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?
When entering into a professional relationship as a licensed counselor and therapist in New York, it is crucial to have a comprehensive independent contractor agreement. This legally binding document lays out the terms and conditions between two parties: the licensed counselor and therapist (referred to as the "Contractor") and the licensed counselor and therapist practicing as a solo practitioner (referred to as the "Solo Practitioner"). The New York Independent Contractor Agreement acknowledges the autonomy of the Contractor while ensuring a mutually beneficial collaboration with the Solo Practitioner. It is important to note that there might be different types of this agreement, depending on various factors such as duration, compensation, and scope of services. Let's explore the key components that a detailed New York Independent Contractor Agreement should cover: 1. Parties Involved: Clearly identify the names, addresses, and contact details of both the Contractor and the Solo Practitioner. This section should also state the license numbers and any other relevant professional affiliations. 2. Effective Date and Term: Specify the effective date of the agreement and outline the duration of the arrangement. This may include the start and end dates, or it can be open-ended with termination provisions. 3. Scope of Services: Describe in detail the specific services the Contractor is expected to provide. This includes counseling, therapy sessions, evaluations, assessments, and any other related tasks relevant to the therapeutic practice. 4. Compensation and Billing: Outline the compensation structure, including the agreed-upon fee or percentage split for each session or service rendered. Mention if the Contractor will be responsible for their own billing or if it will be handled by the Solo Practitioner. 5. Confidentiality: Emphasize the importance of maintaining client confidentiality and complying with all applicable laws and ethical guidelines regarding privacy, records, and information security. 6. Non-Compete and Non-Solicitation: If applicable, include provisions that prevent the Contractor from engaging in similar services within a specific geographic area or soliciting clients of the Solo Practitioner for a defined period after termination. 7. Indemnification: Clarify the responsibilities of both parties in case of any liability, claims, or damages arising from the services provided by the Contractor or any breaches of the agreement terms. 8. Termination: Specify the circumstances under which the agreement can be terminated and the procedures that need to be followed. This includes notice periods, reasons for termination, and any potential consequences. 9. Governing Law and Dispute Resolution: Determine the jurisdiction applicable to the agreement, typically New York, and outline the process for resolving disputes, such as mediation or arbitration. 10. Amendments and Entire Agreement: State that any modifications or amendments to the agreement must be in writing and signed by both parties. Also, emphasize that the agreement represents the entire understanding between the Contractor and the Solo Practitioner, superseding any prior oral or written agreements. Different variations of the New York Independent Contractor Agreement may arise based on specific collaboration needs or additional legal requirements. For example, subtypes may include agreements for temporary, part-time, or project-based counseling services, each tailored to address the specific terms and expectations of the parties involved. Remember, carefully drafting and reviewing an Independent Contractor Agreement is essential to fostering a transparent and professional relationship between licensed counselors and therapists in New York.
