the Biden administration’s six-factor test with a streamlined “economic reality” test. The proposed rule centers on two core factors:

1. Nature and degree of control over the work. To what extent does the individual, rather than the potential employer, control how the work is performed, including scheduling, workload, selection of projects, and the ability to work for others (including competitors)?
2. Opportunity for profit or loss based on initiative or investment. Does the worker have the ability to earn more or less based on their own business decisions, such as setting rates, marketing their services, or capital investments?

In addition to these two core factors, the proposed rule identifies three supplemental factors that may further inform the classification analysis:

1. Skill required. Does the work require specialized training or skill that the worker independently brings to the relationship?
2. Degree of permanence of the working relationship. Is the engagement project-based and finite, or does it suggest an ongoing, indefinite relationship more akin to employment?
3. Whether the work is part of an integrated unit of production. Is the individual’s work a component of the hiring entity’s core business operations or production process? This suggests economic dependence.

The two “core” factors will typically carry greater weight than other factors.

The Federal Rulemaking Process: What Happens Next

The proposed rule is not yet final. The public comment period runs through April 28, 2026, during which businesses, contractors, and other interested parties may submit written comments to the DOL via regulations.gov. After the comment period closes, the DOL must review and respond to substantive comments before publishing a final rule in the Federal Register – a process that can take several months to over a year. If significant new issues arise from public comments, the agency may issue a supplemental proposed rule and open an additional comment period before finalizing.

What The Proposed Rule Means for Texas Businesses and Independent Contractors

Until a final rule is published and takes effect, the 2024 Biden-era six-factor test remains the operative federal standard. Businesses and contractors should not assume the proposed rule is already in effect. However, the DOL has indicated it will no longer actively enforce the 2024 rule while the new rulemaking is pending – a position it announced in May 2025.

Given this uncertainty, now is an important time to review existing independent contractor agreements and classification practices. Whether the new rule is ultimately adopted as proposed, modified, or challenged in court, the core question – whether a worker is economically dependent on the hiring entity or genuinely in business for themselves – will remain central to the analysis. Well-drafted agreements that clearly reflect the nature of the working relationship are your best protection against misclassification claims, regardless of which regulatory framework applies.

The attorneys at Hendershot Cowart P.C. can draft an independent contractor agreement that clearly outlines the terms of the working relationship to help prevent misclassification claims.

Work with a Trusted Independent Contractor Law Firm in Houston, Texas

From drafting new agreements to defending or pursuing breach of contract claims, the independent contractor agreement attorneys at Hendershot Cowart P.C. are ready to put your mind at ease with a sound and thorough legal review of your agreement. 

Why choose our team? We have been reviewing business agreements and resolving contract disputes in Texas and beyond for more than 30 years. We deliver the same sophisticated legal expertise as the biggest firms in Texas, but we know your name, your business, and your goals. And as a Texas business ourselves, we take a vested interest in our clients' success – from start to finish. 

For an initial consultation or contract review, call (713) 783-3110 at any time.