Should You Work as a BCBA Employee or Independent Contractor?
- Ashleigh Evans (BCBA)
- 2 days ago
- 7 min read
As a BCBA exploring new opportunities, you may have noticed job postings labeled as either W2 employee or 1099 independent contractor, and now you're wondering which option is right for you.
At first glance, contractor roles can be appealing. They may offer higher hourly rates, flexible schedules, and greater autonomy. But the reality is more nuanced. Many independent contractors are actually misclassified, meaning their role doesn't meet the legal requirements for independent contractor status. Whether a position truly qualifies as contractor work depends on how it’s structured—not just what the contract says.
Before making a decision, it’s crucial to understand what legally distinguishes an employee from an independent contractor, and how that applies specifically to BCBA work.
What’s the Difference Between an Employee and an Independent Contractor?
An independent contractor is essentially running their own business and contracting their services to organizations. Contractors are not employees of the organization. For example, an ABA company needs someone to write blogs for their website. They contract with a BCBA writer, someone external to their company, to deliver these services.
An employee, on the other hand, works under the direction and control of an employer under specific employment conditions (DOL, 2024). Whether you’re (properly) classified as an employee or contractor isn’t about personal preference or what the employer offers. It’s determined by federal guidelines and how the role is actually structured.
The Department of Labor uses the economic reality test, which examines six key factors to determine whether a worker is truly independent. Understanding these factors is essential for BCBAs considering a contractor role.
The 6 Factor Test: Questions BCBAs Should Ask
When deciding between a role as an employee vs. a contractor, ask yourself the following questions in relation to the 6-Factor Test.
Do you have opportunities for profit or loss?
Independent contractors have real opportunities to increase or decrease their income based on business decisions. Here are some indications that a position would pass this factor:
You can negotiate your hourly rates
You can take on or decline clients freely
You can grow your income through business decisions
You can hire your own workers (subcontractors) to support your responsibilities
If your income is fixed and based solely on assigned clients, this typically leans toward employee status, not independent contractor classification.
Are you investing in your own business?
Independent contractors make business-level investments, such as:
Marketing or advertising
Purchasing ABA software
Hiring subcontractors
Implementing systems that expand their reach
This factor focuses on whether the BCBA makes meaningful business investments—comparable to those of the employer—that support the ability to work independently in the ABA field.
How permanent is your role?
Contractor roles are usually:
Project-based
Time-limited
Or variable in nature
If you’re working full-time, long-term, and exclusively for one company, that strongly suggests an employee relationship.
Who holds control over your work?
This is a big one!
Does the company have control over your schedule, caseload, and pay rates? Do they supervise your work and have the right to discipline you? Do they require you to use specific tools, platforms, and treatment protocols? Do they restrict your ability to work for other organizations? If you're answering yes to these questions, the role likely constitutes W2 employee classification, rather than 1099.
Is your work central to the business?
Is the work you'd be doing critical, necessary, or central to business operations? If it's not integral, that lends credence to independent contractor status. However, if the service you provide is business-critical, you should be classified as an employee.
In a typical ABA organization, the work of a BCBA (e.g., overseeing ABA therapy programs) would be central to business operations. That organization couldn't function without a BCBA providing that service.
Are you using your skills as an employee or a business owner?
This factor examines whether your clinical expertise is being applied in conjunction with business initiative.
Are you relying on the organization for training, structure, and clients? → Points toward employee status
Are you leveraging your skills to attract clients, expand services, and operate independently? → Points toward contractor status
Simply being skilled is not enough—what matters is whether those skills are used to run a business, not just perform assigned tasks.
What if I Have an LLC?
Some BCBAs assume that forming an LLC automatically makes them an independent contractor. This is a common misconception. Having an LLC does not change how federal or state agencies would classify your work. Classification depends on the nature of the individual role and how you perform it. In fact, you could function as an employee for one organization and a contractor for another, depending on the circumstances.
Even with an LLC, your role should still be classified as an employee if it doesn’t meet the six factors we discussed earlier. An LLC can offer benefits like liability protection and tax flexibility, but it does not automatically make you an independent contractor.
Before assuming contractor status simply because you’ve formed an LLC, carefully evaluate your actual work situation against the six-factor test to ensure compliance and avoid potential legal or financial issues.
What Should I Do if I Realize I'm Misclassified?
If you discover that an organization has misclassified you as an independent contractor, start by discussing the issue with the employer. Explain that your role may not meet the criteria for independent contractor status and request reclassification as a W2 employee.
Employers can reclassify employees with partial relief from federal employment taxes through the Voluntary Classification Settlement Program (VCSP). If they refuse to reclassify you despite ample evidence that your role clearly doesn't pass the 6-factor test, consider it a red flag. Report the misclassification to your local labor board.
If you've been misclassified, you can also file Form 8919 with the IRS to report uncollected Social Security and Medicare taxes due to misclassification.
Choosing Between an Employee or Contractor BCBA Role
For most BCBAs, an employee role is best simply because a typical BCBA role often fails to meet the legal threshold for independent contractor status.
If you're still considering a contractor position, start by carefully reviewing the six factors previously highlighted to see if the role passes the Economic Reality Test.
As a reminder, the six factors are:
Opportunity for profit or loss depending on managerial skill
Investments by the worker and the employer
Permanence of the work relationship
Nature and degree of control
Whether the work performed is integral to the employer’s business
Skill and initiative
If a role meets these criteria, you should weigh other practical realities of working as an independent contractor to guide your decision.
Lack of benefits: No health insurance, retirement contributions, paid time off, or workers’ compensation coverage
Self-employment taxes: Contractors must pay both the employer and employee portions of Social Security and Medicare taxes
Business responsibilities: You are responsible for managing bookkeeping, invoicing, insurance, marketing, and legal compliance
Income variability: Contractor income can fluctuate. However, this could also be true of a part-time employee position.
Examples of BCBAs in Contractor Roles
While most BCBA positions don't meet the legal requirements for 1099 independent contractor status, that's not to say BCBAs can't ever be contractors. To help illustrate this point, here are a few examples of roles that are likely to qualify as independent contractors.
1. Private Consultant BCBA
A BCBA provides consultation services to multiple ABA clinics and schools, helping them develop individualized programs, train staff, or conduct program audits. These consultants:
Work on an as-needed basis (e.g., one-time or short-term consultations)
Set their own schedule
Market their services independently
Decide which clients to take on
Determine rates for services
Don't have a supervisor overseeing their work
Provide services to many different organizations
In this scenario, the BCBA is running a small consulting business, using their clinical skills alongside entrepreneurial initiative, which supports contractor status.
2. Niche or Specialty Services
A BCBA specializes in a niche area, such as feeding therapy. As an expert in this speciality, they contract with multiple organizations to provide focused feeding treatment for learners with unique feeding needs.
This BCBA:
Takes clients with specialized feeding needs on an as-needed basis, not as a permanent and ongoing employee
Offers services to multiple organizations
Sets their own schedule within client availability
Sets their own rates for services
Relies on their own expertise to design and implement individualized programs
In this scenario, the BCBA is using specialized skills independently, managing multiple clients, and determining how to deliver services. This combination of expertise, autonomy, and business initiative aligns with independent contractor status.
3. Contract-Based Program Development
Some BCBAs are hired by ABA providers on a short-term, project-based basis to develop curriculum, design training programs, or implement new clinic procedures. Many new organizations in the early startup phase contract work for this purpose.
These BCBAs:
Operate under a clearly defined project scope and timeline
Use their expertise to complete the project without day-to-day supervision
Can take on similar projects with other organizations
This type of arrangement is temporary and business-driven, fitting the contractor model.
Making the Right Choice for Your BCBA Career
Deciding whether to work as a BCBA employee or an independent contractor can be challenging. However, understanding the criteria for contractor roles empowers you to make an informed decision.
Most BCBA roles in traditional ABA organizations fall under employee status because the nature of the work doesn't meet the legal criteria for independent contractor classification. However, there are certain situations when BCBAs can function as a true contractor. Ultimately, your choice should balance legal compliance, financial stability, and personal goals. Before taking on a contractor role, carefully evaluate the position against the Six-Factor Economic Realities Test.
References
Department of Labor. (2024). Fact Sheet 13: Employee or Independent Contractor Classification Under the Fair Labor Standards Act (FLSA). Retrieved from https://www.dol.gov/agencies/whd/fact-sheets/13-flsa-employment-relationship#:~:text=The%20Department%20has%20issued%20regulations,employee%20or%20an%20independent%20contractor.
Department of Labor. (n.d.). Myths about misclassification. Retrieved from https://www.dol.gov/agencies/whd/flsa/misclassification/myths/detail#1.
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