Re: Can a Company Require a Weekly Flat Rate Compensation for an IC
there is nothing wrong with what they offered. This is contract work and the contract is whatever is negotiated between the IC and their client.
This doesn't seem right to me. Can a company require this arrangement for compensation? The non-exempt employees get OT for those hours -although the contractors get a much higher rate. Any input would be appreciated.
the client cannot demand the extra time unless allowed by the contract. It is up to the contractor to control his workforce. If contractor agreed to have such and such done by a given time, it is up to the contractor to do whatever he needs to complete that work by the agreed upon time, whatever it takes.
For example, in a prior contract with a company the agreed upon compensation was hourly at a rate of $50/hour. Typically this entailed a 40 hour work week but occasionally, night or weekend work was required that resulted in hours worked in excess of 40/week. Most people involved in the project (both employees and contractors) worked about 15-20 hours extra per month.
In many contracts that are more of an hourly type situation than an bid type, a NTE (not to exceed) is predetermined up front. That may or may not cover the entire job. That, again, is something both parties negotiate and put in the contract.
If the client contracts for a specified job for $XXX.XX, then, as the contractor, it is up to you to either accept or refuse such a contract and the gain or loss of a profit it yours.
If client contracts for something such as "5 technicians to work on IT situation such and such with end result to be whatever at $XXX.XX", it is up to the contractor to determine if this is feasible and accept or reject the contract. If the contract is simply for a tech for $XXX.XX/ hour, the contractor is still in charge of that tech and can include limitations on the hours worked for that tech. If the client then wants to have a tech work more hours, that, again, becomes a negotiated item and included in the original contract or as an addendum to the original contract.
Bottom line; the contract is whatever you agree to. Pay, limitations of hours, pay for hours more than agreed upon, whatever; it all should be in the contract. If it isn't, then you get into what does the contract say about the situation and if necessary, negotiate an addendum to the contract.
as to sfchin's situation; if a client birdogged me or one of my employees like that, he would be told to refrain from that. The client does have the right, in most situations, to demand the removal of any particlular employee from his premises, as long as he does not sign away those rights and if the client believed an employee of mine was simply sucking up time, then he needs to address that with ME, NEVER with the employee because it is MY employee and I alone direct my employee (obviously as long as the contract does not change that).
Now, it seems sfchin somehow altered the contract midstream and added performance goals. Some contracts may allow this, others not.
the contract is what controls. Put what you want in the contract and demand all parties follow the contract. It is just that simple. If either party signs a contract that allows them to be injured, then they had better wise up and learn how to read a contract.
I am not an attorney and any advice is not to be construed as legal advice. You might even want to ignore my advice. Actually, there are plenty of real attorneys that you might want to ignore as well.