• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Contractor Forever?

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

M

musik

Guest
What is the name of your state? Pennsylvania

I am a 40 hour a week contractor for a technology company. I was hired several years ago, along with a bunch of contractors with the promise of benefits - but it never happened. Even though the economy went south and over 3/4 of us were laid off, the remaining people are in the same situation (some of them are close to 10 years!). The employees of this company are entitled to generous options, benefits etc.. but yet there are several times we don't even get our paychecks in any timely matter. My questions are:

1. Is there a certain amount of time that a contractor, after working 40 hours for years for a company is not technically seen as a contractor anymore but an employee. (Are we being treated fairly as workers in "contractor" status and not employees who have benefits, options etc? Is their technical loophole-of-a-classification of us legal?

2. Do we have any rights to get our paychecks in a timely matter. Sometimes we have to wait days to even a week!

Thanks.
 


Beth3

Senior Member
1. No, there is no time limit on how long someone can be employed as an independent contractor. Whether you and others are appropriately classified as IC's in the first place is a very difficult question. Both the DOL and the IRS have stringent guidelines as to the criteria that must be met for IC status.

2. I presume that when the company promised benefits down the road to everyone, the economic picture was much brighter and the employer didn't forsee they'd have to lay off 3/4 of their employees/contractors. An employer is not required to have a crystal ball and "promises" almost always fall in the category of what an employer INTENDS to have happen and is not a contractual committment.

3. If you're an IC, you don't actually receive a paycheck. You are basically paid via accounts payable, the same as any other vendor and sometimes payments are late if there are cash flow problems. If you aren't paid for services rendered, your option is to sue, just like any other supplier of good or services would have to do. If you don't like the fact that your compensation is late periodically (who would?), then you also have the option of seeking new employment or a new consulting arrangement in a more stable environment.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top