An independent contractor is a person or business who performs services for another person under an express or implied agreement and who is not subject to the other's control, or right to control, the manner and means of performing the services. The person who hires an independent contractor is not liable to others for the acts or omissions of the independent contractor. An independent contractor is distinguished from an employee, who works regularly for an employer. The exact nature of the independent contractor's relationship with the hiring party is important since an independent contractor pays their 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. No one factor is controlling, and the characterization of the relationship by the parties is also not controlling.
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. Whether or not such control was exercised is not the determining factor, it is the right to control which is key.
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.
Also, an independent contractor is more likely to be subject to the risk of taking a profit or loss in the work performed. An employee is generally paid on an hourly, salary, or commission basis, whereas an independent contractor is ordinarily paid an agreed amount, or according to an agreed formula, for a given job.
South Dakota Agreement Between Self-Employed Independent Contractor and Owner of Mobile Tire Repair Service to Drive the Mobile Tire Repair Truck, and Repair Tires Description: The South Dakota Agreement Between Self-Employed Independent Contractor and Owner of Mobile Tire Repair Service is a legally binding contract that outlines the responsibilities, terms, and conditions agreed upon by both parties involved in the mobile tire repair business. This agreement establishes a relationship between the independent contractor and the owner of the mobile tire repair service, ensuring clarity in expectations and obligations. It is essential to have such an agreement to ensure a smooth operational process and avoid any misunderstandings or legal disputes. The primary purpose of this agreement is to define the services the independent contractor will provide, which includes driving the mobile tire repair truck and repairing tires in South Dakota. The contractor will be responsible for promptly responding to service calls, assessing and repairing tire damages, and maintaining a safe work environment. Key elements of the agreement may include: 1. Scope of services: Clearly define the services the independent contractor will provide, limiting it to driving the mobile tire repair truck and repairing tires. This may extend to services such as tire replacements, patches, installations, and rotations. 2. Compensation: Outline the agreed-upon payment structure for the contractor's services, which may include an hourly rate, a commission based on repairs completed, or a combination of both. 3. Schedule and availability: Specify the agreed-upon working hours and days of the week when the independent contractor will be available for service calls. This ensures that the mobile tire repair service operates efficiently and meets customer needs. 4. Equipment and tools: Establish the responsibility of the contractor to maintain and provide their own tools, equipment, and materials necessary for tire repairs. The agreement may also specify any requirements for maintaining the mobile tire repair truck, including regular inspections and upkeep. 5. Liability and insurance: Address the liability of both parties involved, ensuring that appropriate insurance coverage is in place to protect against accidents, damages, or injuries during the operation of the mobile tire repair service. This includes workers' compensation insurance for the contractor and liability insurance for the owner. Additional Types of South Dakota Agreements Between Self-Employed Independent Contractor and Owner of Mobile Tire Repair Service to Drive the Mobile Tire Repair Truck, and Repair Tires: 1. Exclusive Agreement: This type of agreement grants exclusivity to the independent contractor, ensuring they are the sole provider of mobile tire repair services for the owner's business within a specific geographic area or time frame. 2. Non-Exclusive Agreement: This agreement allows the owner of the mobile tire repair service to engage multiple independent contractors simultaneously, providing more flexibility in service coverage and availability. 3. Term Agreement: A term agreement specifies a fixed duration during which the independent contractor will provide services. It can be beneficial for both parties as it ensures a committed partnership for a predetermined period. 4. Performance-based Agreement: This agreement establishes performance metrics and targets for the contractor, incentivizing them to achieve specific goals such as response time, customer satisfaction ratings, or the number of repairs completed within a given period. By having a comprehensive South Dakota Agreement Between Self-Employed Independent Contractor and Owner of Mobile Tire Repair Service, both parties can effectively collaborate, ensuring a smoothly operated mobile tire repair business while protecting their interests and upholding their obligations.
