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Model clause

Arbitration clause for an independent contractor agreement

Use the People’s Court model clause in an agreement with an independent contractor. It chooses the forum, the seat, and the Federal Arbitration Act. It does not decide whether the person is an employee.

AI-only fee
5.67%$1.67 minimum
Seat
WilmingtonDelaware
Law
FAA9 U.S.C. §§ 1 et seq.
Appeal
One human appealUnless every party waives it

Where to put it

  • Put it in the contractor agreement or in a statement of work that both sides accept as part of that agreement.
  • If a master agreement already names another forum, replace it. Two dispute clauses in one relationship leave the forum unclear.
  • Pick one option in the bracketed tier sentence: AI-only, AI-assisted human, or a choice when a case is filed.
  • For a dispute that already exists, both sides can sign a submission agreement without amending the contract.

The clause to copy

Pick one option in the bracketed tier sentence. The legal text is the published People’s Court clause, not a new set of rules.

People’s Court model clause

Any dispute, controversy, or claim arising out of or relating to this agreement, or the breach thereof, shall be resolved by binding arbitration administered by People’s Court (https://peoplescourt.ai), a service of Epistemic Labs Inc., under its Rules of Procedure & Evidence in effect when the case is filed. The juridical seat is Wilmington, Delaware, regardless of any party’s residence or the physical or virtual location of the proceedings. The arbitration agreement and arbitration are governed by the Federal Arbitration Act, 9 U.S.C. §§ 1 et seq.

The parties delegate to the People’s Court Tribunal authority to decide the formation, validity, enforceability, scope, and arbitrability of this arbitration agreement. This arbitration agreement is separable from the remainder of this agreement.

The parties agree to [the AI-only tier / the AI-assisted human tier / choose the tier when a case is filed, with AI-only applying unless all parties then choose AI-assisted human]. In the AI-only tier, an AI Tribunal decides and serves the first-instance Award without human merits review before service, except that a human Arbitrator may decide a question the AI Tribunal cannot. Any human appeal is limited, proceeds on the existing Record, and follows the deferential standards in the Rules.

The parties acknowledge that People’s Court uses proprietary AI adjudication technology that is not subject to disclosure except as required by applicable law. If disclosure is required, the parties consent to appropriate protective or confidential treatment.

The operative Award is final and binding, and judgment may be entered on it in any court having jurisdiction. Where funds are held under an authorized escrow or payment mechanism for the transaction, the parties authorize disposition of those funds in accordance with the Award.

A party may initiate an arbitration at https://peoplescourt.ai/intake. The parties consent to electronic notice in accordance with the Rules, including by email and through the People’s Court Case Page where applicable. The Rules are available at https://peoplescourt.ai/rules. Filing support is available at contact@peoplescourt.ai.

General sample language only. It is not legal advice or a promise of enforceability. Review the current Rules and Terms before relying on it.

What this clause does not do

  • It does not decide whether someone is an employee or a contractor.
  • It does not add an appeal waiver. The Rules keep one human appeal unless both parties expressly waive it.
  • It is sample language, not legal advice, and not a promise of enforceability.

Common questions

Is this an employment arbitration clause?

No. It is sample language for a contract with an independent contractor. It does not decide whether someone is an employee.

What does the contractor clause decide?

Disputes arising out of or relating to the agreement go to binding arbitration administered by People’s Court, with a juridical seat in Wilmington, Delaware, under the Federal Arbitration Act. The parties name AI-only, AI-assisted human, or a choice at filing.

Can the clause live in a statement of work?

Yes, if the statement of work is part of what both sides accept. If a master agreement already names another forum, do not leave both in force. The clause migration guide describes how to replace one forum with the other.

How much does a case cost?

AI-only cases cost 5.67% of the amount in dispute, with a $1.67 minimum. AI-assisted human cases add the published base fee. The fee is shown before payment and never depends on who wins.

Is the sample legal advice?

No. It is sample language that sends the dispute to People’s Court. Read the current Rules and Terms with it.

These answers describe People’s Court procedure and general law. They are not legal advice for a particular dispute.