Free Colorado Independent Contractor Agreement Template

A Colorado independent contractor agreement is a written contract covering the services, fee, and schedule for a self-employed worker.

Colorado gives that document unusual force. Word it correctly and the burden of proof shifts toward the worker.

A Colorado independent contractor agreement answers to two statutes at once. C.R.S. section 8-40-202(2)(b) covers workers’ compensation, while section 8-70-115 covers unemployment insurance.

The Written Document Presumption

Each statute says a written document creates a rebuttable presumption of an independent contractor relationship. The document may be the service contract itself, or a separate paper.

Both parties must sign. Under the workers’ compensation provision, all signatures must be notarized.

The Disclosure and Its Formatting

Here is the part businesses miss. The disclosure must appear in type larger than the other provisions in the document, or in bold-faced or underlined type.

It must state that the contractor is not entitled to workers’ compensation benefits. Under the unemployment statute, it must also state that the contractor is not entitled to unemployment insurance benefits unless coverage comes from the contractor or another entity. Finally, it must state that the contractor owes federal and state income tax on money earned under the contract.

The Underlying Tests

Formatting alone settles nothing. Two substantive conditions still apply.

First, the worker must be free from control and direction in performing the service. Second, that worker must be customarily engaged in an independent trade related to it. The Colorado Department of Labor and Employment administers both programs.

For the workers’ compensation presumption, yes. Section 8-40-202(2)(b) states that all signatures on such a document must be duly notarized.

That makes Colorado a genuine outlier. Most states treat notarization as optional for this kind of contract, so a document drafted elsewhere will often miss the step entirely.

Worth noting: the unemployment provision at section 8-70-115 does not carry the same notarization language. If both presumptions matter to you, follow the stricter route.

1. Draft the scope, fee, and schedule as usual.
2. Add the disclosure covering benefits and tax responsibility.
3. Format that disclosure larger, bold, or underlined.
4. Have both parties sign.
5. Take the signatures to a notary.
6. Keep the original with your project records.

Beyond the disclosure, a Colorado independent contractor agreement should give attention to:

• Freedom from control — results specified, methods left alone.
• Independent trade — the contractor’s other clients and business identity.
• Tools and materials — supplied by the contractor.
• Payment — by project or milestone.

A Colorado attorney can confirm your disclosure wording meets both statutes before you rely on it.