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?
Maryland Independent Contractor Agreement Between Licensed Counselor and Therapist and Licensed Counselor and Therapist Practicing as a Solo Practitioner In Maryland, independent contractor agreements are commonly used by licensed counselors and therapists who practice as solo practitioners. These agreements serve as legally binding contracts that outline the terms and conditions of the working relationship between the independent contractor and the hiring therapist or counselor. Key provisions typically included in a Maryland independent contractor agreement between licensed counselor and therapist and licensed counselor and therapist practicing as a solo practitioner may include: 1. Scope of Services: This section specifies the nature of the services to be provided by the independent contractor, such as therapy, counseling, or other related services. 2. Compensation: Details regarding the payment structure, frequency, and method of payment are outlined in this section. It may include hourly rates, percentage-based fees, or fixed fees for each service provided. 3. Confidentiality and Privacy: Confidentiality is of utmost importance in therapeutic settings. This provision emphasizes the contractor's responsibility to maintain client confidentiality and protect sensitive information in line with professional ethical standards and relevant laws. 4. Independent Contractor Relationship: It clarifies the independent nature of the contractor's practice, emphasizing that the contractor is not an employee and has control over their work schedule, location, and methods used to deliver services. 5. Termination Clause: This clause describes the conditions under which either party can terminate the agreement. It may include notice periods and grounds for termination, such as breach of contract, violation of professional ethics, or mutual agreement. 6. Liability and Insurance: Parties involved may address liability concerns and insurance requirements. This clause may specify the type and amount of professional liability insurance coverage required for the independent contractor. 7. Non-Competition and Non-Solicitation: If applicable, this clause may restrict the independent contractor from competing directly with the hiring therapist or counselor within a specific geographic area or soliciting their clients. Types of Maryland Independent Contractor Agreements: 1. Maryland Independent Contractor Agreement — Therapy Services: This type of agreement is suitable for licensed counselors or therapists who exclusively provide therapy services to clients in individual or group settings. 2. Maryland Independent Contractor Agreement — Counseling Services: This version of the agreement may be used by licensed counselors who focus on counseling clients dealing with various personal or emotional issues. 3. Maryland Independent Contractor Agreement — Specialized Therapy Services: Specific to therapists who specialize in a particular therapeutic approach, such as cognitive-behavioral therapy (CBT), family therapy, or trauma-informed therapy. 4. Maryland Independent Contractor Agreement — Teletherapy Services: With the rise of telehealth and online therapy, this agreement applies to independent contractors who exclusively provide virtual counseling or therapy sessions. By customizing the Maryland Independent Contractor Agreement to suit the specific needs of the licensed counselor and therapist practicing as a solo practitioner, both parties can establish clear expectations, protect their rights, and maintain a professional working relationship. It is advisable to seek legal guidance to ensure compliance with Maryland state laws and regulations.
