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Microsoft Loses Temp Appeal
Robert Wilde writes "The Supreme Court has turned down Microsoft's appeal of a ruling, allowing 10,000 temporary employees to sue for benefits such as the right to purchase Microsoft stock at a 15% discount. This lawsuit has implications for permatemps throughout the tech industry." I'm actually interested in seeing how many of the temps take Microsoft up on buying stock options.
I find it terribly interesting that people shout back and forth about "I'm an employee!", "I'm an independent contractor!" or some other such thing without the foggiest notion of what they *actually* are. In fact, the definition of employee and of independent contractor are matters of law. No contract that you can sign between yourself and someone who pays you money can change that. If the contract says you're an independent, if both parties agree you're an independent, if nearly everyone accepts that you're an independent BUT your individual circumstances meet the definition of an employee, then you ARE an employee. Period. You can sign contracts and make agreements to the contrary all day long and it doesn't matter one whit.
Different agencies at the federal, state, and local level work under different statutes. And yes, they are a mess, generally using vague language that may well result in someone being an employee to the Internal Revenue Service but an independent contractor to the Department of Labor. Or vice-versa. Most agencies, though, wind up falling back on the 20 common law factors used by the IRS or a variation thereof. (That situation is in flux right now, but the 20 common law factors still rule for tax purposes, even if the new kinder and gentler IRS is so gun-shy that they're not really enforcing them.) Take a look at them on IRS Form SS-8, Determination of Employee Work Status For Purposes of Federal Employment Taxes and Income Tax.
Work through that form and you might be surprised. I think a lot of "independent contractors" will find that they are actually employees. And if they're employees, aren't they entitled to the benefits a company extends to employees?