Is it legal for US companies to not renew a contract but continues to use the service of an independent contractor?

UPDATED: Oct 1, 2022

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Is it legal for US companies to not renew a contract but continues to use the service of an independent contractor?

I’m an independent contractor and my company have not renewed its contract with
me since July, but when I send them invoices, they still make payments. Is this
legal? I requested for some feedback but up to now, I haven’t received any.

Asked on October 12, 2017 under Employment Labor Law, Alaska


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

When a written contract is not renewed, it becomes a contract "at will": that is, the terms, other than duration, of the prior contract remain in effect, but either party may terminate the agreement and relationship at any time on notice. So you don't have to keep working for them if you don't want, but you may keep working if you choose; they don't have to keep employing you, but can do so if they want; and you cannot force them to sign a new contract or a renwal--rather, your only recourse would be to stop working for them, if that's what you want.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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