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