LEGALITIES
Jan 17, 2016
LEGALITIES
Independent Contractors vs. Employees◦Personal trainers working in clubs are:◦Independent Contractors◦Employees
◦Personal trainers that are self employed are usually ◦Independent contractors
Facility Owners
◦Do not have to provide:◦Expense of training◦Medical benefits◦Social security withholding◦Worker’s compensation◦Unemployment coverage
Benefits to working as an independent contractor
◦Choosing when and where to work
◦Charging variable fees for different situations
◦Having professional freedom in conducting work
Legal Tests10 legals tests to determine if whether someone is an employee or independent contractor:◦1. How much control does the
employer have over the work performed?
◦2. Are you paid by the hour or the job?◦Hour = employee◦Paid by service =
independent contractor
◦ 3. How long have you been employed at the establishment?◦ Short term = I.C.◦ Long term = Employee
◦ 4. How much training do you require?◦ Already have specialized skills or training
= independent contractor◦ Employer provides training to a recently
hired person = employee
◦ 5. Do you provide service to more than one business or client? ◦ Yes = independent contractor◦ No = employee
Legal Tests◦ 6. Who provides the equipment?
◦ Your own = independent contractor
◦ 7. Is the work integral to the business or is it supplemental?◦ Integral = employee
◦ Supplemental = independent contractor
◦ 8. In other clubs, is the work traditionally performed by an independent contractor or an employee?◦ Current practices may help determine
◦ 9. What did the club and the trainer (you) intend when they made their agreement?
◦ 10. Is the employer engaged in business?◦ If a client hires a trainer to perform personal
trainer = independent contractor
Contracts◦In order to get paid for the work you perform you need a contract.
◦The following elements make a binding contract:◦An offer and acceptance with a
mutual agreement on terms◦Consideration – an exchange of
valuables◦Legality – acceptable form under
the law◦Ability of the parties to enter into a
contract with respect to legal age and mental capacity.
Included in contract
◦Every contract should include:◦Identification of parties◦Description of services◦Specification of
compensation◦Confidential relationship◦Business or employment
status◦Term and termination
Business Structure
◦How are you acting?◦Individual?◦Corporation? ◦Employee of fitness centers?
◦Independent◦Sole Proprietorship◦Partnership◦Corporation
◦Sole Proprietorship◦Sole proprietorship◦A business owned and
operated by one person◦Owns all assets and is
responsible for all income, losses, and liability◦Completely responsible for
all liabilities, court awards, or damages incurred by the business.
Partnership◦Two or more people who agree to operate
a business and share profit and losses may form a partnership.
◦General partnership: All partners are fully liable for the actions of the business. You are also liable for all debts.
◦Limited partnership: law usually prevents limited partners from taking an active role in managing the business.
Corportation