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This tutorial discusses employment contracts and independent contractor agreements, highlighting their prevalence in the U.S. Each state has its own regulations governing these contracts. An employment contract outlines the scope of work, duration, and various obligations, such as insurance. A key focus is on the enforceability of clauses, particularly covenants not to compete and restrictions on using confidential information or client-related data generated during employment. Inspectors often inquire about these terms to ensure compliance. The tutorial emphasizes the importance of understanding and structuring these contracts properly for both parties involved.