My fellow Houstonian mental health therapist independent contractor agreement out there are likely aware of the Federal Flood Commission (FFC) website, which provides resources for doing better in the event of flooding, such as what happened during Hurricane Harvey. One of the takeaways from that disaster is being prepared with a comprehensive independent contractor agreement. According to The American Psychological Association, flooding is one of the most common and widespread disasters in the world. Flooding can occur from a dam break, excessive rainfall, or tropical storms, and communities near rivers, streams, and other water bodies can be at risk of flash floods. And in the United States, floods can cause damages exceeding $15 billion in yearly losses. Further, 282 lives were lost to flooding from 2016 to 2017 in the U.S. alone. Psychological trauma from flooding is not uncommon. The American Psychological Association identifies several effects of psychological trauma, including intrusive memories of the trauma, avoidance, increase alertness, feeling detached, ongoing anxiety and fear, and irritability in relationships.
In addition to considering the mental health impacts of natural disasters like flooding, it is a good idea to prepare yourself legally as well. As an independent mental health provider, you should take proactive steps to protect yourself from financial loss or liability due to lack of preparation, especially in areas prone to flooding. In fact, the greater Houston area is susceptible to coastal flooding, inland flooding, and flash flooding, and sudden and prolonged rain can create a risk of flooding. An independent contractor agreement is a contract used by one party to solicit services from another party who agrees to provide those services for a specified fee. When a mental health therapist works separately and independently from an employer to offer services to patients or clients, they are providing those services as an independent contractor.
Though independent contractors are responsible for their own business-related expenses, businesses hiring independent contractors are also relieved from legal responsibilities for the independent contractors’ acts or omissions. (I’ll touch on this more in a bit.) First, mental health therapist independent contractor agreements should include an acknowledgment by the independent contractor. The independent contractor should acknowledge that they have been engaged as a mental health provider for professional services and that they shall have no authority to bind the agreement issuer/contractor without prior written consent. It should also specifically state that the agreement issuer shall have no responsibility or liability for any act, omission, fault, or negligence of the independent contractor due to their independent professional judgment.
Additionally, independent contractor agreements should identify whether they are effective solely between the agreement issuer and the independent contractor, any entities such as professional corporations, and relevant state regulations on serving minors and their parents. Mistrust between any of the parties is more likely to endanger an independent contractor relationship and should be avoided through clarity and transparency. All employment-related issues should be addressed as well, including legal coverage under any relevant state laws. It is important to note the specific legal responsibilities of mental health therapists. For instance, therapists should be active reporters of suspected abuse of children, the elderly, and those who are developmentally challenged. Therapists also have a duty to warn potential victims of clients’ threats to their safety.
If you do not have a solid agreement in place, these obligations may easily turn into liabilities. Moreover, if you have incorrect or incomplete information in your agreement with your independent contractor, it could impact your association with any professional corporation, potentially making you liable for the professional services you provide. The bottom line is that mental health therapist independent contractor agreements are essential to protecting your own legal interests and preparing for unexpected challenges like floods. One way to ensure that you are ready for unexpected disasters and that you are not exposed to undue legal liability from your independent contractor relationship is to consult a lawyer. A lawyer can help you review your current agreement and give you advice regarding what revisions you should make to ensure that you are fully protected.
And remember, independent contractors are responsible for the taxes typically withheld in employment relationships, so you should regularly review your insurance coverage and tax obligations when serving as a mental health therapist in the Houston area. Psychological trauma is an unfortunate reality of life in Houston, but with a strong and flexible legal framework and with your own thorough understanding of your role and responsibilities as a mental health provider in a flood-prone part of the country, you can do your part to continue uninterrupted service to people in need while otherwise conserving the interests of yourself and your practice.
For more information on the legal responsibilities of mental health professionals, you can visit the American Psychological Association.