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?
A Minnesota Independent Contractor Agreement between licensed counselors and therapists practicing as solo practitioners is a legal document that outlines the terms and conditions of their professional relationship. This agreement is crucial for establishing clear expectations, responsibilities, and protections for both parties involved. Keywords: Minnesota, Independent Contractor Agreement, licensed counselor, therapist, solo practitioner In Minnesota, licensed counselors and therapists often choose to practice independently as solo practitioners. This arrangement allows them to have control over their practice and potentially increase their earnings. However, it also means taking on additional responsibilities related to administration, marketing, and liability. To ensure a smooth working relationship, it is essential for a licensed counselor and therapist practicing as a solo practitioner in Minnesota to have a well-drafted Independent Contractor Agreement in place. This agreement serves as a legally binding contract that governs the terms and conditions between the counselor/therapist and the independent contractor. There can be different types of Independent Contractor Agreements depending on the specific provisions necessary for each situation. Some key factors that may vary between agreements include compensation structure, termination clauses, non-compete clauses, and confidentiality agreements. Compensation Structure: The agreement will outline how the licensed counselor/therapist will be compensated for their services. This may involve a flat fee per session, an hourly rate, or a percentage of the revenue generated by the counselor/therapist. Termination Clauses: Termination clauses are crucial to address the circumstances under which either party can terminate the agreement, including notice periods and the possible grounds for termination. A licensed counselor/therapist may need to specify if termination can occur for convenience or only for cause. Non-Compete Clauses: These clauses prevent a licensed counselor/therapist from practicing within a specified geographic area or for a specific time period after the termination of the agreement. This helps protect the interests of the solo practitioner by preventing the independent contractor from competing directly with them. Confidentiality Agreements: These agreements establish the obligation of both parties to maintain the confidentiality of client information and ensure that proprietary knowledge or trade secrets are not disclosed to third parties. It's important for licensed counselors and therapists in Minnesota to adapt the Independent Contractor Agreement to their specific needs and consult with legal counsel if necessary. This will help ensure that all legal requirements are met and protect the interests of both the independent contractor and the solo practitioner.
