An independent contractor is a person or business who performs services for another person pursuant to an agreement and who is not subject to the other's control, or right to control, the manner and means of performing the services. The exact nature of the independent contractor's relationship with the hiring party is important since an independent contractor pays his/her own Social Security, income taxes without payroll deduction, has no retirement or health plan rights, and often is not entitled to worker's compensation coverage. The traditional tests to determine whether a worker is an employee or independent contractor involve the concept of control. The Internal Revenue Service (IRS) developed 20 factors used to determine whether a worker is an independent contractor under the common law. A "yes" answer to any of these questions would be evidence of an employer-employee relationship.
" Does the principal provide instructions to the worker about when, where, and how he or she is to perform the work?
" Does the principal provide training to the worker?
" Are the services provided by the worker integrated into the principal's business operations?
" Must the services be rendered personally by the worker?
" Does the principal hire, supervise and pay assistants to the worker?
" Is there a continuing relationship between the principal and the worker?
" Does the principal set the work hours and schedule?
" Does the worker devote substantially full time to the business of the principal?
" Is the work performed on the principal's premises?
" Is the worker required to perform the services in an order or sequence set by the principal?
" Is the worker required to submit oral or written reports to the principal?
" Is the worker paid by the hour, week, or month?
" Does the principal have the right to discharge the worker at will?
" Can the worker terminate his or her relationship with the principal any time he or she wishes without incurring liability to the principal?
" Does the principal pay the business or traveling expenses of the worker?
A "yes" answer to any of these questions would be evidence of an independent contractor relationship.
" Does the worker furnish significant tools, materials and equipment?
" Does the worker have a significant investment in facilities?
" Can the worker realize a profit or loss as a result of his or her services?
" Does the worker provide services for more than one firm at a time?
" Does the worker make his or her services available to the general public?
In the District of Columbia, a licensed counselor and therapist may choose to enter into an independent contractor agreement when practicing as a solo practitioner. This agreement serves as a legally binding contract between the licensed counselor and therapist, outlining the terms and conditions of their arrangement. The District of Columbia Independent Contractor Agreement Between Licensed Counselor and Therapist and Licensed Counselor and Therapist Practicing as a Solo Practitioner sets forth the rights and responsibilities of both parties involved. It establishes the nature of the working relationship, outlining that the licensed counselor and therapist are operating as independent contractors and not as employees. The agreement covers various aspects essential for a smooth working relationship, such as compensation, confidentiality, and scope of services. It outlines the payment structure, including the method and frequency of payment. Additionally, it addresses how expenses, such as office space rental and supplies, will be handled. Confidentiality provisions are crucial in this agreement, as they ensure the protection of client information and maintain client confidentiality. The licensed counselor and therapist must adhere to the District of Columbia's laws and regulations regarding privacy and confidentiality. The scope of services section defines the types of therapy or counseling services that the licensed counselor and therapist will provide. It may include individual therapy, group therapy, couples counseling, and other specialized treatments. Depending on the specific needs of the licensed counselor and therapist and the clients they serve, there may be different types of District of Columbia Independent Contractor Agreements, such as: 1. District of Columbia Independent Contractor Agreement for Single Specialty: This agreement is tailored for licensed counselors and therapists who focus solely on a specific area, such as substance abuse counseling, trauma therapy, or family counseling. 2. District of Columbia Independent Contractor Agreement for Multi-Specialty: This agreement caters to licensed counselors and therapists who have expertise in multiple areas of therapy or counseling. It allows them to provide a broader range of services to clients. 3. District of Columbia Independent Contractor Agreement for Teletherapy: This agreement is designed for licensed counselors and therapists who offer remote counseling services, using technology platforms such as video calls or phone sessions. It includes provisions specific to teletherapy, ensuring compliance with relevant laws and regulations. By adhering to the District of Columbia Independent Contractor Agreement, licensed counselors and therapists can establish clear expectations and guidelines for their work as solo practitioners. It allows them to maintain autonomy while providing therapeutic services to their clients in a professional and ethical manner.