It is Legal Not to Pay an Hourly, Contract Worker Overtime

[sarahab24]

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[jk]

the only real question here is whether they can hire you as a contract worker or not. If they can, yes, they can treat you exactly as you state. If you do not wish to contract to them for those conditions, it is your right to refuse.


Also realize that as a contractor, you will be required to self report your income and pay taxes and the employers share (since you are self employed) of any taxes or normal withholdings from an employees pay.

so, you need to start with a bit of research in comparison between what defines an employee or a contractor to see if they can legally treat you as a contracter.


http://www.irs.gov/businesses/small/...=99921,00.html

http://www.comptroller.ilstu.edu/dow...ontractors.pdf

https://www.google.com/search?sugexp...or+or+employee

[cbg]

There is nothing you have described that is illegal for an independent contractor. There is no requirement that IC's receive benefits, no guarantee that they be brought on full time, no prohibition that they cannot be paid hourly, or any requirement that they receive overtime pay.

However, that doesn't mean that you can legally be considered an IC. All workers are assumed to be employees until proven otherwise. There is a list of requirements that must be met before you can be considered an IC.

If indeed you are an employee and not an IC (which is probably the case), you may or may not be entitled to benefits; that would depend on the terms of the plan document. There is no requirement that you receive vacation or sick time. It is legal for you to be paid hourly - however, if you are a non-exempt employee, you must be paid overtime if you work over 40 hours a week. Mandatory overtime is legal in all 50 states.

I would have the contract reviewed by an employment attorney in MI before you sign.

[jk]

I haven't signed the contract yet, but that it specified in the contract that I won't be paid overtime. I will have taxes taken out, and the employer/contract agency will be giving me a W2 for taxes next year.

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Thank-you for the information.

Time out



if you are a contract employee, they cannot take taxes out and if they are giving you a w-2, further supports the argument they are classifying you as an employee. It sounds like the contract is illegal

let me edit that a bit:

when I say: contract employee, I am referring to an independent contractor.


the more you speak, it sounds like they are considering you an employee but you are going to be under contract. If that is the case then no, they cannot not pay you overtime. They do not have to provide an benefits but they cannot deny paying you overtime.