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.
There are a number of factors which to consider in making the decision whether people are employees or independent contractors. One of the most important considerations is the degree of control exercised by the company over the work of the workers. An employer has the right to control an employee. It is important to determine whether the company had the right to direct and control the workers not only as to the results desired, but also as to the details, manner and means by which the results were accomplished. If the company had the right to supervise and control such details of the work performed, and the manner and means by which the results were to be accomplished, an employer-employee relationship would be indicated. On the other hand, the absence of supervision and control by the company would support a finding that the workers were independent contractors and not employees.
Another factor to be considered is the connection and regularity of business between the independent contractor and the hiring party. Important factors to be considered are separate advertising, procurement of licensing, maintenance of a place of business, and supplying of tools and equipment by the independent contractor. If the service rendered is to be completed by a certain time, as opposed to an indefinite time period, a finding of an independent contractor status is more likely.
Restrictions to prevent competition by a present or former employee are held valid when they are reasonable and necessary to protect the interests of the employer. For example, a provision in an employment contract which prohibited an employee for two years from calling on any customer of the employer called on by the employee during the last six months of employment would generally be valid. Courts will closely examine covenants not to compete signed by individuals in order to make sure that they are not unreasonable as to time or geographical area.
South Dakota Self-Employed Independent Contractor Agreement with Sales Representative is a legally binding contract that establishes the relationship between an individual or company acting as a sales representative and another party engaging their services as an independent contractor in the state of South Dakota. This agreement outlines the terms and conditions under which the sales representative will perform their duties and specifies the rights and responsibilities of both parties involved. Keywords: South Dakota, self-employed, independent contractor, agreement, sales representative, contract, relationship, terms and conditions, duties, rights, responsibilities. Different types of South Dakota Self-Employed Independent Contractor Agreement with Sales Representative may include: 1. Commission-Based Agreement: This type of agreement specifies that the sales representative will receive commissions based on the sales they generate for the hiring party. The agreement outlines the commission structure, payment terms, and any additional incentives or bonuses tied to achieving sales targets. 2. Non-Exclusive Agreement: This agreement allows the sales representative to work with multiple companies simultaneously, as long as there are no conflicts of interest. It outlines the scope of the representative's activities and ensures that the hiring party is aware of and agrees to their involvement with other organizations. 3. Exclusive Agreement: In contrast to the non-exclusive agreement, this type restricts the sales representative from working for competitors or engaging in similar activities during the agreement's term. It ensures that the representative's focus and efforts are solely dedicated to the hiring party, potentially boosting sales and minimizing conflicts of interest. 4. Territory-Based Agreement: This agreement delineates the specific geographic area or territory within which the sales representative is authorized to sell the hiring party's products or services. It may include details on boundaries, target markets, and any restrictions or limitations on expanding the representative's territory. 5. Duration-Based Agreement: This type of agreement specifies the length or duration of the relationship between the sales representative and the hiring party. It typically outlines the start and end dates of the agreement and may include provisions for termination or extension. 6. Confidentiality Agreement: This agreement emphasizes the protection of proprietary or sensitive information exchanged between the parties. It includes clauses that ensure the sales representative maintains confidentiality during and after the agreement's term, safeguarding trade secrets, customer lists, marketing strategies, and any other confidential information. 7. Termination Agreement: This agreement outlines the conditions under which either party can terminate the agreement before its natural expiration. It includes provisions for notice periods, reasons for termination, and any consequences or obligations that arise upon termination. It is important for both the hiring party and the sales representative to carefully review and understand the terms and conditions of the South Dakota Self-Employed Independent Contractor Agreement with Sales Representative to ensure a clear understanding and a mutually beneficial working relationship.
