Legal Question in Employment Law in Iowa

My question involves independent contractors in the state of: Iowa

I have a contract with the staffing company and the staffing company has a contract with its client. The contract between the staffing company and its client is based on time & materials, not performance or delivery of a specific milestone. The staffing company is arguing that since its client refuses to approve time sheets it is unable to pay me for the services provided. The question of whether I'm actually an employee of the staffing company or an independent contract was raised by a senior of this forum and I have since filed Form SS-8 with the IRS seeking that determination.

I have a clause in my contract referred to as Indemnification.

Y1 and Contractor agree to indemnify, hold harmless, defend and hold the other party and their respective employees, officers, agents, subcontractors, successors, customers, and assigns harmless against any and all claims, actions and demand judgments, liabilities, damages, losses, expenses and costs (including, but not limited to, courts costs and attorney�s fees) incurred by one party for which the other party is responsible as a result of any willful or negligent acts or omissions, breach of any provision of this Agreement, or violation of any law or any third party�s proprietary rights. Y1 and Contractor agree that this right of indemnity is contingent upon provision of written notice to the other party within thirty (30) days of the first notice of the claim for which indemnity is sought.

If it becomes necessary to file a civil complaint does this clause actually limit my ability to recover legal fees?

If the IRS determines I'm an employee and not an independent contractor will that nullify the contract with the staffing co?

Thank you so much

1 Answer from Attorneys

Related Questions & Answers

More Labor and Employment Law questions and answers in Iowa

Looking for something else?