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?
Washington Independent Contractor Agreement Between Licensed Counselor and Therapist and Licensed Counselor and Therapist Practicing as a Solo Practitioner Overview: A Washington Independent Contractor Agreement is a legally binding document that outlines the terms and conditions under which a licensed counselor and therapist engages in a professional relationship with another licensed counselor and therapist who is operating as a solo practitioner. This agreement is essential for maintaining clarity and professionalism in their working relationship, protecting both parties' rights and responsibilities. Key Elements: 1. Identification of Parties: The agreement must clearly state the full legal names of both the licensed counselor and therapist providing the services and the licensed counselor and therapist who operates as a solo practitioner. 2. Effective Date: Specify the date when the agreement comes into effect, ensuring both parties are aware of when the agreement becomes enforceable. 3. Scope of Services: Describe in detail the specific counseling and therapy services to be provided by the licensed counselor and therapist and the nature of the collaborative work between them. This may include individual counseling, group therapy, consultations, assessments, or any other specified services. 4. Term and Termination: Define the duration of the agreement, such as an initial period and any options for renewal or early termination. Include provisions outlining circumstances under which either party can terminate the agreement and required notice periods. 5. Compensation and Expenses: Clearly state the payment terms and schedules, including the rate of compensation for services rendered and any expenses that may be reimbursed. It is essential to outline how and when payments will be made. 6. Independent Contractor Relationship: Specify that both parties acknowledge and agree that the relationship between them is that of independent contractors, emphasizing that no employer-employee relationship is intended or established. 7. Confidentiality and Privacy: Address the importance of maintaining client confidentiality and privacy according to ethical guidelines and state laws. Include provisions for sharing client information only with explicit consent and taking necessary measures to protect sensitive information. 8. Intellectual Property: If there are any intellectual property rights regarding therapeutic techniques, materials, or other proprietary information, define how these will be managed, shared, or restricted between the parties involved. 9. Non-Competition and Non-Solicitation: Determine whether there are any restrictions on the licensed counselor and therapist's ability to compete with or solicit clients from the solo practitioner's practice during or after the term of the agreement. 10. Governing Law: Specify that the agreement shall be governed by the laws of the state of Washington and any legal disputes shall be resolved in the state's courts or through alternative dispute resolution methods, such as mediation or arbitration. Types of Washington Independent Contractor Agreements: While the primary focus of the agreement outlined above is for a licensed counselor and therapist working with a solo practitioner, there may be various additional types of independent contractor agreements that cater to different professional arrangements. These might include agreements between licensed counselors, therapists in group practices, or creative collaborations between professionals in the mental health field. Each type of agreement will vary to accommodate the specific needs and dynamics of the professionals involved.
