Hired as a contract employee

[Boss Cooker]

I was recently hired as a journeyman welder to fabricate antenna towers. I also provide my own tools. I was told on payday that I was a contract employee until further notice and would not receive overtime pay. That week I had ten hours overtime. The following weeks I have averaged twenty five hours overtime. Also, the employer does not include workers comp. in a somewhat dangerous work place. This week I am expected to be on a job site for several days to install a four hundred foot tower. I will be on the ground working with the rigging and support. The company services and installs up to two thousand foot towers.
My question is simple. As I understand the labor laws. Overtime must be paid over 40 hours, and workers comp. should be provided.
I owned a sandblasting and painting company in Florida and did use contract or leased employees. I had to provide proof of workers comp. and pay overtime.
Am I missing something here. By the way I am in Arkansas where some of the good ole boys like to make their own rules.
I do like the work place and the owner. Most of us have known each other for several years and attend the same church.
I don't mind working heart and sole for an employer. I just want to be treated fair and honest.
What do you think?

[quietstar]

What are the terms in the contract you are working under? Contracting work may be used to lessen company liability exposure. If the understanding you reached in the beginning has been changed to your disadvantage without your agreement, I would have a set down discussion with the Bossman...Glen

[AngieM2]

There seems to be something wrong here.
When the company I use to work for had contract employees, they had to provide proof of insurance or would not be contracted.

Also, did you sign up as and employee or contractor? From what you've said, sure sounds funky.

Contracted people take care of their own insurance, taxes, etc which is better for the company, but usually they get paid for all hours worked.

At least that's the way it worked when I did a contract job.

If you have paperwork, go read it again.

Angie

[LvDemWings]

If you are employed under a contract then look at the terms of your contract. Most often they state either a per job or per hour flat rate and you would provide your own workmans comp. If you have no contract then I would consider you hired by a contractor as a laborer, overtime would apply and the workmans comp would be paid by someone else. The general contractor is the overseerer an is required to check on workmans comp status of everyone on the jobsite.

Its unfair but you'll have to decide if you want to rock the boat or not. You do risk being asked to leave the job site if you make a stink even if your right.

[Macybaby]

They are treating you as an Independent Contractor, which is not the same as a contract employee. Independent contractors are NOT employees.

Look up the Dept of labor regs on this one. It does not matter what the employer calls the position, does not matter what type of contract you may have signed, it depends on the actual situation. Both the DOL and IRS get very uptight about employers misclassifying workers.

Cathy

[veggrower]

Originally Posted by AngieM2

There seems to be something wrong here.
When the company I use to work for had contract employees, they had to provide proof of insurance or would not be contracted.

Also, did you sign up as and employee or contractor? From what you've said, sure sounds funky.

Contracted people take care of their own insurance, taxes, etc which is better for the company, but usually they get paid for all hours worked.

At least that's the way it worked when I did a contract job.

If you have paperwork, go read it again.

Angie

The way I read his post when he said he "would not receive overtime pay" is that he would not receive time and 1/2 or double time for overtime, not that he would receive no pay for overtime.

I am in a different state, but one of the benefits I receive when I use contract labor is that the labor contractor has to supply worker's comp insurance, not me.

That said, this doesn't sound like it meets the IRS requirements for a contract employee.

[Ken Scharabok]

"They are treating you as an Independent Contractor, which is not the same as a contract employee. Independent contractors are NOT employees."

I believe there fairly specific rules for both independent contractors and contract employees. I agree with above. Check out what applies to your state and situation.

I'm not sure I have this right but an independent contractor has a great deal of discretion on the job to be done. For example the contractor more or less just hands them the blueprints and they take it from there.

A contract employee may be for a specific job and, I believe, is typically done through a third-party agency.

[Jenn]

BC did they pay you for the 50 hrs or only 40? I would've walked out (if I could do the math quick enough as to whether I could afford to lose the job) on payday if they would not reverse that decision to what I had beleived I was hired under.

If they say you aren't on their worker comp you need your own. Tell them you have to stop work until you get your own and that your price will have to rise since you hired on expecting the rate of pay they promised WITH overtime and WITHOUT extra costs to you beside tool provision/maintenance.

Get it in writing and tell them you need time to rethink whether you can accept this offer of work. Might need your attorney to review the contract (we can always say that even if you don't have nor plan to get an attorney; I'm an independent contractor and I had an attorney review my last year long contract, none of my more temporary ones)

[Boss Cooker]

When I interviewed for the position we agreed on the hourly pay. Nothing was said about being a contractor. Had I known I would have offered other terms that included myself providing my own insurance and doing my own taxes and social security deductions. My impression was that I would be paid xxx per hour for 40 hours and time and a half for overtime. I also found out that there are two other people there at the same terms.
I will look up the state laws in Arkansas. But it seems that federal labor law must have a guide line that employeers must follow.
When I operated my company we worked in Florida, Geroiga, New Jersey and a few other states. I often used Contract employees and followed the same guide lines on overtime. Over 40 was time and a half.
I think the bottom line is anything over 40 man hours should be paid at time and a half.
At this point, I will tell my employeer that I will work 40 hours a week and be happy with that. I am earning a very good wage for my skills. We work a ten hour day in the shop. I can have a three day weekend.
By the way, at my sandblasting company we worked ten hour days and the employees loved it. At one time I had seventy five people on one job site. they were for the most part happy with the wages and bennies.

[rambler]

I think it would be fairly easy for you to win your view of this, and also fairly easy to lose your job on it.

How you rock the boat is up to you.

Independent contractor means you are hired to do a job. You are given the end goal, timeline, and possibly some supplies, and you supply everything else, including your own supervision. You gotta supply most of the tools, and be your own boss.

You should be given a great deal of freedom to do the hours and so forth you want to; so long as you stisfy the quality, materials, and timeline specified in the contract you got for the job. You do not have a boss or anything like that - you do report to a supervisor type that can inspect that you are following the contract. You don't punch the company timeclock for the company - tho you can keep track of your hours & be paid on that basis - which can be kept on the company clock of course.

I doubt, from the sounds of it, that you legally qualify as independent from the little you have said. If you feel like any other employee of the company under all the rules of the company and all you do is supply a toolcase of tools, you are still an employee.

Many have tried what your boss is doing; few have satisfied the legal system on it.

But I don't know all the details, so I'm just guessing. Your state may be vastly different than what I am familiar with as well.

--->Paul

[edcopp]

He probably thinks you are an illegal alien, perhaps you are.

You can get really good advice for free, as to how this all works. Ask the IRS, be sure to get his social security or employer I. D. number for them.

[fordy]

Originally Posted by Boss Cooker

When I interviewed for the position we agreed on the hourly pay. Nothing was said about being a contractor. Had I known I would have offered other terms that included myself providing my own insurance and doing my own taxes and social security deductions. My impression was that I would be paid xxx per hour for 40 hours and time and a half for overtime. I also found out that there are two other people there at the same terms.
I will look up the state laws in Arkansas. But it seems that federal labor law must have a guide line that employeers must follow.
When I operated my company we worked in Florida, Geroiga, New Jersey and a few other states. I often used Contract employees and followed the same guide lines on overtime. Over 40 was time and a half.
I think the bottom line is anything over 40 man hours should be paid at time and a half.
At this point, I will tell my employeer that I will work 40 hours a week and be happy with that. I am earning a very good wage for my skills. We work a ten hour day in the shop. I can have a three day weekend.
By the way, at my sandblasting company we worked ten hour days and the employees loved it. At one time I had seventy five people on one job site. they were for the most part happy with the wages and bennies.

...................All companies have to issue a 1099 Misc(miscellaneous income) form to anyONE they pay over $600 too during any given year . A 1099 Misc is a W2 for contract labor . The gross amount on the 1099 is what your tax return preparer will show as your gross income on Sch. "C" that you will have to file for tax year 2007 . Keep track of ALL of your milage as it is fully deductible unless you choose to depreciate your vehicle and Keep daily records of all incidential exp's necessary to DO your work . KEEP good records and you'll have no problems . Also , You should start making quarterly EStimated tax payments on Form 1040 ES as YOU are now responsible for both halves of your Fica as well as your estimated income tax for tax year 2007 . fordy...

[Ed0517]

One thing - not all jobs get overtime. A lot of jobs are "salaried" - you get x dollars a week. And yes, that CAN require over 40 hours. And the government is OK with it, they do it themselves. Though it does not sound like your job would be, if they have an hourly wage. There are rules as to what jobs can be classified as such, but I think they are mostly white collar

[Boss Cooker]

The last few responces got my attention.
I am the grandson of an Scotish Grandfather and an Englich Grandmother.
That would make me an American by birth. By five generations. So Stuff your unkind remark!!
This was not a salery position.
I have earned over $600.00 in one week. My employer pays straight time no matter how many hours you work. That was part of my question!!
There was no conversation about a 1099.
I was interested in finding out what the law stated in regard to fair labor practice.
I alredy stated what I had to do to be an honest concractor with my own company. I thought there may be somebody here that had a concrete point of law instead of out of pocket smart ass remarks.
I do arrericate the thought full remarks.

[Ole Man Legrand]

If you continue to work for this co. STOP at 40 hrs completion each week.

[fantasymaker]

Never heard of a contract employee isnt it either one or the other?

[rambler]

If you wanted good legal advise you should be talking to a lawyer or a CPA or a govt division that deals with these issues.

Asking here implies you want just general advise from folks who only know a bit about it based on local to them situations.

Tried to give you a good as I would know reply above, don't really care for your follow-up now. Think you were a bit rude to folks who just want to make conversation & help you out as best they know how. Not sure what set you off.

Your questions don't make full sense, because if you ain't getting a 1099, how can you be a independent contractor? If the co is paying your taxes, there is no way you can be anything but an employee under regular employee rules. Contract laborer is someone picked up for a short duration but is just like any other employee - tho often those types of jobs tend to be associated with illegals at some level...... Local customs can confuse & exchange terms many times, so don't know what it is you really are asking about, the terms you use would be all the wrong terms 'here'.

Good folks trying to chat with you & figure out what you really are asking, don't see why you should go off on them.

--->Paul

[wncramsey]

In I.T. if you make over a certain dollar figure, then the time and a half rule does not apply and hours worked over 40 are at straight time.

If you are a contractor, they should have had you sign a contract and provided you with a copy, where you'd be able to look up the details.

[gspig]

Not a unique situation. The company my brother works for is doing the same thing. I don't know if it has been resolved yet. They are employees up until so many hours, then they are "contract" employees. I don't know the exact details, but I couldn't see how they were regular employees then contract. Seems a lawsuit is needed there.

[Terry W]

IF the "employer" dictates the start and end time for hours, break times, etc-- you are working for them as an employee...
That is one of the first "items" that the IRS would look at if they Audit your 'employer'

worked 10 years for a major tax company-- and had to be real carefull what I told my Schedules C and F clients!!! And C differs from F by quite a bit!!!

'Contract employee' and "private subcontractor" are used interchangeably by many people-- I view any employment as a 'contract'-- and if taxes are not being with-held-- then the employer considers you a contractor---and you will be hit with a 1099-- beleive me- they want to account for every penny.