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?
An Oregon Independent Contractor Agreement is a legally binding contract entered into between a licensed counselor or therapist and a solo practitioner. This agreement outlines the terms and conditions under which the independent contractor will provide counseling or therapy services to the solo practitioner. In Oregon, there may be different types of Independent Contractor Agreements between licensed counselors and therapists and those practicing as solo practitioners, such as: 1. Standard Independent Contractor Agreement: This agreement establishes the relationship between the licensed counselor or therapist and the solo practitioner. It outlines the scope of services to be provided, compensation, confidentiality agreements, termination provisions, and any other relevant terms. 2. Non-Compete Independent Contractor Agreement: This type of agreement may be used when the solo practitioner wants to restrict the licensed counselor or therapist from practicing independently or with other solo practitioners within a specified geographic area for a certain period. This ensures the solo practitioner's client base remains intact and protected. 3. Termination Independent Contractor Agreement: This agreement specifies the conditions and procedures for terminating the independent contractor relationship. It outlines the notice period, reasons for termination, and any potential consequences or liabilities. 4. Intellectual Property Independent Contractor Agreement: In certain cases, the solo practitioner and the independent contractor may want to outline ownership rights and usage of intellectual property developed during their collaboration, such as therapy techniques, treatment plans, or written materials. This agreement ensures proper attribution and protection of intellectual property rights. The Oregon Independent Contractor Agreement between licensed counselors and therapists and solo practitioners is crucial for establishing a clear understanding of roles, responsibilities, and expectations. It should comply with Oregon state laws and regulations governing the practice of counseling and therapy. It is recommendable that both parties seek legal counsel to draft or review this agreement to ensure compliance and protection of their interests.