Free Arizona Independent Contractor Agreement Template

An Arizona independent contractor agreement is a written contract between a business and a self-employed worker. It sets out the work, the pay, and the deadline.

Arizona adds one wrinkle, though, and it helps to know it early. State law here describes two different written documents. Each one helps show that a worker is a contractor rather than an employee.

So you may need one of them, or both. The sections below explain what each covers.

An Arizona independent contractor agreement is never filed with the state, and it needs no notary. Filing is not the point here, though.

Each of the two documents creates what the law calls a rebuttable presumption. In plain terms, a worker counts as a contractor unless someone shows otherwise. That is strong protection rather than a guarantee.

The Declaration of Independent Business Status

A.R.S. section 23-1601 sets out a declaration of independent business status, shortened to DIBS. The contractor signs and dates it. Its wording must substantially comply with the form written into the statute.

Two things then have to happen. The contractor executes a compliant declaration, and the contracting party acts in a manner substantially consistent with it. That combination creates a rebuttable presumption of an independent contractor relationship.

Signing remains optional, though. Subsection D confirms that no contractor must execute one to hold that status. Failing to sign creates no presumption either, and under subsection A it is not admissible to deny the relationship.

Content in the form covers familiar ground. The contractor runs an independent business, carries their own tax liability, and holds any registrations the services require. Coverage under the contracting party’s health or workers’ compensation insurance is expressly excluded, and nothing stops them taking work elsewhere.

The Workers’ Compensation Written Agreement

A.R.S. section 23-902, subsection D describes something different. This agreement must evidence that the business lacks authority to supervise or control the actual work.

It also needs a disclosure statement that the contractor is not entitled to workers’ compensation benefits from the business. With that in place, a rebuttable presumption of contractor status arises. Once a fully completed agreement reaches the carrier, it may collect no premium on payments to the contractor.

Subsection F matters too. Consent obtained through misrepresentation, false statements, fraud, or intimidation makes the agreement null and void.

Possibly, and the statute answers this directly. Subsection E of section 23-1601 states that a declaration does not substitute for a written agreement under section 23-902, subsection D.

The two tracks stay separate. A Phoenix marketing agency holding a signed declaration has not thereby settled its workers’ compensation position. Likewise, a Tucson builder with a section 23-902 agreement has not secured the broader presumption.

1. Decide which document your situation calls for, or whether both apply.
2. Draft the services, fee, and schedule to match how the work will really run.
3. Keep supervision language away from methods and process.
4. Have the contractor personally sign and date any declaration.
5. Submit a completed section 23-902 agreement to the carrier where premium is at stake.
6. Then act consistently with whatever you signed.

Because a declaration form appears in statute, an Arizona independent contractor agreement carries more wording risk than a typical contract. Substantial compliance with that form is the standard.

Give particular attention to:

• Independence of methods — the contractor decides how and when, within agreed quality standards.
• Insurance and tax responsibility — clearly assigned to the contractor.
• Freedom to serve other clients — stated outright, not implied.
• Tools and expenses — carried by the contractor.

Misclassification disputes get expensive fast. An Arizona employment attorney is a sensible stop for anything unusual.