Although no definite rule exists for determining whether one is an independent contractor or employee, the main issue is the basic issue of control. The general test of what constitutes an independent contractor relationship involves which party has the right to direct what is to be done, and how and when. Another important test involves method of payment of the contractor.
An independent contractor is not an agent of the person he is contracting with. The main way to tell an independent contractor from an agent is the degree of control or supervision that the purported principal has over the agent or independent contractor. If there is no significant supervision over the contractor, there is no agency or liability for the actions of the independent contractor. An agent or an employee is different from an independent contractor. A principal or employer has control over an agent or employee, but not over an independent contractor. A principal or employer does not have control over the work performance of an independent contractor. A principal or employer is not bound by the actions of an independent contractor.
A Pennsylvania Self-Employed Independent Contractor Agreement is a legal document that outlines the terms and conditions of a business relationship between an owner/operator truck driver and a common carrier company or organization. This agreement is specifically designed for individuals in Pennsylvania who operate their own trucks and provide transportation services to the common carrier company. The agreement establishes the independent contractor status of the owner/operator truck driver, meaning that they are not an employee of the common carrier but instead run their own business. It highlights that the owner/operator has control over their own operations, including the method of performing services, scheduling, equipment maintenance, hiring of personnel, and transportation routes. The agreement includes various key provisions to ensure a clear understanding of the obligations and responsibilities of both parties. These provisions typically cover: 1. Nature of Relationship: Clearly defines the independent contractor relationship between the parties and states that no employment relationship is created. 2. Services: Outlines the specific services the owner/operator will provide, such as transportation of goods, and any additional tasks agreed upon. 3. Compensation: Details the payment terms, including rates, billing procedures, and any additional expenses the owner/operator may be entitled to, such as fuel or tolls reimbursement. 4. Insurance: Specifies the insurance requirements for the owner/operator, including liability coverage, workers' compensation, and any other necessary coverage. 5. Equipment: Addresses the condition and maintenance of the owner/operator's truck and any other equipment required for the services, as well as the responsibility for repairs and replacements. 6. Compliance with Laws: Ensures that both parties will comply with all applicable laws, rules, and regulations, including those related to safety, permits, licenses, and tax obligations. 7. Confidentiality and Non-Disclosure: Protects the confidentiality of any sensitive information shared between the parties during the course of the business relationship. 8. Termination: Outlines the circumstances under which either party can terminate the agreement, including any notice requirements or penalties. There may be different types of Pennsylvania Self-Employed Independent Contractor Agreements based on various factors, such as the duration of the agreement (short-term or long-term), the specific type of services being provided (general transportation or specialized hauling), and individual terms negotiated by the parties involved. These specific variations may include additional provisions or modify existing ones to meet the unique requirements of the owner/operator and the common carrier company or organization.
