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Contract Employee's Newsletter
Helping Contract Professionals
Manage Their Careers
January 01, 2002
Edited by James R. Ziegler
A Companion to:
The Contract
Employee's Handbook
www.cehandbook.com
Sponsored by:
P.A.C.E. - Professional
Association for Contract Employment
www.pacepros.com
If You Live Or Work Near Silicon
Valley
You Simply Must Attend
The Contract
Employee's Workshop
January 26, 2002
Space is limited so reserve your seat today!
Details Below
About The Contract Employee's Newsletter
The Contract Employee's Newsletter is a free e-mail publication
for technical and professional contractors containing news, commentary,
tips, links to useful resources, nuggets of wisdom submitted by
readers, and anything else that seems appropriate at the time. The
CENewsletter is distributed bimonthly or whenever issues warrant
and time allows. The subscriber list is confidential and will not
be disclosed outside this organization.
In This Issue
Read recent
issues of The Contract Employee's Newsletter.
Suggest A
Topic For The Newsletter
Ideas Anyone?
We continue to receive excellent suggestions for future newsletter
topics. Keep 'em coming. Chances are, if a topic interests you as
a Contract Professional it will certainly interest the majority
of our readers.
Guest Appearances
I would like very much to publish short guest contributions
to the Contract Employee's Newsletter. Maybe a marketing tactic
that works for you, or a true story of agency madness? I'll cite
your name, your e-mail address, and a link to your professional
website. I can't pay you, but I'll make sure that everyone who reads
the Contract Employee's Newsletter knows who you are and what you
do. It can't hurt, and, who knows, it might help your consulting
career. Contributions should be of general interest to all Contract
Professionals.
Mail your suggestions to suggestion@pacepros.com.
Return to Table of Contents.
Featured Topic
Agencies With Mediocre Benefits Expose Clients To
Great Risk
Temp agencies and recruiting firms widely advertise that they "mitigate
the risks of co-employment". And generally speaking, they do.
The IRS is less likely to reclassify contingent workers as common
law employees of the client when those workers are employed by a
third-party employer of record. Temp agencies collect and pay payroll
taxes and income taxes on behalf of their temporary employees, and
in doing so they satisfy the federal and state agencies that are
responsible for collecting taxes and making sure that employees
are covered for federal and state entitlements.
But it is foolish to assume that a third-party employer of record
automatically confers immunity from reclassification, especially
in those situations in which agency temps believe they have been
harmed by being excluded from their client's benefit plan.
Temp agencies and recruiting firms offer minimal benefits at best
to their temporary employees, so one might expect that agency temps
would sue their agencies for better benefits. But that has not been
the pattern. Instead, class action lawyers and the courts have apparently
found it easier to attack the deeper pockets and greater vulnerability
of large corporations.
One consequence of these suits is that large corporations are feeling
pressure to require that temp agencies offer better benefits to
temporary employees. The reasoning goes, if temp agencies offered
decent benefits there would be little or no incentive for agency
temps to sue client companies for back benefits. In this light,
using the services of an employer of record like P.A.C.E. makes
very good sense.
Certainly, P.A.C.E. "mitigates the risks of co-employment"
by collecting and paying employment taxes for its Division Managers.
In this regard P.A.C.E. is like any other employer of record. But
P.A.C.E. also mitigates the risk of class action suits being filed
by disgruntled contingent workers by offering "the best benefits
package available to any employee in any company in the USA."
In light of the Viscaino v. Microsoft Ruling (see below)
it is not surprising that Microsoft has selected P.A.C.E. as an
approved vendor for its highly compensated contingent workers in
both Washington and California.
Below is a discussion of two class action suits where the courts
ruled that client companies must compensate their agency temps for
back benefits. In the Microsoft case the critical factor was "length
of service." At the Metropolitan Water District of Southern
California the critical factor was "client control."
Microsoft
During the late 1980's Microsoft hired independent contractors to
perform software testing, proof reading, technical writing, and
related jobs under the close supervision of Microsoft employees.
An IRS audit subsequently determined that these workers were in
fact common law employees of Microsoft for payroll tax purposes.
In response to this determination Microsoft offered full-time jobs
to some of the independent contractors, and arranged for the remainder
to work as leased employees through various approved temp agencies.
Conventional wisdom would dictate that Microsoft had operated in
good faith, and that its actions had successfully indemnified Microsoft
from further claims of common law employment. Confident that it
was operating within the law, Microsoft increased its use of agency
temps throughout the 1990s to the point where, by some accounts,
agency temps totaled one-third of all workers at Microsoft.
The 1990s was a decade of unprecedented prosperity for Microsoft
employees who twice a year could purchase the company's stock at
a 15% discount. Hundreds of Microsoft employees became paper millionaires.
Indeed, anyone who had purchased Microsoft stock on the open market
did very well. It was just that Microsoft employees could purchase
15% more stock for the same investment.
Call it sour grapes, or call it righteous indignation, but the
agency temps felt that they deserved a piece of that prosperity.
They believed that they were entitled to purchase Microsoft stock
at the same 15% discount as fully franchised Microsoft employees.
They wanted their piece of the prosperity pie, and they sued to
get it in a series of class action suits known collectively as Viscaino
v. Microsoft.
Viscaino v. Microsoft coined a new term, "Permatemp."
Permatemp refers to an agency employee who works continuously at
the same client for years on end. Many of the permatemps at Microsoft
had worked side by side with Microsoft employees five years or more
doing the same work under the same close supervision. Yet, they
were denied the opportunity to become regular employees of Microsoft
and participate in Microsoft's benefits package, including its lucrative
employee stock purchase plan.
Over eight years and several appeals, the courts repeatedly ruled
that Microsoft had misclassified upwards of 8,000 long-term contractors
as "temps" when they were in fact common-law employees
of Microsoft, and that Microsoft had used that misclassification
to illegally prevent the workers from participating in Microsoft's
employee stock purchase plan.
Invoking the principle of co-employment, the court found that the
plaintiffs were employees of their agencies for the purpose of payroll
taxes, but were employees of Microsoft for the purpose of participating
in Microsoft's employee stock purchase plan. Apparently, the workers
were somehow not sufficiently co-employed to qualify for Microsoft's
stock option, health insurance, and 401(k) plans.
In the end, the final judgment was for $97 million, of which plaintiffs
attorneys will reportedly receive approximately 28%.
In response to Viscaino v. Microsoft the software giant
has hired approximately 3000 of its permatemps as regular employees.
Microsoft also has adopted a policy that limits staffing agency
employees to a maximum tenure of 12 months, after which they may
not return for 100 days. Microsoft hopes that this remedy will be
sufficient to eliminate the issue of permatemps, and avoid any future
problems involving reclassification and co-employment of its agency
temps.
There is an excellent legal
brief published by the Information Technology Association of
America (ITAA) that discusses measures companies can take to avoid
Viscaino v. Microsoft consequences.
You will find additional
background on Viscaino v. Microsoft at Washtech.
Metropolitan Water District of Southern California
The Metropolitan Water District of Southern California (MWD) supplies
water to more that half of California's population. It is the largest,
and by some accounts the most corrupt, water district in the United
States. Now it has another distinction. MWD has just lost what may
be the largest temporary employee lawsuit in the United States.
MWD downsized its headcount by laying off many of its "permanent"
employees and then hiring them back as temporary workers through
several third-party staffing agencies. The temps signed employment
contracts with the agencies that clearly identified the workers
as employees of their agency and not the water district.
As outside vendors the agencies invoiced the water district for
the workers' hours. They paid the workers' salaries, withheld taxes,
and provided some benefits. The benefits, however, were significantly
less than those provided to regular water district employees. The
downsized temps who had previously worked as regular employees of
the water district lost the opportunity to continue their participation
in the district's retirement plan through the California Public
Employees Retirement System (CALPERS).
In their 1998 class action lawsuit the temporary workers charged
that the water district hired and supervised them just like its
own regular employees, making the workers common law employees of
the Metropolitan Water District. The lawsuit further claimed that
the district had kept the workers technically employed by outside
staffing agencies in order to avoid paying for expensive CALPERS
benefits.
The court ruled on behalf of the workers. According to the court,
the agency temps were common law employees of the water district
because the water district set their salaries and work schedules,
made work assignments, and had the right to evaluate, promote, discipline,
and fire them. Also, the court pointed out, the water district first
interviewed and selected the workers it wanted before referring
them to a staffing agency for employment. In other words, the water
district had merely outsourced the payroll function to various staffing
agencies while maintaining a common law employer-employee relationship
with its workers.
The judgment against MWD will affect about 2,000 water district
workers, and cost tens of millions of dollars in retroactive benefits,
quite possibly eclipsing the landmark Viscaino v. Microsoft
judgment.
Read the full court decision at www.bs-s.com/cargill.pdf.
Conclusion
There is a moral here. A company that uses a third-party staffing
agency to payroll its temporary workers had better make sure that
the agency provides at least as good benefits as the company provides
to its own employees. Any agency that provides only mediocre benefits
(and which temp agency doesn't?) is exposing its clients to great
financial risk.
Fortunately, companies can rely on P.A.C.E.'s
superb benefits program to give their Contract Professionals
the best benefits package available to any employee in any company
in the USA.
Earn your client's undying gratitude. Introduce your client to
P.A.C.E. today.
Return to Table of Contents.
News and Views
Oops. IEEE Gets Burned By IRS In Reclassification
Flap
It seems that no one is safe from the fickle finger of fate, IRS
style. In the cruelest of ironies the IRS is going after the Institute
of Electrical and Electronics Engineers, Inc. (IEEE), a Section
501(c)(3) non-profit organization, for employment taxes that were
not withheld from the wages of a reclassified conference worker.
Moreover, the IRS has hinted that it may review IEEE's documentation
for other independent contractors -- both at conferences and in
other capacities. The IRS also suggested that Conferences should
use the services of a (God Forbid!) Temporary Agency in the
future.
[Note to: IEEE Directors and Executive Committee. Using
a traditional temp agency may not be enough to protect
the IEEE from financial risk. First, read the CENewsletter
story above about how staffing agencies with inadequate benefit
plans expose their clients to huge financial risk. Next, contact
P.A.C.E. to find out how P.A.C.E. mitigates both the risk
of IRS reclassification and the risk of class action lawsuits
by disgruntled agency temps.]
The story is chronicled on the
IEEE web site. I do not know just when the reported events took
place, but the footnote on the story page reads "Modified:07-Nov-2001."
This story is ironic because the IEEE offers training and education
on independent contractor issues. I do not for a minute believe
that IEEE conference organizers were trying to pull a fast one on
the IRS. It just goes to show you that no organization is exempt
from IRS reclassification.
The IEEE Mission Statement, compiled by the IEEE Tax Compliance
& Research Team states in part that its mission is:
"to minimize IEEEs worldwide tax liability with absolute
integrity; and to file, in a timely and prudent manner, all tax
returns and reports as required by U.S. federal, state & local,
and Non U.S. tax authorities."
Oops! ;-)
Return to Table of Contents.
Ask Dungaree Dan
Does My Client Of 20+ Years Owe Me Retirement Pay?
Q: Dear Dan -- I have become enlightened by your Contract
Employee's Handbook website about the differences between an employee
vs. an independent contractor. I never knew I had rights. Now I
am wondering if it is too late to do anything about it.
I have worked for 20+ years at the same Fortune 500 company as
an independent contractor. Looking back now I see that I was treated
as an employee except when it came to benefits. I started out being
the lowest paid person in the group. I worked 40 hours a week full
time. No paid holidays, sick days, vacation days. No medical benefits.
No other employee benefits. I worked when and where I was told.
I never was asked to sign a contract. Basically, they would write
up a P.O. for the year to do work for various departments and I
would bill against it.
I was never given 1099 or W-2 forms. I was responsible for my own
estimated taxes, which I did faithfully. I never was given the chance
to increase my pay without a real hassle, with answers like, "I
wish I could give everybody a raise but I can't."
Anyway, as of November 5, 2001 this has ended. I am told that they
still want me to work for them as an independent contractor with
a signed contract and P.O., strictly like your handbook states.
The company is going to split up into 3 separate companies January
1st. I don't know what to do if anything. And I am now seeing people
that I have worked with retiring with full benefits, and I have
worked longer.
Do you think there is something I can do or is it too late? I just
didn't know. -- Signed: Looking For Answers Or A Lawyer
A: Dear Looking -- This is a long response to your query,
but I trust that you will find the informantion well worth your
time.
Taking what you write at face value, I would say that your client
is T*O*A*S*T. Take that company off the barbie
because it is DONE. Converting you to an independent
contractor, complete with a signed contract and a formal purchase
order, is too little, too late. Besides, simply signing a contract
does not, in and of itself, make you an IRS-compliant independent
contractor. Even having you go through a third-party employer of
record (i.e., temp agency, recruiting firm, etc.) will do little
to protect your client from having the IRS reclassify you as the
company's common law employee.
Why? Because every contingent worker, whether an independent
contractor or an agency temp, is technically a co-employee of the
client company. In practice, the IRS, the courts, and various government
agencies invoke the principle of co-employment when the contingent
worker is treated overtly like a regular employee, or is in some
way harmed by the client company. Examples are violations of Equal
Employment Opportunity Commission (EEOC) regulations, Occupational
Safety & Health Administration (OSHA) regulations, the Americans
With Disabilities Act (ADA), and violations of other laws that are
designed to protect the rights of employees.
Government agencies, including the Internal Revenue Service (IRS),
U.S. Department of Labor (DOL), Immigration and Naturalization Service
(INS), State Departments of Employment, Workers Compensation Departments,
State Labor Departments, the U. S. Equal Employment Opportunity
Commission (EEOC), and the Occupational Safety and Health Administration
(OSHA) make it their business to make sure that all workers are
properly registered for public entitlements and that they are protected
by rules and regulations governing the workplace. These regulations
apply to regular employees. They do not, for the most part, apply
to independent contractors.
Consequently, there is an overwhelming bias in government agencies
and the courts to classify workers, all workers, as employees of
the firm that pays for their work.
If the courts and government agencies believe that a client company
is abusing the "employee" rights of a contingent worker
all they have to do is reclassify the worker as that company's common
law employee.
It is then up to the company to prove that the worker is in fact
an independent contractor and not their common law employee. In
other words, the company is guilty until proven otherwise.
At the crux of this matter is the issue of control. If a company
has the ability to harm a contingent worker, then that company is
exerting control over the worker, and the worker becomes the company's
common law employee for the purpose of levying fines, penalties,
and other remedies.
Even if there is no apparent harm to the contingent worker, and
even if the contingent worker is perfectly happy in the role of
an independent contractor, the courts and government agencies can
reclassify the worker as the client's common law employee based
on the level of control exercised by the client over the activities
of the worker.
Once the worker is reclassified as the company's employee the IRS
and state agencies can go after the company for back payroll taxes,
back income taxes, penalties, and interest. Furthermore, the courts
can rule that the worker is entitled to compensation for retroactive
health benefits, retirement benefits, and even stock options that
the worker would have received as a regular employee of the company.
Imagine the financial consequence to a large company with many
contingent workers. Reclassification can be a company's worst nightmare.
The departments of employment of every state, and various other
state and federal agencies, publish lists of common law factors
for the classification of employees and independent contractors.
The most commonly cited list of common law factors is published
by the the IRS.
From time to time agencies update their lists. Factors that once
carried weight as discriminators are today poor indicators of worker
status.
For example, working at home once suggested independent contractor
status, but today, with teleworking so common among employees, working
at home has become a poor discriminator. Using the company's computers
and equipment used to indicate an employer-employee relationship.
But in today's high tech environment it is often imperative that
outside vendors perform their work on their client's own computers.
The IRS once held that being paid by the hour indicated an employer-employee
relationship. But the IRS now downplays this argument in light of
the fact that accountants, lawyers, and other independent professionals
are commonly paid by the hour.
In a 1987 Revenue Ruling [87-41, 1987-1 CB 296], the IRS devised
a list of twenty common law factors to help companies and IRS agents
determine the tax status of individual workers. The 1996 IRS training
manual trimmed that list to eleven factors organized in three general
areas of control. They are:
- Behavioral Control -- Facts which illustrate whether
there is a right to direct or control how the worker performs
the specific task for which he or she is engaged. For example,
specific procedural instructions and periodic or on-going training
by the company indicate an employer-employee relationship.
- Financial Control -- Facts which illustrate whether
there is a right to direct or control how the business aspects
of the workers activities are conducted. For example, making
a significant investment in one's business, incurring unreimbursed
expenses, offering one's services to the general public, project-based
payment, and the opportunity for profit or loss indicate that
the worker is an independent contractor or vendor and not an employee.
- Relationship of the Parties -- Facts which illustrate
how the parties perceive their relationship. That is, what is
the intent of the parties? Is the relationship formalized by a
written vendor contract or employee agreement? Are there employee
benefits? Can the worker be fired at will? How critical is the
worker's involvement in the company? Is the worker performing
specialized tasks or is the worker performing the company's regular
business activities?
I recommend that you download and read relevant sections of the
IRS training manual, Independent
Contractor or Employee? IRS Training Course 3320-102(10-96),
from the IRS website. Of particular interest is Lesson Two, which
discusses the common law factors used by the IRS that distinguish
an employee from an independent contractor.
Also, download IRS
Form SS-8. The questions in this form will help you identify
how you are being treated as an employee. If you want, you can complete
this form and send it to the IRS. They will then make a determination
whether you qualify as an employee or independent contractor. Wanna
bet what side they will come down on?
Let's evaluate your working conditions over the past 20+ years
in the light of the IRS's three general areas of control.
- RE: "I have worked for 20+ years at the same Fortune
500 company as an independent contractor."
Relationship of the Parties: Supports worker
status as employee.
Independent contractors work for multiple clients on short-term
assignments with termination dates specified by a contract. Typically,
employees work for a single employer for extended periods of time,
and have an open-ended relationship.
- RE: "I worked 40 hours a week full time. No paid holidays,
sick days, vacation days. No medical benefits. No other employee
benefits."
Relationship of the Parties: Supports worker
status as an independent contractor.
Employers provide benefits to their employees. They do not
provide benefits to independent contractors. However, if it is
determined that other factors suggest that you are indeed an employee,
the fact that the company withheld benefits can be viewed as a
violation of your rights as an employee.
- RE: "I worked when and where I was told."
Behavioral Control: Supports worker status as
employee.
The company clearly had the right to direct or control how you
performed the specific tasks for which you were engaged.
- RE: "I never was asked to sign a contract."
Relationship of the Parties: Supports worker
status as an employee.
Independent contractors work under the terms of a signed contract
with their client. The absence of a formal contract implies an
open-ended employer-employee relationship.
- RE: "Basically, they would write up a P.O. for the year
to do work for various departments and I would bill against it."
Financial Control: Supports worker status as
an independent contractor.
A purchase order indicates that the company is actually purchasing
your consulting services on a pay as you go basis.
Relationship of the Parties: Supports worker
status as an independent contractor.
The presence of a purchase order implies the existence of an unwritten
contract between you and the company.
- RE: "I was never given 1099 or W-2 forms."
Relationship of the Parties: Supports worker
status as an employee.
Employers must deduct applicable local, state and federal income
taxes as well as payroll taxes from their employees pay.
Total wages and withheld taxes are reported on IRS Form W-2, Wage
and Tax Statement, and given to the employee at the end of the
year. Employees file a copy of IRS Form W-2 with their local,
state and federal income tax returns. Companies give a Form W-2
to their employees. They do not give a Form W-2 to independent
contractors.
Companies use IRS Form 1099-MISC. to report to the IRS annual
payments over $600 paid to unincorporated independent contractors.
Companies do not have to prepare Form 1099-MISC. for corporations,
although many companies make it a practice to prepare Form 1099-MISC.
for all their vendors, even when it is not required. Backup withholding
is reported if the client withheld a 31% income tax assessment
because the independent contractor failed to supply a Social Security
number or valid tax identification number.
If the company never issued either form in the 20+ years you
worked for them, and you are not the employee of an incorporated
entity (e.g., a one-person corporation), then the company is out
of compliance whether you were an employee or an independent contractor.
The fact that the company did not pay backup withholding to the
IRS implies that they considered you to be an employee who they
were paying "under the table."
I guarantee you that the IRS will use this lack of compliance
as justification to classify you as a common law employee of the
company so that it can go after back taxes, penalties and interest.
The consequence for you will be a huge tax credit or refund (possibly
with interest) for the taxes that you previously paid during the
allowable look-back period for such matters. (I am not an accounting
or legal professional, so I can't tell you how far back the IRS
will go.) Civil courts, on the other hand may be able to go back
beyond the allowable look-back period, in which case you would
benefit even more should you sue for back benefits and retirement
funds.
In all likelihood, the IRS and your state government will view
the total amount paid to you by the company as net pay, and go
after the company for the unpaid payroll taxes and income taxes
on top of the amount they already paid you. This is good
news for you and VERY BAD news for the company.
It is my guess that the employer also never asked you to complete
either IRS Form W-9 for independent contractors or IRS Form W-4
for employees. One or the other of those forms must be kept on
file at the company. Interestingly, if the company also failed
to complete INS Form I-9 in order to verify that you are legal
to work in the United States they may also have to contend with
the US Immigration and Naturalization Service.
- RE: "I was responsible for my own estimated taxes, which
I did faithfully."
Relationship of the Parties: Supports worker
status as an independent contractor.
Good for you, but this is about what you did, and may be
irrelevant if the IRS classifies you as an employee based on what
the company did.
- RE: "I never was given the chance to increase my pay
without a real hassle, with answers like, 'I wish I could give
everybody a raise but I can't.'"
Financial Control: Supports worker status as
an employee.
Employers set the wages of their employees. Companies do
not set the rates they pay their vendors. Vendors set their own
rates and companies decide whether they are willing to pay what
the vendor charges. Also, employers give raises to their employees.
Vendors raise their own rates. Statements like "I wish
I could give everybody a raise but I can't" clearly indicate
that the company was exercising financial control as if you were
an employee.
It is also clear that you had little opportunity for profit or
loss, further supporting your status as an employee of the company.
On balance the evidence suggests strongly that you were an employee,
and that the company was paying you "under the table"
so it could avoid paying taxes to the government and avoid giving
benefits to you. That a Fortune 500 company should do this is simply
incomprehensible.
Read the accompanying article in this issue of The Contract Employee's
Newsletter concerning the matter of claims by reclassified employees
against their former client companies for retroactive benefits.
It appears to me that you have an excellent case for a lawsuit
to recover lost benefits based on your observation that you are
"now seeing people that I have worked with retiring with
full benefits, and I have worked longer."
I have several suggestions. First, do not under any circumstanses
go back to work at this company as an independent contractor, and
do not sign an independent contractor agreement with them. Don't
even work through a third-party employer of record as an agency
temp. Working as a temp at this company will only support their
contention that you were an independent contractor all along when
in fact you were clearly the company's common law employee.
Second, contact your State Department of Employment, and file a
claim for unemployment insurance. Explain to the interviewer that
you only recently became aware that you may have been an employee
all along, and ask them for a determination of worker status based
on the facts as you have explained them to me. Hell, show them a
copy of this article.
Third, contact your State Department of Labor. Ask them also for
a determination of worker status based on the facts and the determination
of the Department of Employment.
Finally, if both state agencies find that you were in fact a common
law employee of the company, I recommend that you do the necessary
research to locate an aggressive labor law attorney who specializes
in employee misclassification. I am not authorized to give legal
advice, but based on your side of the story I think you have an
excellent case against this company for full retirement benefits
and compensation for other company-paid benefits that you had to
pay for with your own money. -- Signed: Dungaree Dan
Questions for Dungaree Dan
Send your questions about contract employment to Ask
Dungaree Dan. We will try to answer all of your questions, and
we will publish the most interesting ones in The Contract Employee's
Newsletter.
Return to Table of Contents
Contract Employee's
Glossary
Terminology For Contract Professionals
More terms from Appendix
B: Glossary of Terms for Contract Professionals of The
Contract Employee's Handbook.
COBRA
COBRA stands for the Consolidated Omnibus Budget Reconciliation
Act of 1985. The provisions of this federal law require employers
who employ 20 or more persons to provide employees and their dependents
with the opportunity to continue health care coverage when coverage
would otherwise end because of a qualifying event such as termination,
death, divorce or legal separation, coverage through Medicare, or
when a covered dependent ceases to be a dependent child. The minimum
continuation period is 18 months, and the maximum continuation coverage
is three years. Some states may have more stringent COBRA laws.
For example, California requires continued coverage if the employer
employs only 12 persons.
Cold call
A cold call is a telephone call or drop-in visit made directly to
a potential customer soliciting business without prior contact.
Cold calling is the act of making a cold call.
Common law
Common law is the body of law developed in England primarily from
judicial decisions based on custom and precedent, unwritten in statute
or code, and constituting the basis of the English legal system
and of the system in all of the U.S. except Louisiana. Essentially,
common law is law that comes from common practice, as opposed to
legislation.
Common law employee
A common law employee is any worker who is determined to be the
employee of an employer based on established common law criteria.
Common law factors
Common law factors are guidelines drawn from past experience. For
example, the IRS and many state and federal agencies have issued
lists of common law factors that in the aggregate discriminate between
employees and independent contractors. The IRS once published a
list of 20 common law factors, known popularly as the twenty
questions. The list has been shortened and modified somewhat
in the 1996 IRS training manual called Independent Contractor or
Employee. The training manual identifies 11 common law factors in
three areas of control. The courts have cited at least
57 common law factors over the years in determining worker status.
Return to Table of Contents
Contract Employee's
Workshop
P.A.C.E. Launches The Contract Employee's Workshop
In Silicon Valley
We have set a date, time, and place for the long-awaited Contract
Employee's Workshop.
- Get Gigs Without Recruiters
- Bill What You Are Worth
- Keep More Of What You Bill
- Get The Benefits You Deserve
I authored The Contract Employee's Handbook, and I write and edit
twice-monthly this Contract Employee's Newsletter. I founded P.A.C.E.
over three years ago to help Contract Professionals retain the freedom
and financial advantages of self-employed Independent Contractors
while receiving The Best Benefits Package Available to Any Employee
in Any Company in The USA.
Now I bring you this one-day workshop that enhances and supplements
my efforts to give you the knowledge and tools you need to succeed
as a Contract Professional. I hope you will attend.
If you are currently a Contract Professional receiving contract
assignments through a recruiting firm
this workshop
is for you!
If you are considering becoming a Contract Professional
this workshop is for you!
The registration fee for The Contract Employee's Workshop is an
amazing bargain at just $50 per person! Bring a friend
to the workshop and receive a $10 rebate.
| |
When: |
Saturday, January 26th
8:30am - 4:30pm
|
| |
Where: |
Biltmore Hotel
2151 Laurelwood Road
Santa Clara, CA
(Map
and Driving Instructions)
|
| |
Cost: |
$50 per person in advance by January 18th
$65 per person after January 18th or at the door
(Includes all workshop materials)
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Space is limited so reserve your seat today!
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FOR
MORE INFORMATION or TO REGISTER:
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| |
Call P.A.C.E. at: |
(925) 680-0200
8am-5pm PST, Mon. - Fri. |
I look forward to meeting you in person at The
Contract Employee's Workshop!
Watch for additional dates and locations in future issues of The
Contract Employee's Newsletter.
After the initial shakedown I'll take the workshop on the road
to those cities across the US that express the greatest interest
in The Contract Employee's Workshop.
I'm open to suggestions. E-mail your ideas and suggestions to Workshop@pacepros.com
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The Contract Employee's
Project
The Contract Employee's Project is the larger context under which
the following interrelated vehicles operate to promote and defend
the interests of Contract Professionals:
Copyright and
Publication Info
Copyright (c) 2002, James R. Ziegler. All rights reserved.
You may copy or forward this free publication provided it is left
intact with all links and this notice unchanged. Any unauthorized
duplication, including republication in part or in full for commercial
use, is an infringement of copyright.
Published by:
P.A.C.E. - Professional Association for Contract Employment
1355 Willow Way, Suite 244
Concord, CA 94520
USA
http://www.pacepros.com/
Editor:
James R. Ziegler, Ph.D.
Executive Director
P.A.C.E. -- Professional Association for Contract Employment
(925) 680-0200
cenewsletters@pacepros.com
Return to Table of Contents.
Disclaimer
The Contract Employee's Newsletter is designed to provide information
in regard to the subject matter covered. Use is granted with the
understanding that the publisher and authors are not engaged in
rendering legal or financial advice. If expert assistance is required
you should seek the services of a competent professional.
The purpose of this information is to educate and entertain. The
publisher and contributors shall have neither liability nor responsibility
to any person or entity with respect to any loss or damage caused,
or alleged to be caused, directly or indirectly, by the information
contained in this Newsletter or by information contained in any
web site or resource referenced by citation or hypertext link within
the pages of this Newsletter.
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Subscribe to The Contract
Employee's Newsletter
The Contract Employee's
Newsletter: Sign Up Now! Useful News & Updates
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Sign-off
I hope you have found the information in this newsletter to be
interesting, informative, and provocative. I encourage you to share
the CENewsletter with your friends, colleagues, coworkers, clients,
and agency recruiters.
Why clients? Because you need every ally you can get. Why agency
recruiters? Because they need to know the jig is up.
Wishing you success in your contracting career,
James R. Ziegler, Ph.D.
Executive Director
P.A.C.E. -- Professional Association for Contract Employment
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