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.
Tennessee Self-Employed Independent Contractor Agreement with Sales Representative The Tennessee Self-Employed Independent Contractor Agreement with Sales Representative is a legal document that outlines the working relationship between a company and a sales representative who operates as an independent contractor rather than an employee. This agreement is important for businesses in Tennessee seeking to engage sales representatives on a non-employee basis, providing clarity on the rights, responsibilities, obligations, and expectations of both parties involved. The agreement starts with basic information, including the names and addresses of the company and the sales representative. It may also include details such as the start and end date of the agreement, commission or compensation structure, territories covered, and any specific products or services the sales representative will be responsible for selling. Key clauses in the Tennessee Self-Employed Independent Contractor Agreement generally include: 1. Scope of Work: This clause defines the specific duties and responsibilities of the sales representative. It may include details on tasks, targets, and performance expectations. 2. Compensation: This section outlines the agreed-upon method of compensation, usually through commissions, detailing how commissions will be calculated, when they will be paid, and any qualification criteria. 3. Non-Compete and Confidentiality: These clauses protect the company's proprietary information and trade secrets. Non-compete agreements restrict the sales representative from engaging in similar activities or working for a competitor during the contract term and for a specific period afterward. 4. Intellectual Property: This clause ensures that any intellectual property, such as trademarks, logos, or patents, remains the exclusive property of the company and prevents the sales representative from using them without authorization. 5. Termination: This section specifies the conditions under which either party can terminate the agreement, including breach of contract, non-performance, or other valid reasons. It may also outline the notice period required for termination. Different types of Tennessee Self-Employed Independent Contractor Agreements with Sales Representatives may exist based on the industry or specific requirements of the parties involved. Some examples include: 1. Real Estate Sales Representative Agreement: Tailored for individuals operating in the real estate industry, this agreement may include specific provisions related to property listing, showing, and sales procedures. 2. Pharmaceutical Sales Representative Agreement: Designed for sales representatives in the pharmaceutical industry, this agreement may address topics such as compliance with regulations, specialized training requirements, and specific knowledge or certifications required. 3. Technology Sales Representative Agreement: Pertinent to sales representatives selling technology products or services, this agreement may incorporate clauses related to software licensing, support requirements, and product training. It is crucial to consult with a qualified attorney or legal expert to customize the Tennessee Self-Employed Independent Contractor Agreement with Sales Representative to meet the particular needs and circumstances of the parties involved. By creating a clear and comprehensive agreement, both the company and the sales representative can avoid potential disagreements and ensure a mutually beneficial working relationship.Tennessee Self-Employed Independent Contractor Agreement with Sales Representative The Tennessee Self-Employed Independent Contractor Agreement with Sales Representative is a legal document that outlines the working relationship between a company and a sales representative who operates as an independent contractor rather than an employee. This agreement is important for businesses in Tennessee seeking to engage sales representatives on a non-employee basis, providing clarity on the rights, responsibilities, obligations, and expectations of both parties involved. The agreement starts with basic information, including the names and addresses of the company and the sales representative. It may also include details such as the start and end date of the agreement, commission or compensation structure, territories covered, and any specific products or services the sales representative will be responsible for selling. Key clauses in the Tennessee Self-Employed Independent Contractor Agreement generally include: 1. Scope of Work: This clause defines the specific duties and responsibilities of the sales representative. It may include details on tasks, targets, and performance expectations. 2. Compensation: This section outlines the agreed-upon method of compensation, usually through commissions, detailing how commissions will be calculated, when they will be paid, and any qualification criteria. 3. Non-Compete and Confidentiality: These clauses protect the company's proprietary information and trade secrets. Non-compete agreements restrict the sales representative from engaging in similar activities or working for a competitor during the contract term and for a specific period afterward. 4. Intellectual Property: This clause ensures that any intellectual property, such as trademarks, logos, or patents, remains the exclusive property of the company and prevents the sales representative from using them without authorization. 5. Termination: This section specifies the conditions under which either party can terminate the agreement, including breach of contract, non-performance, or other valid reasons. It may also outline the notice period required for termination. Different types of Tennessee Self-Employed Independent Contractor Agreements with Sales Representatives may exist based on the industry or specific requirements of the parties involved. Some examples include: 1. Real Estate Sales Representative Agreement: Tailored for individuals operating in the real estate industry, this agreement may include specific provisions related to property listing, showing, and sales procedures. 2. Pharmaceutical Sales Representative Agreement: Designed for sales representatives in the pharmaceutical industry, this agreement may address topics such as compliance with regulations, specialized training requirements, and specific knowledge or certifications required. 3. Technology Sales Representative Agreement: Pertinent to sales representatives selling technology products or services, this agreement may incorporate clauses related to software licensing, support requirements, and product training. It is crucial to consult with a qualified attorney or legal expert to customize the Tennessee Self-Employed Independent Contractor Agreement with Sales Representative to meet the particular needs and circumstances of the parties involved. By creating a clear and comprehensive agreement, both the company and the sales representative can avoid potential disagreements and ensure a mutually beneficial working relationship.
