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IC contracts - wiseoldwoman

Posted: Oct 21, 2014

The company I work through as an IC has made changes to our pay rate and the line count minimums without the benefit of having us sign new contracts (our previous contracts do state our pay and the line count requirements). Management contends this is completely legal. I disagree. Any thoughts?

They are just being lazy...SM - Old Anon

[ In Reply To ..]
of course they should issue you a new contract with the new terms. I would continue billing them at the old rate (if you can) until such time as you get a new contract, signed, sealed, and delivered. If you can't do that, keep track of how much you are being shorted each pay period; and if an when you leave, you can bill them for the shortage and/or file in small claims for what they owe you. I don't know how you could push them to issue a revised contract without being let go. They know they have you over a barrel.

They don't pay attention to the contract when - they want a change.

[ In Reply To ..]
They will only use it to their benefit. If they breach the contract they feel that you won't do anything about it so what the heck. It's not worth the paper it is written on.

What's in your contract? - sm

[ In Reply To ..]
Is there a clause in your contract about payment? If a specific rate is in the contract, that cannot be changed. I posted this link on another board, along with some other links. You should read them over. The link below are tips on what you should include in your contract.

in the contract - wiseoldwoman

[ In Reply To ..]
Yup..specific rate and line count requirements, both of which have been changed.

That is breach of contract. - sm

[ In Reply To ..]
You do have legal recourse here. If you take no action they will continue to do this. You will probably lose this client, but you are probably going to lose them anyway. Unless of course you do nothing and continue on without a valid contract, in which they will have learned nothing. I can't imagine that the person who represents your client would go to the doctor or dentist after being seen as a patient and say "your office visit is too high, I'm only going to pay half of your fee because that is what I think it should be." If that were to happen, that doctor would turn them over to collections. It is no different in your case, and you have a contract stating payment. The scenario I just made up, no contract was involved. If you hired a contractor to work on your home, a contract would be signed agreeing on payment and date of completion, if after the work is finished and you decided the original agreed upon rate was too much, you cannot tell the contractor his fee was too high and you are only going to pay a portion of it, you would be in collections and/or sued for the remainder of the money owed. They have to honor the original agreement. Below are the two links with further info. I hope it helps. Keep us posted.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Defined

IC contracts - Grandy

[ In Reply To ..]
Alpha, by any chance?

contracts - wiseoldwoman

[ In Reply To ..]
Not Alpha.

IC contracts - Grandy

[ In Reply To ..]
Alpha did this after they sold out to a foreign company, who is now profiting from government contracts using our tax dollars.

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