Advice on Contracting

Self | 12 May 2005 | <self>

[Lexinom]

I would like some advice on my rights as a contractor.

I have been doing contract work based on a verbal contract for the last year for a small company. At the present time, we are completing a project. They have paid me for overtime according to my rate, but have not provided any vacation time. The CEO says they have given me vacation on the basis that one week I was not able to work due to connectivity issues (everyone else was gone) - nonethess I was asked to work, ready to work each day either remotely or on site, and was not able to due to their own network issues. Given the work demanded of me over the last year, I am quite burned out and could really use a break. Instead, I get an earful.

Presently I am on the health plan with a child on the way in the next couple of weeks. This is the main reason for staying. I am not easily replacable - the company is small, and the type of work is not something anybody could jump in and do. Therefore I am not too worried about termination (they would in effect be terminating themselves as the work would not get done for many months it would take to train). Still, if the unprofessional conduct reaches the point where I must leave on my own, could I get Cobra or some other plan that would kick in right away? Baby is due early June.

I would appreciate if you have a similar story to share, and of course any advice...

[politicket]

As a contractor you probably should not be eligible to participate in their employer health care program either.

That is an excellent point! Are you currently getting health coverage through this company? Or is a job shop providing it for you?

If the company that you are going to each day is providing health coverage then I would be VERY careful since the IRS will indeed regard you as an employee. Things can get very twisted from all sides when this happens.

[Lexinom]

This company sought me out this time around, not vice-versa, so there's no job shop involved. The health care is on a friendly trust basis, and because I asked for it when my wife found a lump in her breast (which was not serious as it turned out).

I don't want to screw them over - I have friends there - just want to be able to take care of my own needs. Hopefully I will get the time off when the wife has the baby. Technically, I could take the time now and all they could do would be to try to replace me, but I won't do that to them, not so close to an already-late release.

[politicket]

I'm glad that everything worked out health-wise for your wife.

I'm just pointing out that the IRS could come after YOU as well as the company since you are working as an employee according to IRS rules. I would sincerely suggest somehow getting the relationship with this company straightened around, since an IRS audit is a major hassle and could be financially detrimental to both the company AND you.

[Lexinom]

I doubt it. We're paying them thousands of dollars each month for the privilege of working.

I've got enough worries and don't need to borrow any more trouble. Worrying never solves anything.