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  1. #1
    Join Date
    Mar 2013
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    2

    Default Independent Contractors Treated Like Employees, Don't Get Job Benefits

    My question involves employment and labor law for the state of: CA

    I work for a large company that pays us as 1099 independent contractors. Some of us just started and wanted to know why or if this is of legal practice. We all get paid the same amount. No raises, no benefits, no insurance. We all come in 5 days a week, work 8 hours a day, get a week of sick days and a week of vacation days. We sit at our computers and work as hard as the next guy who is an employee. This to me seems like we should also be full-time employees. The tricky situation here though is that they pay us EXTRA in our paychecks so that we can turn around and pay "RENT" for the workspace that we are using. Is this a legal practice or are they trying to cover themselves? We would just like to be full-time there and be appreciated more than just a freelancer. Any help would be greatly appreciated. Thanks!

  2. #2
    Join Date
    Jan 2008
    Location
    Toledo, OH
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    16,307

    Default Re: Independent Contractors Treated Like Employees, Don'tGet Job Benefits

    Read here first, then come back and tell us which parts apply to you.

  3. #3
    Join Date
    Mar 2013
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    2

    Default Re: Independent Contractors Treated Like Employees, Don'tGet Job Benefits

    Wow, thanks for this list. In this situation, I feel that I fall basically on the left side of the list as an "Employee". I am a graphic design er that reports to my boss who is my creative director. I design art under their direction and supervision as well as several people above my boss. They tell me what to work on and when it's due. They need me to be there and am a fully integrated part of the team. I work here ongoing full-time as well as others. Some of which have been here for several years. I cannot set my own hours. I work at the office 5 days a week, 8 hours a day. They trained me in the protocol and procedures of the company. I am paid regularly twice a week.

    Can you explain if the "RENT" part is legal practice? That is what makes me suspicious the most. They add an exact amount to my paycheck in addition to my regular pay. I in turn, have to write a personal check in this same exact amount back to the company for the "RENT" of their computer. Thanks!

  4. #4
    Join Date
    Sep 2012
    Posts
    1,988

    Default Re: Independent Contractors Treated Like Employees, Don'tGet Job Benefits

    sounds like a hair brained scheme to back up their assertion that you are an independant contracter cooked up by someone with little or no understanding of what the law actually is.

    they probably got the idea from the fact that many hairdressers are independant contractors and rent space/time slots at salons.

  5. #5
    Join Date
    Oct 2006
    Posts
    16,391

    Default Re: Independent Contractors Treated Like Employees, Don'tGet Job Benefits

    Quote Quoting Designer25
    View Post
    Wow, thanks for this list. In this situation, I feel that I fall basically on the left side of the list as an "Employee". I am a graphic design er that reports to my boss who is my creative director. I design art under their direction and supervision as well as several people above my boss. They tell me what to work on and when it's due. They need me to be there and am a fully integrated part of the team. I work here ongoing full-time as well as others. Some of which have been here for several years. I cannot set my own hours. I work at the office 5 days a week, 8 hours a day. They trained me in the protocol and procedures of the company. I am paid regularly twice a week.

    Can you explain if the "RENT" part is legal practice? That is what makes me suspicious the most. They add an exact amount to my paycheck in addition to my regular pay. I in turn, have to write a personal check in this same exact amount back to the company for the "RENT" of their computer. Thanks!
    That is their way of trying to make it legal that you are treated as contractors rather than employees. You can fill out IRS form SS-8 to ask the IRS to determine if you are an employee or a contractor. Its a somewhat slow process.

  6. #6
    Join Date
    Jul 2007
    Location
    Florida
    Posts
    2,344

    Default Re: Independent Contractors Treated Like Employees, Don'tGet Job Benefits

    Just make sure you never want to work for the company again before you file form SS-8.

  7. #7
    Join Date
    Jun 2010
    Posts
    179

    Default Re: Independent Contractors Treated Like Employees, Don'tGet Job Benefits

    I'm in a similar industry branch. Every employer I have worked for has used contractors at one point or another. They usually use company owned equipment. It is done for two reasons: One is anticipated length of project; the other is a "try before you buy." Typically a contractor is compensated with a higher hourly than he would be as an employee to make up the difference. So if they hire you full time, don't think they will just keep your hourly and give you the benefits for free.... Wages of course vary considerably depending on skill and experience so you can't compare yourself to the next guy either. A contractor is usually hired with a term, e.g. 6 months. But this can get extended if the project goes on for longer or if they find another project they can put you on. If you've been there for a while, I would think that they don't like your work enough to hire you full time or keep you long term.

  8. #8
    Join Date
    Dec 2009
    Location
    Lake Chapala
    Posts
    3,031

    Default Re: Independent Contractors Treated Like Employees, Don'tGet Job Benefits

    "I am not an attorney."

    Based on your post, you sure aren't!!!

  9. #9
    Join Date
    Jun 2010
    Posts
    179

    Default Re: Independent Contractors Treated Like Employees, Don'tGet Job Benefits

    Thanks :-). However, I still think that my post had more value than yours.

    http://www.irs.gov/pub/irs-utl/emporind.pdf.

    IRS Section 530 talks about "industry practice safe haven" One could argue the fist requirement but like everything else it is very open to interpretation.

    Good luck to OP with that one in our industry. Granted a graphics designer may or may not be in the industry I'm in.

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