Remote work and computer rental

[torimac]

What is the name of your state (only U.S. law)? TX

I work for a company that is a contractor for a government organization. When I started, we were given the opportunity to work from home. Everyone who does not have to be onsite full time, such as facilities and tech support, works from home at least two days a week. It is not in writing with regards to my offer letter that I work from home, but in order to work from home I had to complete paperwork for the govt organization to approve and assign such work. So the paperwork states that I am approved for telework for 2 days a week and specifies the days and times. For the past two years, I have been using my own computer to log in from home. The company does not reimburse employees for use of personal computers.
Fast forward to today. Due to increase security, we are no longer allowed to use personal computers. We either have to use a govt issued laptop or a company issued laptop (with an approved image on the system) in order to teleworking.
My company is one of the few contracting companies that has decided no to provide laptops. Instead, if we want to continue working from home, they will rent us a laptop for 2k a year.
I understand that I have no contract that requires the company to have me work from home but there is a presumption that I do work from home on certain days based upon the paperwork. But is it legal for them to rent me company equipment instead of providing the necessary equipment?

 

[cbg]

Unless there is something specific to government contracting that prohibits it, I can't think of anything off the top of my head that makes it illegal. But I've only had one cup of coffee so far this morning so I'm not going to swear I'm not overlooking something.

Petty, penny pinching, bad for employee morale; yes, it's all of these. But unless the 2K would bring you below minimum wage/the floor for exempt salary (whichever is appropriate to your situation) I can't say it's illegal.

This assumes that you yourself are an employee as opposed to an IC. If you're an IC it's definitely legal.

 

[torimac]

No, we are not ICs. And yes, all the penny pinching is dragging on employee morale. The company is acting like it is still 2008, although they did brag at the holiday party about how much money we made for them.

I did not think it was illegal, but I thought I would check.

 

[LdiJ]

No, we are not ICs. And yes, all the penny pinching is dragging on employee morale. The company is acting like it is still 2008, although they did brag at the holiday party about how much money we made for them.

I did not think it was illegal, but I thought I would check.

While I agree that its not illegal, the rental price, in my opinion, is way high. You can buy a heck of a laptop for that price.

 

[cbg]

It's not out of line for a rental, though, at least not in my area. And the whole point is that they won't allow the use of personal computers anymore.

 

[LdiJ]

It's not out of line for a rental, though, at least not in my area. And the whole point is that they won't allow the use of personal computers anymore.

Are rental laptops expected to last for a year or less? A very high end laptop can be purchased for 1200.00, which would give them an 800.00 profit on the rental if the laptop only lasted for a year. That is the point that I was making. I can understand renting the laptops, but making a profit off of renting them to their employees seems more than a bit greedy.

 

[FlyingRon]

Are rental laptops expected to last for a year or less? A very high end laptop can be purchased for 1200.00, which would give them an 800.00 profit on the rental if the laptop only lasted for a year. That is the point that I was making. I can understand renting the laptops, but making a profit off of renting them to their employees seems more than a bit greedy.

Yes. The problem is computers depreciate quite rapidly. Buying is almost always cheaper but leases are advantageous in government contracts. The lease you can bill through 100% as an expense (even get your fee on top of it in many cases). Purchases, have to be accounted differently in the overhead.

 

[LdiJ]

Yes. The problem is computers depreciate quite rapidly. Buying is almost always cheaper but leases are advantageous in government contracts. The lease you can bill through 100% as an expense (even get your fee on top of it in many cases). Purchases, have to be accounted differently in the overhead.

True, but I have several business clients who lease their computers and they pay no where near that much. Our firm leases computers to our franchisees (if they prefer not to purchase their own) and we charge only about a 10th of that.

However, if the OP itemizes deductions they can deduct the cost of the rental on form 2106 and Schedule A.

 

[Zigner]

In this case it's not really the computer that's being rented...it's the government level security and monitoring.

 

[Stephen1]

You said "We either have to use a govt issued laptop or a company issued laptop"

Sounds to me like you will using a company issued laptop. Unless the govt contract specifies that the computer must be owned by the contractor, then the contractor is meeting its obligation. Whatever other requirements the government may have for those computers to be used are the contractor's problem. They just need to issue you one that meets the government's requirements.

 

[Zigner]

What is the name of your state (only U.S. law)? TX

I work for a company that is a contractor for a government organization. When I started, we were given the opportunity to work from home. Everyone who does not have to be onsite full time, such as facilities and tech support, works from home at least two days a week. It is not in writing with regards to my offer letter that I work from home, but in order to work from home I had to complete paperwork for the govt organization to approve and assign such work. So the paperwork states that I am approved for telework for 2 days a week and specifies the days and times. For the past two years, I have been using my own computer to log in from home. The company does not reimburse employees for use of personal computers.
Fast forward to today. Due to increase security, we are no longer allowed to use personal computers. We either have to use a govt issued laptop or a company issued laptop (with an approved image on the system) in order to teleworking.
My company is one of the few contracting companies that has decided no to provide laptops. Instead, if we want to continue working from home, they will rent us a laptop for 2k a year.
I understand that I have no contract that requires the company to have me work from home but there is a presumption that I do work from home on certain days based upon the paperwork. But is it legal for them to rent me company equipment instead of providing the necessary equipment?

It doesn't sound to me like they're forcing you to rent the computer in order to work for them.

 

[Stephen1]

It doesn't sound to me like they're forcing you to rent the computer in order to work for them.

I see a difference in understanding between Zigner and me regarding who is renting the computer.
- I understood the employer was renting a computer for the employee to use from home.
- It looks to me like Zigner sees the employee renting the computer.

It might make a difference to our answers (or at least the answers might make more sense) if OP clarifies this.

 

[Dave1952]

I see nothing illegal in the company leasing computers and software to their employees for home use. The OP should consider the cost of commuting and buying lunch et c., then compare that to the rental fee. Obviously the OP will be paying for something. If she's unhappy then it's resume polishing time.