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?
Cook Illinois Contract with Sales Representative as Independent Contractor to Sell Snow Removal Services in Exclusive Territory is a legal agreement between Cook Illinois, a snow removal services provider, and a sales representative who operates as an independent contractor. This contract outlines the rights, responsibilities, and terms of the professional relationship between the two parties. The contract mandates that the sales representative acts as an independent contractor and not as an employee of Cook Illinois. This ensures that the sales representative has control over their own working hours, methods, and tools, while Cook Illinois benefits from their sales expertise. The sales representative is exclusively assigned a territory where they are authorized to promote and sell Cook Illinois' snow removal services. This exclusive territory prevents any conflicts among sales representatives and allows them to focus on developing their customer base without competition from other representatives. Key elements of the Cook Illinois Contract with Sales Representative as Independent Contractor to Sell Snow Removal Services in Exclusive Territory may include: 1. Appointment and Authorization: The contract clearly states that the sales representative is appointed by Cook Illinois to represent their snow removal services within the designated territory. The representative is granted the authorization to sell these services to potential clients. 2. Independent Contractor Relationship: The contract emphasizes that the sales representative operates as an independent contractor, not an employee. This means that they are responsible for their own taxes, insurance, and other legal obligations. 3. Exclusive Territory: The contract specifies the geographical boundaries of the exclusive territory in which the sales representative may sell Cook Illinois' snow removal services. It ensures that no other representative from Cook Illinois can solicit business within this territory. 4. Sales Targets and Commission Structure: The contract may include agreed-upon sales targets for the representative, ensuring that both parties have clear expectations. It also defines how the commission will be calculated, providing a fair compensation structure based on sales performance. 5. Sales Support and Training: Cook Illinois may provide training, marketing materials, and other support necessary for the sales representative to effectively promote and sell the snow removal services. This ensures that the representative has the necessary tools to generate sales. By establishing a Cook Illinois Contract with Sales Representative as Independent Contractor to Sell Snow Removal Services in Exclusive Territory, both parties benefit from a mutually satisfactory arrangement. Cook Illinois can expand its customer base through a dedicated sales force, while the sales representative has the opportunity to earn commissions and build their own business by leveraging the unique market exclusivity granted by the contract. Alternative types of the Cook Illinois Contract with Sales Representative as Independent Contractor to Sell Snow Removal Services in Exclusive Territory may include contracts for different regions (e.g., Cook Illinois East, Cook Illinois West), contracts for specific client types (commercial/residential), or contracts with different sales representatives based on experience or partnership agreements.