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?
North Dakota Independent Contractor Agreement Between Licensed Counselor and Therapist and Licensed Counselor and Therapist Practicing as a Solo Practitioner: A Comprehensive Guide Introduction: In North Dakota, independent contractor agreements play a vital role in formalizing the working relationship between licensed counselors and therapists practicing as solo practitioners. These agreements outline essential terms and conditions, rights, and responsibilities of both parties involved. By understanding the different types of independent contractor agreements available, counselors and therapists can ensure they have a solid legal foundation in their professional endeavors. Key Elements of an Independent Contractor Agreement: 1. Identification of Parties: The agreement should clearly identify the contracting parties, including the names and addresses of the licensed counselor and therapist, as well as their solo practitioner practice details. 2. Scope of Work: This section defines the specific services the contractor will provide and outlines the therapist's area of expertise and the counselor's role in the practice. 3. Term and Termination: The agreement must specify the agreement's duration or the project's expected completion timeline. Additionally, it should outline the circumstances under which either party can terminate the agreement, such as breach of contract or non-performance. 4. Compensation and Payment Terms: This section addresses the payment structure, including the contractor's fees, payment schedule, and any additional expenses that may arise during the provision of services. 5. Confidentiality and Privacy: As counselors and therapists handle sensitive client information, it is crucial to include confidentiality clauses to protect both client and practitioner privacy. This section should outline the responsibilities and obligations related to confidentiality, data protection, and HIPAA compliance. 6. Independent Contractor Status: Clearly stating that the licensed counselor and therapist are independent contractors is vital to the agreement. This clarifies the absence of an employer-employee relationship and emphasizes the contractor's responsibility for their taxes, benefits, and liability insurance. 7. Non-Competition and Non-Solicitation: If applicable, the agreement might include clauses preventing the contractor from competing with the solo practitioner's practice or soliciting clients. Types of North Dakota Independent Contractor Agreements: 1. Traditional Independent Contractor Agreement: This agreement caters to licensed counselors and therapists who contract with a solo practitioner and provide specialized services under their guidance. They typically work within the solo practitioner's established practice. 2. Collaborative Independent Contractor Agreement: This agreement involves two or more licensed counselors and therapists practicing as solo practitioners who join forces providing comprehensive services to their collective client base. Collaboration allows for shared resources, costs, and workload distribution. 3. Project-Based Independent Contractor Agreement: In certain cases, licensed counselors and therapists may collaborate on a specific project, such as research, treatment program development, or community outreach. This agreement provides a structured approach and delineation of roles and responsibilities for the duration of the project. Conclusion: North Dakota independent contractor agreements between licensed counselors and therapists and licensed counselors and therapists practicing as solo practitioners provide a legal framework to solidify working relationships. By considering the key elements and understanding the various types of agreements available, professionals in the mental health field can ensure clarity, protection, and stability in their solo practice ventures. Seeking legal advice from an attorney experienced in healthcare law is highly recommended when drafting or signing these agreements to ensure compliance with North Dakota regulations.
