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A Crackdown on Cheating Companies - article in Parade
Posted: Apr 10, 2010
I just bought the early addition of the Sunday paper, and interestingly enough, there is an article with the above-mentioned title on page 16 by Rebecca Webber. It talks about the high percentage of jobs being created for contractors and consultants. Unfortunately, many of these companies are misclassifying the workers as contractors when they are in fact being treated as full-time employees. Sound familiar, ICs?
Obama has allocated 25 million to the Dept. of Labor to combat employee misclassification by hiring additional investigators who will audit, find and fine these companies. Individual states are also fighting back against this practice as it not only victimizes the workers but also the honest businesses who are being underbid or outpriced by those who illegally cut costs.
yesssss - no message, just ysssss
[ In Reply To ..].
Watch what you wish for - Greenjeans
[ In Reply To ..]There could come a negative reaction if the government steps in.
Worked for MQ when folks were working many hours over 40 per week and not being compensated. Department of Labor investigated and awarded cash to those found to have been underpaid. Don't know if you're familiar but MQ then instituted the dreaded E-time (time clock) which made life a living hell.
I recently got a job as IC with an MTSO. Was told they do not hire employees anymore, only IC status because with the current business climate the way it is with competition coming from those companies that off-shore, they would no longer be able to offer a liveable line rate as providing employee status would be cost prohibitive. I'm not saying it's right or that I agree with it, but it is what it is.
Greenjeans - I agree with you - 1mt
[ In Reply To ..]I've been an IC for 10 years. There have been times where I felt like I was an employee and was pretty irritated with the MTSO that I "work for." They were investigated at one time and I originally hoped that it was found that they were not treating us as ICs. This MTSO only hires IC status. However, after thinking about it, I changed my mind, realizing that if that happened, they probably would go out of business, and then I would be without a job and $$. They are not one of these larger national MTSO's and I don't think they could make it if we were all employees, especially now with losing accounts to VR, which they do not do. I too don't agree with the MTSO's treating IC's to a certain extent as employees and I believe that the MTSO's definitely make out on it financially, but it is what it is. I love the freedom I have with my current IC status and don't want to lose what I have.
Maybe if they DID go out of business there would be less illegal - business practices.
[ In Reply To ..]I would never work for any company that did that as I would feel I'm party to the illegality by accepting it. If I have to question that I may not have a contract because the company closed down because they were investigated, I definitely wouldn't feel secure doing business with them. If they cheat the government, they'll cheat you too.
I can understand costs being prohibitive, etc. - sm
[ In Reply To ..]What I don't understand is who they think they're fooling when they feed us this line and then follow it up with...oh, and you need to work Tues through Sat or Sun through Thurs. Your schedule is flexible in that you can choose what schedule you want to work. We have 8 to 4 or 9 to 5 or split it and work 8 to 12 and 4 to 8, yada, yada, yada.
THAT'S what they need to clamp down on.
I guess I'm lucky in that I don't have to deal - 1mt
[ In Reply To ..]with that kind of thing. I have my set accounts from 2 different MTSO's and I do my work whenever I want throughout the day, as long as I get it done within 24 hours. I think the only way to be a true IC is to get your accounts on your own, not through an MTSO, then you can negotiate with the client how much and when you will get paid, TAT, vacation, etc. But, then you also have all the other responsibilities that come with that, whereas working as an IC for an MTSO, I just simply do my work and get paid. Any troubles with the voice files, getting accounts, covering for vacation/sick, etc., the MTSO deals with that. Again, though, there are definitely occasional issues that make me feel more like an employee, but these limited problems don't make me wish ill fate on the MTSO's I work for. There are definitely more restrictive IC positions out there that sound like employee status.
Wow! Link to full article...sm - anon
[ In Reply To ..]I will be adding my two cents and sending them my list of MTSOs that I know are not in compliance.
Cheating companies, question - Alice
[ In Reply To ..]I know how to file a question/complaint with the IRS regarding a company that I already work with, but how does one go about reporting other companies, based on experience during the recruitment process when work was never actually completed for them?
Again, watch what you wish for - Greenjeans
[ In Reply To ..]Again, if this happens, be prepared to either work for a ridiculously low line rate or not be able to find work at all. The competition from overseas has us in a very bad position right now. Unless things change in this regard,I'm afraid to rock the boat. At least now I can make some $.
Bull! So the cheating companies should....sm - anon
[ In Reply To ..]have an advantage over MTSOs who are operating legally and force them out? That is the same line of thinking that has people accepting a job for five or six cents a line because if they don't the work will go to India.
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