Policy Manual sample

MDT Home Health Care Agency, Inc. CLARIFICATION OF EMPLOYEE/CONTRACTOR STATUS Policy: To Help clarify the “Employee” term used in our Policy Manual and Employee Package. Statutes usually fail to clearly define the term "employee", and no single standard to distinguish between employee and independent contractor has emerged. The IRS 20-factor, right-to-control test is used to assess an employers’ tax liability. A similar test is used in most states to determine status under workers’ compensation laws. The so- called “economic realities test” or a hybrid of the right-to-control and economic realities test often is used by courts to determine independent contractor status in other circumstances. In essence, the economic realities test makes it harder to classify a worker as an independent contractor, because, in addition to considering the degree of control the employer exercises, it takes into account the degree to which the workers are economically dependent on the business. The economic realities test is used to determine employee status under the Family andMedical Leave Act (entitling workers to unpaid leave under certain circumstances), the Fair Labor Standards Act (establishing a minimum wage), and the Worker Adjustment and Retraining Act (providing for advance notice in event of plant closings and mass layoffs). Additionally, it is often applied by courts in determining independent contractor status in civil rights cases under Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, and the Americans with Disabilities Act. States use a variety of other tests to determine independent contractor status for unemployment insurance purposes. For all this reason, amend that we may be use the term “Employee” in some application packages, for purpose of working in our Agency, Employee only mean “staff” that work for our Agency as Direct or Independent Contractor, and has all professional and para-professional responsibilities with our patients/clients. The LEGAL definition of his/her condition is stated in the LEGAL Agreement signed between our Agency and the staff, where we clearly state his legal condition as “Direct Employee” with tax deduction, or “Independent Contractor” without tax deduction. Every employee will sign this form as clarification of possible confusion for “Employee” term used. ______________________________________ ___________________________________ Staff Name Signature Date: ________________________ Home Health Agency. - - Personnel/Operations Policies B-158