For some time now I've sat back and watched how this industry has gone awry....I have many things to point out but would take forever. Like many of you(Independent Contractor) I have felt like an employee without any say/benefits. I felt used and abused. When people used to ask what's it like being a "contractor"? I would always reply: "Say you own a grocery store, and I came in to buy a gallon of milk. Instead of paying the price on the label, I tell you how much I want to pay." The current setup of MSO->PRIME->SUB is a scam. Now it is hard to go after the MSO as a sub because you have no direct contract and the deep pockets of the MSO would bury you in a lawsuit. However, the PRIME(the middleman) is the weak link believe it or not. Before I go any further, let me say what this thread is all about. A bill was introduced in congress called the "Employee Misclassification Act of 2008"
http://www.house.gov/apps/list/speech/edlabor_dem/rel052208.html
I came across this by accident reading about the various lawsuits hitting fedex by the quote "Independent Contractors/Drivers". I could not believe what I was reading. I kept thinking to myself, "This is exactly like the cable industry situation!!". Now there is a whole lot to this topic, but basically it boils down to this:
If you do not set your own hours/schedule, you are not an Independent contractor.
If you do not determine how to arrive at the end result, you are not an Independent contractor.
If you have no control of what type of vehicle to use, you are not an Independent contractor.
If you have to wear a certain uniform and have some other name other than your company name, you are not an Independent contractor.
If you did not take part in the biding and compensation talks, you are not an Independent contractor.
As many of you know the list is endless. The issue at heart here is that companies have designated the "Independent Contractor" label so they do not have to pay insurance, taxes, liability, workers comp.....but at the same time MANDATING employee like obedience. It is immoral and illegal. Companies have been getting away with it for years but it looks like it's time to pay the piper. The fedex lawsuits have been favorable and some states have mandated that the Independent Contractors be reclassified as "employees" and be given back pay for vehicle maintenance. The other hook to fedex is that the IRS wants the $300+ million estimated loss of tax revenue by the practice. I would urge everyone to pay close attention to the fedex issue because it is the tip of the iceberg and will surely apply to other industries(especially this one). Now back to how the PRIME is the weak link, they are the ones classifying the SUB as an Independent Contractor and under the new bill they would have to prove/show that they in fact are. Now I know what you are all thinking..."Yes we dictate every aspect of their lives, but they are still Independent your Honor". Now this practice could have gone on forever, only problem is there is a growing number of pissed off Contractors that would rather stay home than pay $4 a gallon to go do a $5 box upgrade and get charged $75 for a service call that had nothing to do with the box upgrade based on the "last tech there mentality". Yes sir, I have plenty of time to research this stuff and urge you to do the same. I guess that's why direct is going employee based contractor....thinking ahead maybe......can't wait to share with local law enforcement and IRS some of the practices of some of my former PRIMES..........out!
Here it comes.....
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