Once a startup has properly classified its worker, it should
document its relationship with the worker in order to clearly
identify the classification, compensation and benefits (e.g., base
salary, bonus, commissions, equity, PTO/vacation, signing bonus,
relocation reimbursement, and health insurance benefits), and other
terms and conditions of the arrangement.
Contractors should sign a contractor
agreement with provisions covering fees, treatment of the
startup's confidential information, assignment of the
contractor's inventions to the startup, and other basic terms.
They should not be formally or informally referred to as employees
of the startup or sign documents that the startup normally provides
to its employees, including its employee non-disclosure,
confidentiality, or invention assignment agreements, as this can
affect the nature of the contractor relationship.
