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Microsoft Labor Law

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Anne McLeod

Guest
California - I understand that the Microsoft Labor Law deals with the amount of time a company can use a temporary employee without hiring that person, unless a specific time has lapsed (one or two years). After that time if the position is still opened, the company must hire that temporary employee.

My question is: Is that time frame one or two years before the temporary employee must be hired?
 


I AM ALWAYS LIABLE

Senior Member
Anne McLeod said:
California - I understand that the Microsoft Labor Law deals with the amount of time a company can use a temporary employee without hiring that person, unless a specific time has lapsed (one or two years). After that time if the position is still opened, the company must hire that temporary employee.

My question is: Is that time frame one or two years before the temporary employee must be hired?

My response:

What is "Microsoft Labor Law"?

I always thought it was the "California Labor Code." Could it be that you're generically using that term from "case law"? If so, what is the cite? I'd like to look it up and read it.

IAAL
 

Beth3

Senior Member
Anne, the court ruling on the Microsoft issue was that they unlawfully misclassified thousands of individuals as Independent Contractors in order to avoid providing benefits (health ins., retirement plan, etc.). This was a violation of ERISA regulations and federal IRS and DOL reg's as well - tax weren't withheld, FICA matching contributions weren't made, and so forth.

I'm not an expert on the decision but it did not result in a requirement that employers may only keep individuals on as temps or contractors for a specific period of time and a mandate that the person MUST be hired as an employee at the end of that time. You may keep an employee on temp status as long as you wish, provide the reason for doing so is not to avoid offering them participation in the employer's benefit plans. Additionally, an individual may be considered an IC as long as they meet the lengthy criteria required to appropriately have that status.

You're operating on misinformation on the significance of the decision: (1) don't treat employees as independent contractors (nothing new there) and (2) don't classify employees as temps or IC's in order to avoid offering them participation in the employer's benefit plans (nothing new there either.)
 
R

Ramoth

Guest
Beth3 - I think there was another element to the Micro-serf lawsuit that did apply to temp workers. Microsoft's "temps" had no contact with the temp agency outside of the name on their paychecks. Hiring, firing, promotions, transfers, training, raises, etc were ALL done by Microsoft, so the judges ruled that the "temps" were really employees, and thus eligible for benefits.
 

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