Independent contractor agreements for instructors

[carltona]

Does anyone have experience with signing an independent contractor agreement with a dive center in the USA. I would love to get a sample, please redact any names. Thanks

 

[Huzzar]

Do you have a specific question about a contract? I haven't worked for a dive center but have signed a bunch of Ind. Contractor agreements.

 

[Peter Guy]

I do. I signed a contract with my LDS -- a contract that the LDS owner said his attorney wrote (with input from PADI) and I told him I wouldn't sign it without some changes -- which he made.

The whole issue of being an "independent contractor" while working for/with an LDS is an interesting issue and, in many cases, the contract may well NOT negate an employee relationship.

 

[fire_diver]

HA! This is funny. I have signed plenty of these, just not for an LDS. If you do, then you damn well better be the one in charge of the class, and setting the rate of your pay.

Be sure to read that contract CAREFULLY. There will be a lot of "check boxes" that you have to mark to indicate certain conditions apply to you to qualify as being independent.

 

[Huzzar]

That's true. It will depend on what's in the contract and how he behaves in working with you. If he treats you like an employee he could find himself being treated like an employer under the law.

You need to be sure to follow all the rules about taxes as you're self employed. Both sides of payroll taxes as an example. But you may have business expenses you can deduct.

 

[carltona]

If anyone has a copy of one of these agreements I would truly appreciate it. I am buying a dive shop in Key Largo FLorida and it currently doesn't use agreements with ICs. I think they are important for Tax and Insurance reasons. I understand that as the owner of the LDS, I need to allow them to be ICs and not manage them like an employee. They are responsible for instruction and following the standards of their agency and their schedule etc. They will be sending me a bill for services rendered as an IC for instruction. They do not have to be in the shop doing any kind of retail. They will conduct instruction at the resort pool and on our boat which has a posted dive schedule. We only require that they keep the high standards set by not only the certification agency but by the customer satisfaction standards of the resort on which we operate.

 

[Superlyte27]

This is an interesting subject, and one of the reasons a local business owner in Key Largo had to leave the country (when he got in trouble with the IRS). Remember, there are rules to follow when stating someone is an independent contractor. Some of the things made by businesses are that Independent Contractors must have an occupational license. They must have worker's comp insurance or an exemption from worker's comp insurance. They must sign the form I-9 (I think that's the form) stating that they understand that they will be issued a 1099-Misc at the end of the year. You cannot dictate their schedule. For example, if you require them to show up at 8am and work until 4pm, then they are not a contractor. They are an employee and you have made yourself liable. Key Largo is notorious for paying instructors and boat captains as IC's but then make them punch a clock. This opens you up to all kinds of liability. And sure, they've been doing it this way for decades, but only because no one has made a big stink about it.

Also, remember there is a finders fee for whistle blowers now. I think it's 10%. So if people know that you are screwing uncle sam out of 20k per year, they could get up to 2k for turning you in. I'd really rather not be on that side of the fence.

 

[carltona]

This is an interesting subject, and one of the reasons a local business owner in Key Largo had to leave the country (when he got in trouble with the IRS). Remember, there are rules to follow when stating someone is an independent contractor. Some of the things made by businesses are that Independent Contractors must have an occupational license. They must have worker's comp insurance or an exemption from worker's comp insurance. They must sign the form I-9 (I think that's the form) stating that they understand that they will be issued a 1099-Misc at the end of the year. You cannot dictate their schedule. For example, if you require them to show up at 8am and work until 4pm, then they are not a contractor. They are an employee and you have made yourself liable. Key Largo is notorious for paying instructors and boat captains as IC's but then make them punch a clock. This opens you up to all kinds of liability. And sure, they've been doing it this way for decades, but only because no one has made a big stink about it.

Also, remember there is a finders fee for whistle blowers now. I think it's 10%. So if people know that you are screwing uncle sam out of 20k per year, they could get up to 2k for turning you in. I'd really rather not be on that side of the fence.

I've heard the stories. Since the shop is the portal to the business and the shop has regular business hours business between the IC and the shop has to occur during our business hours, that's not a disputable issue. Our boats leave the dock at a certain time, if you miss the boat, your student isn't very happy but we're not setting the instructors business hours. But if you want to teach of our boat, your need to be on it when it leaves the dock. Don't care when you do the pool work, that schedule is set by the resort. Pool is only open to scuba instruction at certain times, I don't set the schedule. Don't care when you want to meet with your student otherwise.

That's the reason for a good IC agreement, it outlines those issues and reinforces the Independent nature of the business. Same with boat captains. We don't have a charter every day nor do we have to use the same boat captain on a give day. If you want to drive our boat as an IC captain, there are set times for the charters because that's what we sell to our customers. Boat leaves at 9am. I don't care when the captain shows up as long as it's in time to get the boat ready to leave on time. If you come the night before and prep the boat, I don't care as long as its done correctly to maintain customer satisfaction and coast guard requirement and keeping the boat shipshape. Is there gray area. yes. again a good agreement shrinks the gray areas.

 

[Dr. Lecter]

Let me get this straight...you're buying a business for which you're coming online and seeking random employment law precedents? Good luck with that.

 

[Wookie]

Here is one that a real dive shop with real dive boats in North Carolina uses. Short, sweet, and they have successfully defended unemployment claims to the state. I chose not to use it because I don't think it comes even close to meeting the intent of the law, but hey, it works for them. I can't compare the NC department of labor to the Florida Department of labor, but I've found that the Florida DOL are real pricks, and if it comes down to you said-they said, you will lose without recourse.