Because physical therapists and physical therapist assistants provide care directly to patients as contractors, under current law, they can no longer be independent contractors and must be employees unless they meet one of two criteria, recently passed into law under AB 2257.

Can you provide training to independent contractors?

Companies who are concerned about high quality performance from their independent contractors often ask: “Can I give an independent contractor a training manual?” The answer is “No.” This is a very dangerous high risk practice. It will be positive proof that you are, in fact, training the independent contractor.

What are independent contractor services?

An independent contractor is a self-employed person or entity contracted to perform work for—or provide services to—another entity as a nonemployee. As a result, independent contractors must pay their own Social Security and Medicare taxes. Another term for an independent contractor is “freelancer.”

Are physical therapists exempt from ab5?

The bill exempts certain licensed health care professionals. However, Physical Therapists (PTs), Physical Therapy Assistants (PTAs), Occupational Therapists (OTs), Certified Occupational Therapy Assistants (COTAs), and Speech Therapists (STs) are not included as exempted professions.

How will AB5 affect independent contractors?

Effective January 1, 2020, AB5 affects independent contractors throughout California, radically changing 30 years of worker classification and reclassifying millions as employees. AB5 takes this “ABC” Test and expands the use of this three-pronged test to cover the entire Labor Code and Unemployment Insurance Code.

Can COTAs be independent contractors?

Prior to AB 5, employers in the home health field correctly classified PTs, PTAs, OTs, COTAs, and STs as independent contractors. Therapists, as authorized by their license and scope of practice, independently evaluate, assess, and develop treatment plans for the specific needs of their patients.

Can a physical therapist be an independent contractor?

If you’re like I was as a new grad, you don’t even know that being an independent contractor AND a physical therapist is a thing! My first job out of school was working as a full-time, salaried employee in an outpatient clinic, largely because I didn’t know what my other options were.

How are physical therapists paid as a contractor?

As a contractor, you are not guaranteed to be paid a certain number of hours a week. You are only paid for the “jobs” that get done. As a therapist, “jobs” equate to the number of patients you actually see that week. So, if a patient cancels and you don’t have the chance to fill that time with a different patient, you don’t get paid for that time.

What’s the difference between an employee and an independent contractor?

In an inpatient rehab facility, on top of seeing a full caseload, an additional job duty at the end of the workday might be creating the team schedule for the next day (because you are more familiar with each patient’s remaining therapy needs for the week than the part-time employees/contractors).

What does a non-compete clause mean for a physical therapist?

Non- Compete Clause – The physical therapist warrants to Island that he/she will not attempt to compete with Island to obtain any client cases as an individual provider or through another agency, for the duration that a patient is a client of Island.