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 New Jersey Independent Contractor Agreement between a licensed counselor and therapist and a licensed counselor and therapist practicing as a solo practitioner is a legally binding contract 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 in the counseling or therapy services. In New Jersey, there may be different types of Independent Contractor Agreements tailored to specific situations. Here are a few examples: 1. Independent Contractor Agreement for Clinical Counseling Services: This type of agreement is designed for licensed counselors and therapists who provide clinical counseling services to clients. It covers important aspects such as confidentiality, client records, fees and payment details, termination clauses, and the extent of liability and insurance requirements. 2. Independent Contractor Agreement for Therapeutic Services: This agreement is suitable for licensed counselor and therapist practitioners who offer a wide range of therapeutic services, such as individual therapy sessions, group therapy, family therapy, or specialized therapies like art therapy or play therapy. It will outline the specific services to be provided, scheduling, session duration, and guidelines for client interactions. 3. Independent Contractor Agreement for Remote Counseling/Teletherapy: In today's digital age, remote counseling or teletherapy services have become increasingly popular. This type of agreement is necessary for licensed counselors and therapists who offer their services through online platforms or via phone or video conferencing. It will address technology requirements, privacy and security protocols, and any legal considerations specific to remote practice in New Jersey. 4. Independent Contractor Agreement for Collaborative Therapist Services: Collaborative therapy is a unique approach where multiple therapists work together to provide integrated care to clients. This agreement would be applicable when licensed counselors and therapists form a collaborative practice and want to outline their roles, responsibilities, profit sharing arrangements, and decision-making processes. In any type of New Jersey Independent Contractor Agreement between a licensed counselor and therapist practicing as a solo practitioner, it is important to ensure compliance with relevant state laws, professional ethics guidelines, and licensing requirements. It is highly recommended seeking legal advice to customize the agreement appropriately for individual circumstances and ensure it meets all necessary provisions. Remember to always consult a qualified attorney for specific legal advice related to your situation.