Misclassified independent contractor -- the norm in Houston

[winkosmosis]

Originally Posted by move4ward

The contractors aren't starving. The contractor rates are equivalent to permanent employees. In some cases, it's higher.

Take a look at the rates.IT Contractor Site and Government Site Labor Rates | GSA Schedule 35F - 0306J | Booz Allen Hamilton

Yes, it's not to save money but to avoid any kind of hassles with firing people. I guess workers who make $180k aren't going to complain, but it's generally bad for the worker. We have to pay more taxes and don't get unemployment insurance.

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[GTRdad]

Originally Posted by move4ward

The contractors aren't starving. The contractor rates are equivalent to permanent employees. In some cases, it's higher.

Take a look at the rates.IT Contractor Site and Government Site Labor Rates | GSA Schedule 35F - 0306J | Booz Allen Hamilton

They pay me 2x plus OT

[winkosmosis]

Originally Posted by move4ward

The contractors aren't starving. The contractor rates are equivalent to permanent employees. In some cases, it's higher.

Take a look at the rates.IT Contractor Site and Government Site Labor Rates | GSA Schedule 35F - 0306J | Booz Allen Hamilton

Wait, those aren't rates paid to illegal contract workers... those are the rates that BAH charges its gov clients. The workers are employees of BAH.

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[winkosmosis]

I got laid off so this turns out to be a significant disadvantage because I can't get unemployment. I've heard of people filing for unemployment after being contractors, and the state goes after the employer, but how would I do that? I can't file against the actual employer because I have no written contract with them, and of course the company I do have the contract with didn't employ me directly.

[MSchemist80]

It doesn't matter what kind of shell games companies play with other companies. If you went to work at a company and had a boss overseeing you, you need to be an employee either of the agency or client. I'm not sure who would get stuck paying the penalities the client or agency. The agency may be seen as simply a payroll processor and you might get found a common law employee of the client or the agency may be forced to pay for your payroll taxes. You'd need to start by filing an ss-8 with the IRS then I'm not sure the process at the state level you should talk to the DOL. I do know the IRS takes years if at all to make a decission. I never got a decission and this has been 3 years.

[MrWillys]

I would go see the employment office, because maybe there's benefits from your last job. Independent contractor is the most abused law in the US, and should be enforced. You lose out on Social Security that you must pay yourself, or just cheat the rest of us like most do!