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HP Contract Workers Sue For Recognition

manganese4 writes "The Idaho Statesman is carrying the story of 33 local Boise HP contract workers suing HP. They claim that they were expected to perform at the same level of expectations as HP workers and thus should be given the rights and privileges of HP workers. HP claims the suit is without merit." From the article: "The suit seeks to represent 3,000 workers in Boise and elsewhere in the company and could involve as much as $300 million, according to the complaint."

113 of 603 comments (clear)

  1. I never understood.. by grasshoppa · · Score: 3, Funny

    I never understood how these things work: Do some lawyers wake up in the morning and decide, "Hey! I need a new pool. Hmmmm, I think I sue HP today. Now, let's find a reason.".

    That's really how it looks, and it would make me feel slimy to take part in something like that.

    not that HP doesn't deserve, but that's not my point.

    --
    Mod me down with all of your hatred and your journey towards the dark side will be complete!
    1. Re:I never understood.. by velo_mike · · Score: 4, Insightful
      I never understood how these things work: Do some lawyers wake up in the morning and decide, "Hey! I need a new pool. Hmmmm, I think I sue HP today. Now, let's find a reason.".

      Yes, actually there are some who do that. It's the same at the local level, where some lawyers pay interns to stand at the local police station photocopying accident forms.

      not that HP doesn't deserve, but that's not my point.

      So this person voluntarily entered into a contract with HP (well, with a subcontractor of HP), with the understanding that she would be paid X dollars in exchange for Y hours work, with no additional compensation expected on either side. Fast forward a couple years and now we're supposed to let her renegotiate the contract BACKDATED TO THE START because she's changed her mind? Screw that, it's called a learning experience, next time take a FT job, not a contract.

      --

      At the bottom of the endless pile of paper work which characterizes all regulation lies a gun.
      Alan Greenspan

    2. Re:I never understood.. by Daengbo · · Score: 3, Funny

      More money sticks to you when you're all slimy, so it all works out...

    3. Re:I never understood.. by NeoSkandranon · · Score: 2, Insightful

      Why should the injured party not be expected to be responsible for themselves and contact a lawyer, rather than the other way around, lawyers fishing for cases, which could result in meritless crap clogging the courts

      --
      If you can't see the value in jet powered ants you should turn in your nerd card. - Dunbal (464142)
    4. Re:I never understood.. by hal2814 · · Score: 2, Insightful

      "So we should just allow large corporations to manipulate the job market in collusion?"

      I hate to be the one to tell you this, but these "large corporations" of which you speak are competitors. They're not in collusion with each other (for the most part), because the ones competeing over the same workers usually provide the same services and/or products and would like to see each other fail for that reason.

      There's not some grand conspiracy on the part of corporate America to keep traditional W2 jobs from existing. There are simply many valid reason from a financial standpoint to contract employment when possible. If you want to start pointing fingers over companies contracting instead of hiring, point them at the US tax code and employment laws. The US gov't set the rules of the game. These large corporations are just playing the game to their maximum advantage.

    5. Re:I never understood.. by Qzukk · · Score: 4, Insightful

      So this person voluntarily entered into a contract with HP (well, with a subcontractor of HP), with the understanding that she would be paid X dollars in exchange for Y hours work, with no additional compensation expected on either side. Fast forward a couple years and now we're supposed to let her renegotiate the contract BACKDATED TO THE START because she's changed her mind? Screw that, it's called a learning experience, next time take a FT job, not a contract.

      So you've seen the contract and it says that Loser X will work N hours for $P pay? And Loser X worked N hours for $P pay? If thats true, then the suit really is baseless. But take a look at the behavior of the electronics industry with respect to its contractors recently: We have EA, for example, who worked people for 60-80+ hours a week, which was by contract (expected overtime), then at the end of the project said, "Yeah, I know we usually let you comp all that overtime after a project is done, but I think we'll just take our overtime back this time and not give you any time off or any extra pay, and assign you to new projects". Hardly "fair" "legal" or "by the contract" by any stretch of the imagination.

      So the way I see it, there MIGHT be merit to the case. They could be working these contract workers overtime with no overtime pay or comp time, they could be assigning them jobs above and beyond their contractual role, if they're hourly they could be forcing them to "touch up" their time sheets, or any number of other abusive things. They may have been told the positions were contract-to-hire. Work for us 3 months and we'll hire you as soon as possible (4 years ago). The subcontractor may have misrepresented themselves as HP, rather than as a subcontractor. They may have gone for years unwilling to rock the boat thanks to the shitty economy.

      Or it might just be a bunch of whiny brats who decided they wanted to be FTE's after all. They got themselves a fancy lawyer and figured that what they couldn't get from the HR department they'd take from the company's hide.

      Either way, we'll see the truth when it comes out in the courts.

      --
      If I have been able to see further than others, it is because I bought a pair of binoculars.
    6. Re:I never understood.. by Anonymous Coward · · Score: 5, Informative

      Employment law supercedes contracts quite often. you can't contract for something that is illegal, and it is illegal to treat people in certain ways, even if they agree to it in writing.

      If the employment terms can't pass certain tests that distinguish them (the contractors) from the regular employees, then regardless of contract, they are employees and deserve the same benefits that a regular employee enjoys.

      If it was simply a contract dispute, you'd have a point. If the argument is that the contract is illegal, or meritless in certain areas, then you don't. And without seeing the contract, and the full text of the labor laws of Idaho, speaking from knowledge based on osmosis from your wife is slightly ill-advised.

    7. Re:I never understood.. by Macadamizer · · Score: 5, Insightful

      You hit the nail on the head -- it doesn't matter if a company calls someone a contractor or not -- they are a contractor if they meet certain criteria, otherwise they are employees.

      You can look here for some information on how Idaho figures out if someone is an employee or a contractor.

      Company's also like to classify people as "exempt" to avoid paying overtime -- but again, it doesn't matter whether the employer calls someone exempt or not -- it all depends on whether or not someone can meet the criteria of being exempt.

      If these people really meet the definition of contractors, and are just now complaining, then the hell with them. But if they are really employees, well, that's why we have labor and employment laws.

      I'm pretty much a free-market type of guy, but unfortunately you just can't put an employer and an employee on equal footing as far as bargaining power is concerned -- the employee almost always needs a job more than an employer needs to hire that particular individual -- so we have labor and employment laws to keep the employers from completely screwing their employees...

      --

      "That's not even wrong..." -- Wolfgang Pauli
    8. Re:I never understood.. by Macadamizer · · Score: 5, Informative

      So this person voluntarily entered into a contract with HP (well, with a subcontractor of HP), with the understanding that she would be paid X dollars in exchange for Y hours work, with no additional compensation expected on either side. Fast forward a couple years and now we're supposed to let her renegotiate the contract BACKDATED TO THE START because she's changed her mind?

      But a contract isn't valid if it requires a law to be broken. And in all states in the U.S., you can't just call someone a contractor and have that be the end of it -- every state has there own checklist of what is a contractor and what isn't. Just because you have someone sign a contract saying they are a "contractor" doesn't mean that contract is valid -- they actually have to meet the test to be a contractor.

      It's like the whole exempt versus non-exempt worker -- employers like to classify workers as exempt, so they don't have to pay them overtime. But the laws don't let the employer decide who gets overtime and who doesn't -- there are a set of rules that define what the duties of an exmpt employee are, and if an employee doesn't meet that test, then classifying them as exempt is against the law, and any contract specifying otherwise is void.

      Now, who knows if these contractors who are suing meet the Idaho definition of contractor or not -- but the whole idea that a contract is the be-all-end-all is incorrect.

      --

      "That's not even wrong..." -- Wolfgang Pauli
    9. Re:I never understood.. by Jim_Maryland · · Score: 2, Interesting

      You can look here for some information on how Idaho figures out if someone is an employee or a contractor.

      Do you know if a difference exist between "contractor" and "independent contractor"? From what I've read, the people suing HP worked for a company that was contractor to HP so I am not sure "independent contractor" necessarily fits in this case.

    10. Re:I never understood.. by pizzaman100 · · Score: 3, Informative
      I never understood how these things work: Do some lawyers wake up in the morning and decide, "Hey! I need a new pool. Hmmmm, I think I sue HP today. Now, let's find a reason.".

      Actually, this particular lawyer is well known and respected in the state. He is a former Idaho Supreme court member, and also was a Democrat candidate for governor in '98.

  2. Contract by Anonymous Coward · · Score: 2, Interesting

    Contract! That should be enough information right there.

    This is nothing new. It seems that at some point or another, all contractors suddenly feel that they are no longer contractors but rather employees. With entitlement no less.

    The case is without merit but, not without precedence.

    1. Re:Contract by pommiekiwifruit · · Score: 2, Interesting
      Certainly the Inland Revenue Department in the UK feels that way...

      They don't like employers pretending people are "contractors" to avoid tax.

    2. Re:Contract by plague3106 · · Score: 2, Interesting

      I'm a contractor. I'm not paid by the hour. I have benefits from the company I'm technically an employee of.

      However, the dress code, my hours, my responsiblities, even my time off requests are through the company I'm working AT.

      My only contact with my company is the paycheck they send me, and the ocassional 'how are you' phone call.

      I feel more like an employee of the company I'm working at than the one I'm working for. But I haven't been here long enough to know if this is a temp job or a perma-temp job. If I had been I might feel as these people, because I know I'm much more underpaid then a FTer is. (I presume because my employer charges a full amount for me and takes his cut).

      However I decided to move on to a real FT job, not knowing if one would ever open up here. I'd love a FT position, but I just don't know when one would be available.

  3. They're right, this has no merit... by garcia · · Score: 5, Insightful

    Jennifer Miller of Nampa is one of the plaintiffs. Miller said she was employed by HP in Boise from 1989 to 1995, when she took a severance package and left the company. She returned later in 1995 as a contract worker and worked at HP until March 9. Part of the time she was a contract employee through Veritest and Manpower Professional. Her jobs included testing software for HP printers.

    Umm, I have never heard of anything like this before. Temp agencies hire employees, charge the companies their employees work at, and then pay (and give benefits if applicable) to their employees from that.

    Since when are you owed money/benefits from a company you really don't directly work for?

    1. Re:They're right, this has no merit... by Anonymous Coward · · Score: 4, Informative

      As the IRS and Microsoft worked out, a "temp" employee working for some period of time, like over 5 years, eventually crosses that gray fuzzy line and actually isn't a temp employee anymore.

      The same doom and gloom was predicted for Microsoft before that permatemp lawsuit was won by the permatemps.

      I don't know, though, who's won the war.

      It's nice as a contractor, when things at the company are very chaotic, knowing you're just a contractor and your boat doesn't really sink or swim with the fortunes of the company for a variety of reasons. Sure, you might be out of a gig, but it's just a gig. There will be others.

    2. Re:They're right, this has no merit... by gstoddart · · Score: 5, Informative
      Umm, I have never heard of anything like this before. Temp agencies hire employees, charge the companies their employees work at, and then pay (and give benefits if applicable) to their employees from that.

      Since when are you owed money/benefits from a company you really don't directly work for?

      In this case, the contractors are claiming that for all intents-and-purposes, they functioned more like actual employeed than a contractor. They're use IRS defintions to back their case.

      If the company can have you classed as a contractor, they save mondo money on not paying you benefits. They're saying they did the same work in the same office and effectively get discriminated against.

      As I recall, a similar situation used to (does?) exist at Microsoft -- people could stay as contractors for years in the same position. They got none of the perks and benefits, and were effectively second-class citizens (or so I've heard, I've never even been to Washington State).

      These people are trying to get themselves recognized as being actual employees, or at least equivelant.

      Cheers
      --
      Lost at C:>. Found at C.
    3. Re:They're right, this has no merit... by garcia · · Score: 3, Informative

      If the company can have you classed as a contractor, they save mondo money on not paying you benefits. They're saying they did the same work in the same office and effectively get discriminated against.

      If you work through Manpower (as the employee the article listed) you do NOT work for HP and regardless of what work you do there you are NOT owed benefits/compensation from them.

      You work for Manpower and should be arguing with THEM for better pay and benefits more in line with your current working conditions.

    4. Re:They're right, this has no merit... by Mr.+McGibby · · Score: 4, Insightful

      You need to learn actually read some tax law since you obviously don't know what you're talking about. The IRS doesn't allow companies to get around actually hiring people by calling them contractors. If someone looks, acts, and is managed like an employee then they MUST become such. That is the LAW. Read it sometime.

      --
      Mad Software: Rantings on Developing So
    5. Re:They're right, this has no merit... by MadMorf · · Score: 3, Informative

      As I recall, a similar situation used to (does?) exist at Microsoft -- people could stay as contractors for years in the same position. They got none of the perks and benefits, and were effectively second-class citizens (or so I've heard, I've never even been to Washington State).

      All true.

      The result is that contractors at Micorsoft NOW can only work for 12 months and then are required to leave the contract for 100 days, before they can be rehired to work on the contract for another 12 months.

      There are a whole bunch of contractors working that way at Microsoft's support center in Charlotte, NC.

      One of my current co-workers has been through the cycle twice and is going back again in May.

    6. Re:They're right, this has no merit... by plague3106 · · Score: 2, Insightful

      Except that if HP says they no longer need the contactors, their position at Manpower would likely end as well too. Which is part of their arguement...Manpower doesn't really have anything to do with the contractor, its HP making all the decisions. Manpower just reviewed some resumes..

    7. Re:They're right, this has no merit... by soft_guy · · Score: 3, Interesting

      I worked there as a contractor. I did not like being treated the way I was treated as a non-employee. There were certain meeting you couldn't go to, etc. (usually ceremonies, etc. - not secret information of any kind).

      Anyway, I left because I didn't like it. They were real pissed when I left too. They tried to guilt me into staying by saying "But you signed a contract saying you will work here!". Of course the first paragraph of the contract said that I could leave anytime and they could fire me anytime. These idiots always want to have it both ways. Fuck em - I can find work elsewhere.

      --
      Avoid Missing Ball for High Score
    8. Re:They're right, this has no merit... by Procyon101 · · Score: 2, Informative

      Hey. I'm a contractor at Microsoft.

      I make more than the employees.
      Enough more that I can buy all the benefits they have and still have more left over.
      I am immune from company politics. I can always hide behind the "I don't work here" shield.
      I can leave anytime I want and come right back on good terms.
      I can switch positions, or entire departments with ease, so my job is varied and interesting.
      My networking is very strong, being in the contract industry, so I can change entire companies with ease... I am not tied to MS for an income and am not worried about losing my MS job. In my opinion I have more security than FT employees.
      All this and the tradeoff is I can't use the company gym... bid F. deal.

      It used to be much better than this... I USED to be able to work year round, taking a break whenever I want, but since the crappy lawsuit I have a manditory 90 days off work every year... YEAH... That lawsuit sure did alot of "protecting" of me. What it did is put money into the pockets of some lawyers and make everyone involved jump through some more hoops of additional regulation.

      These people signed up for a good deal, with many benefits and a fw tradeoffs. Now they want to get the best of both worlds post-fact... the extra money and flexibility of contract work combined with the few bennies of FT work.. an option that the employer NEVER offered ANYONE because it's too freaking expensive to make that offer. In the end, a bunch of attorneys will pat themselves on the back and both sides will complain about how bad they got screwed.

    9. Re:They're right, this has no merit... by foooo · · Score: 2, Insightful

      Having worked at Microsoft as a contractor I never felt like I was a second class citizen.

      Also, because of a lawsuit similar to the one we're discussing right now contractors are only allowed to work for 360 days at MS. Then they have a MANDATORY 90 day break from work at MS. Of course you can always go get another job somewhere else.

      Basically in my view... I feel like the contractors who have sued in the past have screwed ME.

      They signed up for a contract, and they were treated like part of the team (a bonus) but didn't get other bennies like stock options and health club memberships. After being there for a while they felt like they weren't getting what they should have, most likely regret from not getting those stock options back when MS stock was splitting once every few years.

      So as a result of their greed, my contracts at MS are limited. This wasn't a law by the way, it was Microsoft attempting to mitigate or eliminate future lawsuits.

      So the next headline could be, HP contractors sue, screwing all future HP contractors.

      This may show up as contract length limitations. This may show up as substantial decreases in contracts that were in key roles... believe it or not some people do need an enterprise level architect for a few months at a time. This mgith also end up prohibiting contractors from coming along on company activities (release party, etc.) where as before they might have been invited or perhaps their team snuck them in.

      All bad things. Unless you want contractors to be inhuman workerbees. Granted, some people want that, but as an employer I wouldn't want that even from a contractor.

      ~foooo

    10. Re:They're right, this has no merit... by Saratoga+C++ · · Score: 2, Interesting

      The Microsoft permatemp lawsuit was won by the permatemps but lost by all future contractors in the entire state.

      There are now laws setup so that after one year of working at the same company you must refrain from working there through any agency for three months. This covers everything from IT through every other contracting field.

      The result is that instead of being a permatemp you are in fact a temp that has a 1 year life max and you are now interchangable with the contractor that comes to take your place.

  4. More reasons for Outsourcing by RoshanCat · · Score: 2, Insightful

    Thank you, you have given HP and other big companies more reasons to outsource.

    1. Re:More reasons for Outsourcing by cayenne8 · · Score: 3, Insightful
      " Thank you, you have given HP and other big companies more reasons to outsource."

      No shit...hell, after those contractors sued MS years back...its been bad enough trying to get companies to hire you as a 1099 contractor...

      This is going to do nothing but make it even harder....I find it is damned near impossible to get anyone to do a straight 1009 to an individual. You can get around it by incorporating yourself, and doing it corp to corp...

      Anyway, this sucks...if they wanted to be direct employees...do that. But, don't go in as a contractor, show your ass, sue...and f*ck it up for the rest of us that enjoy the $$'s, and freedom of contracting...

      asshats....

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    2. Re:More reasons for Outsourcing by EnderWiggnz · · Score: 2, Insightful

      this is outsourcing.

      they're abusing perma-temps by not giving them full benefits and protections.

      --
      ... hi bingo ...
    3. Re:More reasons for Outsourcing by plague3106 · · Score: 2, Informative

      Anyway, this sucks...if they wanted to be direct employees...do that.

      A company I left never offered that as an option..yet have had contractors doing the same thing as regular employees. The only difference was that they were always set home at 40 hours, because they didn't want to pay overtime.

      Contracting should be a temporary thing...but some companys hire contractors to avoid paying benefits, but also want to keep the contractor indefinatly. I don't find that to be the right thing to do.

      What ended up happening at the company I left was that they basically stopped hiring anyone (except management) full time so they could 'fire' the contractors if there was a short lule.

    4. Re:More reasons for Outsourcing by cayenne8 · · Score: 3, Insightful
      "Contracting should be a temporary thing...but some companys hire contractors to avoid paying benefits, but also want to keep the contractor indefinatly. I don't find that to be the right thing to do."

      But why???? Look, even full time employees have no such thing as job security anymore. So, why NOT contract? You make sure and bill out enough to cover your own insurance...

      You really get no benefits such as job security, respect, loyalty in a direct position anymore. It just isn't there. If you're not getting the benefits of that...they why would you not want to contract...make the bigger bucks...get tax breaks...and make enough to pay your own insurance.

      Frankly, I hate it that the IRS is trying to make it so hard to NOT be able to do this...

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    5. Re:More reasons for Outsourcing by Jim_Maryland · · Score: 4, Interesting
      they're abusing perma-temps by not giving them full benefits and protections.

      I've had two positions (two different employers) where I worked on-site with government agencies. I worked side by side with regular government employees and other sub-contractors in both cases. Does that entitle me to full government benefits? I'd love to have some of the health and training benefits offered by government agencies.

      In my opinion, contract employees should only receive the benefits offered to them by their employer, not the company or agency they may actually work at. If you don't like the benefits you have, then switch jobs. Companies/agencies hire contract workers for various reasons:

      handle extra work

      partnering with minority businesses

      internal hiring practices may be too strict - hire/fire easier with contractor

      cheaper labor rates due to competition between contractors - let's face it, some companies/agencies are "bloated" (i.e. unions, legacy business units from mergers, or whatever other reasons people's benefits/pay increase beyond similar rates by other companies)

    6. Re:More reasons for Outsourcing by HotNeedleOfInquiry · · Score: 2, Insightful

      What part of contract don't they understand?

      --
      "Eve of Destruction", it's not just for old hippies anymore...
    7. Re:More reasons for Outsourcing by bodrell · · Score: 4, Insightful
      In my opinion, contract employees should only receive the benefits offered to them by their employer, not the company or agency they may actually work at. If you don't like the benefits you have, then switch jobs.
      Well, that was my opinion until I read the following:

      The Internal Revenue Services uses a list of 20 criteria to help determine a worker's status, but Kaupins said those criteria come down to three main points: Does the employer have control over where you work, what time you work and what you work with?

      These employees had requirements that should not have been imposed on contractors. They had all the restrictions of salaried employees, but none of the associated benefits. And that's wrong, especially because HP pays less in taxes for each contract employee.

      --
      Si la vida me da palo, yo la voy a soportar Si la vida me da palo, yo la voy a espabilar
    8. Re:More reasons for Outsourcing by ebh · · Score: 5, Interesting

      No, nobody's being abused.

      I was a contractor for ten years, and I've been a full-time employee for the last 12. As a contractor, I understood that I got an hour's pay for an hour's work. Period. I arranged my own vacation, insurance, and everything else that employees get as benefits. It was my job to ensure that my billing rate was high enough that I earned a good living after paying all those expenses, and I did. I earned a VERY good living, usually a lot better than my employee counterparts.

      I quit contracting because I got tired of doing the lowest-level scut work that nobody else wanted, and now I earn a good living as an employee, but I have no illusions about loyalty or job security.

      If I was abused by anybody, it was by the contract houses, who skimmed (or tried to, at least) an excessive amount of my raw billing rate as pure profit for them. Needless to say, when I found a contract house that treated me like I might actually know how the business works, I stuck with them.

    9. Re:More reasons for Outsourcing by lcsjk · · Score: 2, Insightful
      Many companies work on a contract basis (like a government contract) and many work on a work order basis. If the contract requires that an additional 20 people are needed for a year or two, but no longer, the employer will hire contract workers so that the "permanent" employees do not get laid off at the end of the contract. At another company, if one of the normal customers places an order for an extra 10,000 gidgits, then more employers are needed for a few months or years. Again the company will hire contract people to help fulfill the order with the understanding (contract) that they are not permanent employees. They may be payed by a contract company, or may be hired directly as temporary workers. These people are not allowed to work overtime (even without pay) and most likely do the same job as the company's core group of permanent employees. However, they will be the first to go in the event of a downturn in the company's finances. Some, of course, will eventually be hired as permanent employees.

      There is nothing that can keep a company from hiring mostly temporary workers except for the state laws or rules governing workers. In HP's case, the employee should have known from the start whether they were temporary or permanent and under what conditions they would be terminated. (They probably did not know though!)

      I started my present position as a temporary worker. I knew from the start that my position would exist only as long as funds were available. I later was hired as a permanent employee, but my job responsibilities did not change at all.

    10. Re:More reasons for Outsourcing by Anonymous Coward · · Score: 3, Insightful

      Not legal?

      Contractors get paid more than FTEs. That's a fact, unless they the contractor is inept or stupid. When I contracted, I got paid more. The reason for this is that a) you're expected to bring a high level of expertise to the job, often MORE than employees and b) you're expected to make enough money to cover your own benefits.

      You still report to people, that's called "a job" -- you will ALWAYS report to someone. FTEs report to their manager, Contractors report to their customer -- which may be middle management or a company president.

      If you don't like it, then find work as an employee, and not a contractor.

    11. Re:More reasons for Outsourcing by Anonymous Coward · · Score: 3, Interesting

      Legal technicalities aside, I kind of side with HP on this. They entered into a good-faith agreement with the contractors, and both sides signed the contract. I think they should be told to obey the law from now on, but not be penalized for an honest mistake.

      There are a lot of these lawsuits going around. Someone works salaried for 10 years, without complaining, with both the employee and the employer content with the situation and of the assumption that it is appropriate under the law. Then there is an unrelated dispute, and some lawyer shows up to demand tens of thousands in back overtime since the employee shouldn't have been exempt. It's a misapplication of the law, and it hurts everyone. Unless there is a record that someone didn't think they should be exempt, they shouldn't be able to sue for back wages.

      Sure, the law defines what a contractor is, and companies should not be allowed to violate that. However, when someone willingly enters into a contract for specific compensation, they shouldn't be able to change the terms of the contract midway through and demand retroactive pay. It seems that our whole society is turning into vindictive, money-grubbing pricks who screw each other for a buck. Companies hate employees. Employees hate their companies. Customers hate the companies they buy from. Vendors hate their customers. All because some people have no integrity, and would rather make a little money they didn't earn than to be forthright, honest, and civil.

      Then again, I might just be bitter.

    12. Re:More reasons for Outsourcing by araemo · · Score: 2, Interesting

      So, why NOT contract? You make sure and bill out enough to cover your own insurance...
      I think you may be ignoring a large number of the 'contractors' out there who are not the type of employee you seem to think they are.

      I myself am a 'contract/temp' employee, and getting paid abysmally low compared to my peers(When you include benefits, company product discounts, and retirement funding; without counting all of that it's only a couple dollars/hour difference.)

      I am fullfilling a specific role, but I am not getting the kind of benefits I 'should' be getting.

      That said, I'm in an area with a completely horrid IT job market, and this is my first post-college job, so I'm glad to HAVE a job, and the people I work with are pretty cool, so I'll live with it to build my resume. :P

    13. Re:More reasons for Outsourcing by theshowmecanuck · · Score: 4, Insightful
      Personally, I think it started when companies started showing less and less loyalty to their employees so that they could squeeze every last drop of profit for the shareholders. Granted companies exist to make a profit, but you can hardly blame individuals from trying to squeeze every last drop of profit from companies, when the companies are doing the same to them. It's a two way street... why are people getting indignant over people trying to screw the company for more money for a change? Yeah yeah, I know, the company provides a living for them. But without the employee, the company cannot operate either. It's supposed to be symbiosis... that is until one side decides the other is a disposible commodity. At that point, it should not be a surprise when things get ugly.

      The reason we put up with what companies dictate (in terms of pay and benefits) is generally because we don't have the muscle to push companies while they can push us (this is the original reason unions came into existance). But let's face it, we need each other (companies need people to work for them, and people need to work for companies). But when one side seeks to change the relationship to maximize their profit, why are we all surprised when the other side tries to push back. Some of you think the position of the contractors in this case is unethical. But can you tell me that corporations are always ethical when money is involved? If you say yes, I call bullshit. Everyone, people and corporations alike are all as ethical as they have to be when money is involved (or not as ethical as they can get away with).

      Anyway, I say let them get as much as they can out of HP. Same goes for anyone else in that position. At least until some long term loyalty to employees is shown again.

      --
      -- I ignore anonymous replies to my comments and postings.
    14. Re:More reasons for Outsourcing by Anonymous Coward · · Score: 2, Insightful

      Personally, I think it started when companies started showing less and less loyalty to their employees so that they could squeeze every last drop of profit for the shareholders.

      I doubt it is that cut-and-dry. Which was the chicken and which was the egg could be a PhD thesis. The companies wouldn't be as bad if the shareholders weren't suing them, and if the market wasn't so flighty. They could be more generous if competition wasn't as brutal (to attract a consumer market that demands the lowest price at the cost of EVERYTHING else.)

      It's supposed to be symbiosis

      Yeah. It's the prisoner's dilemma again. If we worked together, we'd all be better off. Because we're all trying to screw each other for our own benefit, we all lose. Those with ethics often end up worst off. Ain't it fun?

      Some of you think the position of the contractors in this case is unethical. But can you tell me that corporations are always ethical when money is involved?

      Hell no. But Slashdot spends a lot of time pointing out every instance they can find of unethical corporations, so I think we've got that covered. Also, I don't see companies trying to retroactively classify employees as exempt and demanding their overtime pay back. They don't suddenly tell you you've been contract labor for the last two years, and you owe them for your benefits. They try real hard to write the contracts in their favor, but then they usually live up to their side of the contract. There are plenty of times that companies do evil things, but in this case it looks (from my very limitted viewpoint) like the employees are in the wrong, even if they are more correct legally.

  5. Free Potatoes! by AtariAmarok · · Score: 3, Funny
    "The suit seeks to represent 3,000 workers in Boise and elsewhere in the company and could involve as much as $300 million, according to the complaint." "

    The protest will die down as soon as the contractors are offered HP's "4 30-lbs sacks of potatoes" bonus offered to the regular Idaho employees as a holiday bonus.

    --
    Don't blame Durga. I voted for Centauri.
  6. That ain't how contracts work by mlmurray · · Score: 4, Insightful
    They claim that they were expected to perform at the same level of expectations as HP workers and thus should be given the rights and privileges of HP workers.
    No. They should be given the rights and privileges that were spelled out in the contract.
    1. Re:That ain't how contracts work by SpecBear · · Score: 3, Informative

      You can draw up whatever kind of contract you want, but there will always be two issues to deal with:

      1) No matter how the company defines "contractor," the IRS has it's own guidelines determining who is or isn't a contractor.

      2) If your employer ever makes demands beyond what's outlined in the contract, then there's a rather severe power imbalance when it comes to negotiations.

      A friend of mine ran into this problem. She was a contractor, and as her contract was approaching time for renewal, her employer began to demand that she be in the office during certain hours rather than working from home. Since her work didn't require her to be in the office, this was clearly illegal but the message was was quite clear: do this, or your contract doesn't get renewed. With contractors, a company can keep doing this until it finds someone willing to play ball.

      I think lawsuits like this are a good thing because they provide some credible deterrent for this kind of behavior. Without the threat of such lawsuits, there's no serious disincentive against abusing the rules surrounding independent contractors, and the rules become effectively worthless.

  7. Contract workers by mingot · · Score: 5, Interesting

    I'm pulling for these guys. Companies tend to have the nasty habit of using what they call contractors to get out of paying taxes and benifits that they really should be. If you go to the IRS website and look up the rules which are used to determine whether someone is an employee or contractor it's clear that rules are being broken.

  8. Read the contract? by chiapetofborg · · Score: 4, Interesting

    I've had my share of contract and full-time work, and I guess I'm kinda weird, because I actually read my contract. If it doesn't say I get benefits, I don't expect benefits, If it says I will, I expect benefits. Am I going to be getting a 1099 or a W2 at the end of the year? Because one is typical of a contract employee and the other is a regular employee. Regular employees typically get benefits, and the company pays the taxes. Contract employees pay their own taxes and benefits.

  9. This is dumb by Holi · · Score: 4, Insightful

    I am sorry but I have done contract work for over 10 years and this pisses me off. They may work at HP but they work for either their contract agency or for themselves. I didn't sue Pixar when I worked there because they decided not to put contractors in the credits. I don't expect the company I am working at to provide me with health benefits and stock options, I should get those through the agency who pays me.

    --
    Sorry, teleporters just kill you and then make a copy. A perfect, soul-less copy.
  10. contracting at Apple by Eric+Smith · · Score: 5, Interesting
    When I started a contract job at Apple Computer in the late 1980s, they made me sign a statement that I was not an Apple employee, was not elgible for the benefits Apple provided to employees, and that if any time I believed that I was an Apple employee, I was to deliver written notification to Apple's legal department. The purpose of this statement was presumably to avoid the exact situation HP appears to be in.

    Later Apple did hire me as an employee. At that point since I believed that I was an employee, pursuant to the previously signed statement I wrote a notice and tried to deliver it to Apple's legal department. They seemed completely flummoxed as to why I was notifying them that I was an employee.

    1. Re:contracting at Apple by Eric+Smith · · Score: 5, Interesting
      The statement that I signed which said that I would notify Apple Legal if at any time I believed I was an Apple Employee did not say anything whatsoever about my status as a contractor, or the termination of that status, or that the terms of the statement would terminate on any particular date or as a result of any change of status.

      What "most reasonable people would have seen" has very little bearing on the legal interpretation of documents one has signed.

      If I had failed to satisfy my obligation, Apple would potentially have had grounds to sue me. I don't believe that they would have done so, but I also believe that honoring my obligation was the correct thing to do.

  11. About freaking time! by numbski · · Score: 5, Informative

    My wife and I each spent a stint with Compaq (became HP while she still worked there) and they play this game all the time. They work everyone the same, but 'badge' employees actually get vacation, 401k, etc.

    It wasn't right then, and if it's still going on, good for them for suing. I knew people that had worked there for YEARS and never got 'badged'. No vacation time (although you could occassionally get time off without pay) and rarely, if ever would you get any kind of incentive or pay increase. You'd also usually get let go without warning, and the contractors would play a game of saying that you're still employed with the contracting agency, thus not entitled to unemployment benefits (which, at least under Colorado law is not true. I managed to get benefits).

    Anyway, it's about time.

    --

    Karma: Chameleon (mostly due to the fact that you come and go).

    1. Re:About freaking time! by R.Caley · · Score: 2, Insightful
      They work everyone the same, but 'badge' employees actually get vacation, 401k, etc.

      This is why contractors generally get payed significantly more than employees, because they have to buy things the employees get `for free' (including some level of job security).

      If Compaq/HP contractors weren't getting payed sufficiantly more than employees to cover this kind of thing then they should have walked away from the job en-mass. At that point either HP finds they didn't need the contractors anyway, they increase the money or they start hireing lots more employees.

      --
      _O_
      .|<
      The named which can be named is not the true named
    2. Re:About freaking time! by numbski · · Score: 4, Interesting

      I don't know about Boise, but in Colorado Springs, it was BAD. Employement opportunities got to be really scarce, no one was going to walk away from their jobs.

      HP simply abused the situation. Looks like in Boise they are continuing to abuse a similar situation. This is more the contracting agencies and HP collaborating to screw people over en masse for profit, using dubious contracting methods. I've worked in the situation, and it is certainly NOT as cut and dried as this article makes it out to be.

      --

      Karma: Chameleon (mostly due to the fact that you come and go).

    3. Re:About freaking time! by bluprint · · Score: 2, Insightful

      When employment opportunities get scarce, that generally means there are too many employees, right? So, you would expect pay to generally be forced downward.

      The thing is, in regard to that pay, does it matter how it's paid? I can either pay you 50k a year plus benefits, for arguments sake lets say those benefits total 10k; or I can pay you 60k a year straight, which generally is why contract employees get paid more. In either case, in a "BAD" market, total compensation will generally decrese.

      As for HP abusing the situation, I suppose you are referring to them generally decreasing pay because of the "BAD" employment market. I wonder though, when there is a "GOOD" employment market (which is really "BAD" for employers, while your "BAD" employment market is "GOOD" for employers) do you consider yourself to have "abused the situation" by taking higher wages? Not a personal attack, but most people only look at this thing one way. When the market is in favor of employers, they are "abusing the situation", when the market is in favor of employees, suddenly everyone becomes a libertarian/capitalist.

      --
      A modern day witchhunt.
    4. Re:About freaking time! by qwijibo · · Score: 4, Insightful

      There are up sides to being a contractor that are often ignored in these situations as well. If contracting isn't right for you, don't do it.

      I turned down a pretty respectable full time job where I'm working because I'm making substantially more as a contractor. I've been a contractor for over 2 years at the same place. I don't get any benefits through my employer. However, when I was expected to work 60-80 hours a week for well over a year, I got paid for all of those hours. Many companies hire full time employees to make them work 50-80 hours a week after negotiating a 40 hour/week salary. Now I work 40 hours a week and can take days off to even out the long days just to ensure the budget isn't blown like last year.

      Contractor vs full time is a choice you have to make for yourself. They both have their good and bad sides, you just have to know what's important to you and play the system.

    5. Re:About freaking time! by darkmayo · · Score: 2, Insightful

      I dont know "in my situation" who decided how much the contractors where to be paid but we made seriously less than the full time HP employees, and we where full time employees and these contracts were not 3 or 6 month deals.. we where told up front that you where going to be kicking around for years. (mind you this when when it was still compaq and getting badged still happened back then)

      If we got higher wage then I wouldnt complain. my guess is the Boise people started out as lower paid compaq contractors who where use to seeing people get badged, but got screwed.(like the rest of us contractors) when the merger happened.

      --
      "I am a kernel in the linux army"
  12. They can't just call them "contractors" by winkydink · · Score: 5, Informative
    to avoid paying benefits, etc...


    The IRS rules on this are quite specific and, IIRC, Microsoft lost a huge case on this in the early 90's for hiring contractors that were, in essence, 2nd class employees.


    From the article:


    Huntley's lawsuit cites all 20 criteria and claims that in every case HP treats contract workers as employees.

    Among them:

    Does the worker have assistants whom the company supervises and pays?

    Does the company furnish tools, materials and other equipment sufficient to show control?

    Is the worker required to devote substantially full time to the company?

    Kaupins advises companies to check with the IRS if they have any questions about contract workers vs. employees, because companies can be held liable for back taxes if worker status changes from contractor to employee.

    --

    "I'd rather be a lightning rod than a seismometer." -Ken Kesey

    1. Re:They can't just call them "contractors" by res+ipsa+loquitur · · Score: 4, Informative

      You, sir, are correct.

      Most of the posts so far are missing the entire point of this suit. This isn't about whether these contract workers can get the benefits that the employees do. That may be the _reason_ that the people are suing HP, but it is not the issue. The real issue here is whether HP is trying to reclassify employees as contract workers.

      To (over)simplify, if a contract worker is treated like an employee then that contract worker can get the legal protection that an employee gets. That's why those IRS criteria are so important here; they aren't just persuasive arguments, they are central to the case.

      This is not a contract issue any more than hiring child laborers is a contract issue. In either case it really wouldn't matter whether the contract was agreed to or not because the contract would not be enforceable as a matter of law. I'm sure that the people who are suing only care about the benefits that they are missing, but the issue in this case is entirely independent of those benefits.

      Standard disclaimer: I'm not your lawyer and this is not meant to be taken as legal advice.

  13. Is it any surprise? by AtariAmarok · · Score: 5, Insightful
    "Companies tend to have the nasty habit of using what they call contractors to get out of paying taxes and benifits that they really should be"

    Is this any surprise? If the government makes you pay a higher tax for full-time employees, then this discourages hiring full-time employees. The same with imposition of benefits for such employees: it is the government providing a disincentive for hiring the kind of employees that would get these benefits.

    Is it any surprise that the companies are responding to economic pressure from the government NOT to hire regular full-time workers?

    --
    Don't blame Durga. I voted for Centauri.
    1. Re:Is it any surprise? by cayenne8 · · Score: 2, Insightful
      "No suprise at all. And of course, these are the number cited when the "unemployment" figures come out and it shows "unemployment" is down. Yeah, more people may be employed, but only because for each two people you fire, you can hire three contractors since you don't need to kick in for medical, pension, and benefits."

      So, what's the problem? You negotiate your bill rate to allow you to pay your own insurance. Go to www.realrates.com. For example...Oracle DBA's and programmers...MAKING %55-$125.hr. If you can't pay your own insurance out of that kind of money...you've got serious budgeting problems...

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
  14. Will this hurt Gulfstream? by DAldredge · · Score: 3, Funny

    If HP loses this suit will it delay future HP purchases of Gulf Stream 5's?

    1. Re:Will this hurt Gulfstream? by plopez · · Score: 2, Insightful

      Nah, HP will just lay off a few thousand more and then buy another jet, like they did the first time around:

      http://www.theinquirer.net/?article=11542

      --
      putting the 'B' in LGBTQ+
  15. The funny thing is... by Kenja · · Score: 4, Interesting

    Whats funny to me is that when Microsoft got sued for much the same reasons the response here was very much against the Redmond Giant. Now thats its another company the attitudes seem to have shifted against the contract workers. This is also a reason I will never again do temp work. I'd rather fish uneaten burgers out of the Burger King dumpster.

    --

    "Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
  16. This makes it harder for the by MisanthropicProgram · · Score: 3, Informative
    self employed contract workers.
    Back when I did contract work, I always had to go through a large agency because:

    I wasn't on the preferred vendor list

    I needed to have more than five employees working at my company

    I needed to be incorporated - not much of a problem. My accountant did it for me for $75.
    When I asked why the hoops, I was told about IRS rules. When I pinned them on it they confessed that it was because they were afraid of what happened in the article happening to them. As a result, I earned 40% less because of people like the above.
    Hello, when you work for a contract company, you are treated differently: usually paid more then the regular employees.

    Sorry about the rant.

    1. Re:This makes it harder for the by numbski · · Score: 3, Insightful

      From experience with HP (Compaq at the time, probably what this facility once was), contractors are paid less, worked more, and given no benefits at all.

      They get worked long term in order to avoid giving said benefits, and a small, SMALL minority will ever get changed to full time.

      If you were in the situation, you'd know how bad it is. This isn't a cut and dried "you're contractor, so you abide by the contract", it's more, "the majority of our workforce is temp so we can treat them like crap and get away with it".

      Of course the contracting companies play along and take their cut too. The whole thing, legal or not, deserves that someone get strung up.

      --

      Karma: Chameleon (mostly due to the fact that you come and go).

  17. As a contract worker, this worries me. by Vengeance · · Score: 2, Informative

    Frankly, this may well make life more difficult for those of us who act as contract consultants. They pulled this stuff on Microsoft a few years back, and as a consequence contractors don't GET to stay there for extended periods, they are essentially kicked out and forced to find other employment after a rather short amount of time (a year or eighteen months or something?). I worry about what this means to the rest of the industry.

    --
    It was a joke! When you give me that look it was a joke.
  18. We recently ditched our contractors by Shivetya · · Score: 2, Insightful

    and I know of a few friends who lost their jobs contracting. All of it was because of lawsuits like this. We did give most of them the chance to become full time employees but a few decided to strike out on their own.

    Now the only contracts we do are short term, IF AT ALL. We now hire consulting companies who bring a solution with them. This can be the same as having 2 or 3 contracters but it avoids the legal issue of whom do these people actually work for.

    Too many courts are more than willing to jump on the side of the plantiffs. Combine that with lottery minded juries and the system is ripe for squeezing.

    A contract is a contract. I cannot ever recall being forced to actually work for a company I did not choose to. The suits are usually the recourse of people who did nothing to protect their marketability.

    --
    * Winners compare their achievements to their goals, losers compare theirs to that of others.
  19. Re:No Merit by 0x461FAB0BD7D2 · · Score: 2, Insightful

    How is this in any way political? It's a bunch of temps who think they've been treated badly. That's it.

    Everything is not political, believe it or not.

  20. Speaking as a contractor by Anonymous Coward · · Score: 2, Interesting

    I'll certainly be watching this one!

    I'm in the UK and I've been a contractor at a big IT company for over 3 years now. Still no sign of getting my contract converted to a permanent one to the company I work in. Not as many days holidays as badged employees. No pension plan. Lately I have been told that I have reached the top wage I can get in my current position and the temp agency policy is no bonuses. ("But you're doing a great job! Fantastic!").
    When I signed the contract it seemed that you stayed as a temp for 1 to 2 years before getting a contract with the actual company.
    So yeah I totally understand the frustration of those guys.
    And the whole contractor thing is only getting more and more common.

  21. I'm suing too! by TheNecromancer · · Score: 3, Funny

    Hey, this lawsuit is just like the one I'm bringing against /.! I was a "common-law" moderator, and they took my mod rights away! I was expected to perform on the same level as the moderators, but without receiving the same benefits!

    Ooh, you guys are gonna pay me $$$ restitution! :p

    --
    Attention all planets of the Solar Federation! We have assumed control! - Neil Peart
  22. I wish people would stop doing this. by Harodotus · · Score: 2, Insightful

    As a consultant / contractor of 12 years, lawsuits like this make my life much more difficult.

    I can't even begin to describe how many times I have to sign in contracts that I realize I am not an employee of my customer.

    I Am being paid a significant premium for the instability of contracting, almost 50%. To think that I could go back over the years and figure out cases where I might have made more money being an in-house employee and then suing just those, is simply ridiculous.

    To try to convince my customers I will never EVER have basis to sue them, I do the following:

    1) I sign contracts explicitly stating (several times) that I realize I am not and never will become an employee regardless of how long I work there, what I do, for the manner in which I do it.

    2) I sign away any right to collect any significant damages if I where to sue anyways.

    3) I sub-contract through a recruiting agency, where I sign another set of contracts saying the same thing but to indemnify the recruiting company.

    4) I have my Own 1 man C-Corporation who signs the contracting agreement. I myself am not even doing work (technically) for the customer.

    5) My Corporation, uses ADP Payroll services to pay it's employees (my) who are all Salaried and their pay not dependant on what company I might do the work for. I myself am a salaried W2 employee of my own C-corp.

    Even with all these precautions, I STILL have trouble allaying the fears of potential customers that I can possibly be mistakes to be an employee of my customer.

    Lawsuits like this make my life hell and cost me the money of potential customers who are afraid of them.

    --
    Its not users who are broken, it's systems not taking account their likely behaviour and fixing it technically.
  23. Not Contract Workers by Uhlek · · Score: 3, Interesting

    While colloquially classified as "contractors," these individuals were not contract employees. They were full-time employees (W-2) of the contracting company, who in turn had a contract with the customer to provide a staffing service. The contract was with their employer -- not the employee directly.

    The contractor vs. employee argument only comes into play when you're talking about true-blue contractors who work for a flat rate under a 1099, not W2 employees.

    This was the situation in the famous Microsoft contractor vs. employee case. Contrary to common belief, the contractors were not the instigators in that case. It was the IRS who audited Microsoft and determined that they had incorrectly classified people as independant contractors as opposed to employees, and was therefore liable for back employment taxes (which, by the way, are paid if you're a W2 employee of a contracting company). The contractors then picked it up from there and demanded that, since the IRS classified them as employees, they were due the benefits give to full-time employees.

    In my humble, and non-lawyerish opinion, this case is entirely without merit. They were employees of the contracting company, and were given a benefit package that they agreed upon by becoming employees.

  24. Not quite by temojen · · Score: 5, Informative

    Around here (BC, Canada) an employee is one who

    1. works on an employers site,
    2. uses the employer's tools,
    3. works hours set by the employer, and
    4. is supervised by other employees of the employer,
    5. or any combination of 2 or 3 of the above.

    For labour relations and tax reasons some employers try to put employees on the books as consultants or contractors, but their financial auditors (it's not GAAP), revenue canada auditors (it may be tax evasion), and the labour relations board smack them down pretty fast.

    (std disclaimer: IANAL, IANAA, if you need a lawyer or accountant, get a real one)

  25. Where the slime is by fm6 · · Score: 4, Insightful
    A lot of lawsuits actually do start that way. But any contractor will tell you these people have a legitimate beef.

    There are legitimate reasons to use contractors. Like when you temporarily need a few extra people at crunch time. Or there's a specialized task that it makes sense to outsource.

    But a lot of contractors are doing jobs that are really part of the permanent organizational structure, often working side by side with permanent employees who do the same work. Technically, they're temporary people who work for themselves or for a "job shop". But their contracts are often extended for years, and the person who supervises them and decides they ongoing future works for the company, not the job shop.

    I've never quite understood why companies "hire" so many non-employees. My best guess is that inept managers can't figure out how to justify the head count they need to get the job done, but somehow manage to get "temporary" funding for contractors.

    Being that kind of long-term contractor can be maddening. There may be campus facilities, like a gym, that you're not allowed to use. There will certainly be bennies -- matched 401Ks, stock options, tuition reimbursements -- that you won't be eligible for. And then there are the intangibles...

    I once worked for a year as a contractor helping clean up a doc set. (The guy who replaced me in this "temporary" job is still there -- 6 years later!) My work helped earn my writing team an award for "improved documentation." Some of the improvements cited were done at my initiative. But because I was a contractor, I wasn't even invited to the ceremony.

    A lawyer who helps defend people against this kind of abuse is not "slimy". He's simply helping people defend their rights.

    1. Re:Where the slime is by symbolic · · Score: 3, Insightful

      I've never quite understood why companies "hire" so many non-employees.

      It's right there in the article - if they're non-employees, the company saves a bundle by not having to pay them benefits, pensions, vacation time, etc. But here's the irony - many contractors were willing to put up with this, because as contractors, they had more freedom. The problem is that these companies hire "contractors," and treat them like regular employees. Now they lose the both the freedom, AND the benefits/perks- the company effectively gets a lot more work for a lot less money.

  26. No by geekoid · · Score: 2, Informative

    The guidline for what constitutes a 'contract' employee is determined by state laws. Useally very specifically.
    The idea of 'contract' employee is you work to create a very spific thing, by a specific date.
    You can:
    1) Work where you want
    2) When you want
    3) wearing what you want.
    4) the ability to hire your own employees to do the job

    If you get responsibilities beyond that, your an employee
    If you are told to work specific time, your an employee
    If you have to adhear to a dress code, your an employee.

    As always see A lawyer who specializes in this area whenever you are getting a new contract.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    1. Re:No by Pionar · · Score: 3, Informative

      That's retardulous. That's not the case at all. You are a contract worker (aka independent contractor) when you sign a contract saying so. It has nothing to do with responsibilities or deadlines.

      And the determination of what is an employee is set by the federal government, including IRS guidelines, labor guidelines, tax code, and congressional laws. State laws may provide certain benefit to non-employees, but that doesn't make them an employee.

      When you sign a contract, you are agreeing that you will do X amount of work (hours, units, a project) for Y amount of money (whether flat or per hour). Often, other responsibilities such as work hours are specified in the contract, or there's a clause stating that the employer will decide those terms.

      As a contract worker, you are not entitled to any benefits whatsoever. Under some cicumstances, the "employer" doesn't pay payroll taxes, and you are responsible for all taxes, because you are effectively self-employed. My father got swindled into this as a dealer rep for an auto auction in the 80s. The owner of that auction eventually went to prison for tax evasion and ghost employment (big surprise).

      And yes, if you plan on working as a contract worker, get an attorney to look over the contract. It'll cost you some (it cost my former roommate $150), but is well worth it. Not just any attorney, though, an employment attorney.

      IT people need to read about how law affects them. I've always found that Nolo has great books for us non-lawyers. Those in IT would be most interested in this book, which provides guidance on these issues for both employers and employees.

  27. Not individual contractors by RevMike · · Score: 2, Interesting

    If the news story is accurate, these workers are not the same as if you or I worked as an independent contractor. According to the story, these workers were employees of staffing companies. The staffing companies were the contractors. They are no more entitled to be HP employees than the guy who drives around the lawnmower for a landscaping company deserves to be the direct employee of the landscaper's customer.

    There are laws intended to protect individual workers from being treated like contractors instead of employees. A company can't simply hire people on a 1099 basis instead of a W-2 and duck all sorts of taxes and liabilities. The law provides for a set of tests to distinguish a true independent contractor from these situations. But the plaintiffs in this suit appear to be getting a W-2 from their employers, the staffing companies.

  28. It's a well know fact in some circles.... by Anonymous Coward · · Score: 3, Interesting

    HP & Agilent terminated most of their IT departments and rehired them through an agency.
    So HP deserves everything they get from this lawsuit. The previous posts about these guys
    being asses and wrecking it for all other contractors, well, they don't know the real story. HP is as guilty as
    Microsoft in this case.

  29. Recognition by MyLongNickName · · Score: 3, Funny

    Twenty years ago, I would have wanted recognition for working for HP. Now, I think the FULL TIME employees should sue HP for the right to say hey really work for McDonald's.

    --
    See my journal for slashdot ID's by year. Mine created in 2005. http://slashdot.org/journal/289875/slashdot-ids-by-year
  30. This just in... by Anita+Coney · · Score: 3, Insightful

    HP announced layoffs today in its Boise Idaho facility, affecting approximately 3000 contract workers. Spokeswoman Debra Cartwright was quoted as saying, "Why should we hire American's and their god-damned lawsuits?! We'll outsource this crap and save a ton of money on the tax breaks W gives us!"

    --
    If someone says he and his monkey have nothing to hide, they almost certainly do.
    1. Re:This just in... by gakn8r · · Score: 2, Informative
      er...
      You are a little late. The 'layoffs' were announced about a week ago. They are being referred to as voluntary severance (an employee may choose to leave with severance pay) to be followed by layoffs if not enough people choose the voluntary severance. The contractors that become collateral damage in this are just let go. No severance pkg.

      [disclosure: I live in Boise and have friends who are employees and 'contractors' for hp]

      hp (in Boise) uses a couple of contract places to hire people through, mostly to test printers and printer firmware. The postings on Monster and other places make it look like you will be an employee of hp. But no, you will be hired through a temp agency and given crapy benefits. Then you go to work every day at the hp site and do whatever they tell you to do. They do not hire you for a specific set job, ie - a contract. You are a non-employee being treated like an employee w/o benefits.

      I not surprised this is happening. Even though we all know the only one that will see any money from this is the lawyer.

  31. Who's suing whom? by 3gm · · Score: 4, Insightful

    First, let me say that I have been an HP supporter for many years, but my support has waned through the Carly years.

    I subscribe to the point of view that HP likely has violated the law and is simply using these contractors as a way to avoid having regular employees on the rolls. It may or may not be less expensive to have contractors rather than employees doing the work. It most certainly is more flexible since contractors can be let go for no reason at all and with little recourse or potential fallout. It does keep headcount low which is a favorite with financial types.

    I suspect many of these contractors took the contract many months or years ago with little expectation that it would continue this long. They've likley received no pay raises in that time and are feeling a bit mistreated. I'm an independent contractor and I understand their feelings. Where else in Boise does an IT contractor find work?

    My main concern here is why isn't the DOJ or DOL prosecuting this suit? Seems to me questions of employee vs. contractor are settled via federal law and the feds ought to be pursuing alleged abuses, not the individual contractors.

  32. Somethings to ponder by Tropaios · · Score: 3, Interesting

    I read a lot of comments from the field about how it's all about their contract and what's in it. And that's not really the issue here. Simply stating in a contract that a person is not an employee but a contractor doesn't make it so, even if both parties agree. What does matter however is the set of expectations the contracting party puts on the contracted one. Myself I'm a swimming coach and the club I worked for treated me very much like an employee while paying me like a contractor, I chose not to pursue legal action because it's a very small community we coaches travel in, and suing a non-profit childrens organization doesn't sit well with anyone. Instead I just jumped ship and got a better job elsewhere. Anyway, my research led me here: Employee vs. Independant Contractor Enjoy

  33. Here's the Microsoft lawsuit by redbeard_ak · · Score: 2, Informative

    http://www.washtech.org/news/courts/display.php?ID _Content=58

    MS I believe lost all it's appeals but has still been delaying payment... need to check up on that. I know some of the plaintiffs. Last I heard they still hadn't received their checks.

    Judge: Contractors Were Common-Law Employees of Microsoft
    A U.S. District Court judge ruled Wednesday that workers employed as independent contractors, and then subsequently forced to work through temporary agencies, were in fact common law employees of Microsoft while working at the company between 1987 and 1990. The ruling in the class action Vizcaino v. Microsoft lawsuit also clarified which workers would likely be part of the class, but left open the possibility that potential class members not covered under this case could be a part of future litigation.

    continued in the link

    --
    . This sig unintentionally left blank. I meant to put something here, but I'm busy.
  34. Crybabies my ass by A+nonymous+Coward · · Score: 5, Insightful

    On the one hand, the Big Business In Bed With Government mentality that runs this country wants to avoid any type of national health care. They insist that is a job for the private sector. They shut down Medicaid, medicare, any chance at national health plans. "See," they say, "your employer should provide that. It is not a proper job for government."

    So I tell you what ... have you ever shopped for an individual health plan? Good god almighty that is expensive! You know how much less it costs when a company buys it for their employees? I swear it stinks. It's as if individuals are subsidizing businesses. It really stinks.

    So people try to organize labor unions, like at Wal-Mart, or they try to get full time jobs, like at H-P, in order to get that health care. And guess what? Wal-Mart closes stores rather than deal with unions. H-P hires contractors to do the same work so they can avoid having to pay for health care.

    You know, life sucks, but it doesn't have to suck that bad. That's why I applaud lawsuits like this, and consider those lawyers top grade on the morals scale, or at least they have better morals than the politicians and their corporate rulers who don't miss a chance to stick it to people who work for a living.

  35. Time to remove Exempt Status for Tech Workers by infonography · · Score: 3, Insightful

    With shrinking wages and long long hours isn't it time to start getting overtime? If you not a manager managing people your a worker. Has long as your bosses can work you like a dog for 60 hours weeks then they won't hire anyone else to take the load. The threat of Overtime for tech workers will help put more of your colleagues to work.

    --
    Sorry about the writing. Robot fingers, you know? Cliff Steele in DOOM PATROL #23
    1. Re:Time to remove Exempt Status for Tech Workers by MikeBabcock · · Score: 2, Interesting

      Here in Ontario, Canada, computer techs aren't guaranteed overtime pay -- they're an exception to the rule.

      Yay for me.

      --
      - Michael T. Babcock (Yes, I blog)
  36. I actually worked in a similar capacity with HP by MitchlBuckeye · · Score: 2, Insightful

    In 96-97, I worked in a similar capacity as these plaintiffs did, for Manpower Technical, on a week to week contract with HP. All along, the dividing line between employees and contractors was that if HP did not hire you permanently, you would be removed from the contract within two years. While true HP employees did get benefits and vacations, I never saw a HP employee to be happily working that 50th or 60th hour in a week, on the other hand, I was earning big $$ in OT. When it came time to accept or reject an offer from HP for permanent emploment, I believe that even with a generous valuation of the HP benefits, I was still going to take over a 20% cut in compensation. I passed, now have a permanent salaried job elsewhere, and was happy with my HP time, and happy with my decision to pass on permanent employment too.

  37. Doesn't make much sense to me by Phixxr · · Score: 2, Interesting

    I worked for a contracting company @ HP in Boise. Issue here is that the people who are suing(Adecco, VeriTest, Manpower) are not contractors. They are employees of their respective companies. The companies(Adecco, VeriTest, Manpower) pay the paychecks, the employees just happen to work at an HP building. The story would be different if these people were independent contractors, contracted directly to HP, but they're not. Not to mention, the people quoted in the article no longer work for any of those companies... I'm wondering why they left employment in the first place. -Phixxr

    --
    ungggghhhh
  38. Re:an endless supply of people to be exploited by R.Caley · · Score: 2, Insightful
    Or the company just hires more people who are willing to work in the same situation that all the quitting contractors worked under; there's an endless supply of people willing to be exploited.

    If there are, then HP is overpaying it's employees, and it should be HP shareholders taking HP to court.

    --
    _O_
    .|<
    The named which can be named is not the true named
  39. Been there, on both sides. by bbroerman · · Score: 2, Insightful

    Hey, they signed the contract, and agreed to the assignment... I've been there twice before, on both sides, and if you agree to the contract, you agree to it. Plain and simple.

    Now, as for the benefits... you usually get healthcare, 401k, etc. from the consulting company you work for, not the company you are assigned to. You agreed to that when you signed the contract... And most consultants get paid overtime, while FT employees don't. (at least they did 3 years ago when I was a contractor).

    Short of it is... You agreed to the contract. If you don't like it, you can quit and get a different job. End of story.

    --
    Logic is the beginning of reason, not the end of it.
  40. RE: getting around the IRS rules.... by King_TJ · · Score: 2, Interesting

    Actually, I think more companies bend those IRS definitions of "contractors" than you might realize.

    A big offender? Most courier/delivery services. They often use only "contractors" to run all their deliveries - even though at first glance, this might seem impossible. (If the people are driving cars you own, and taking deliveries "on call" for you, then that would seem to immediately make them your "employees" rather than "contractors".)

    To comply with the IRS rules of "contractors" though, they do such things as rent the cars out to the drivers (with compensation built into their pay to cover the rental costs), and instead of telling a specific driver to do a given delivery run, they simply get on the radio and "offer" the jobs to the drivers.

  41. Contractors aren't the problem here by Who+drank+my+chocola · · Score: 2, Insightful
    They pulled this stuff on Microsoft a few years back, and as a consequence contractors don't GET to stay there for extended periods, they are essentially kicked out and forced to find other employment after a rather short amount of time (a year or eighteen months or something?). I worry about what this means to the rest of the industry.

    Lets go back a step... While it is true that lawsuits like these make the contracting business less-fair to contractors, I think there is a deeper injustice here in the first place.

    Why doesn't it enter into the discussion that the company wants (and needs) your expertise permanently on a full-time basis, but doesn't want to pay the freight on the perks they give to permanent employees? Why is this inherent cheapness allowed to slide by as "acceptable?" The company is getting all of the benefits of a FTE without cost of benefits and accounting for taxes witheld. In olden times, we called this "Having your cake and eating it too."

    Perhaps we should be cracking down on employers who are using FTContractors in place of FTEmployees to dodge their responsibilities under the tax code instead of blaming people who are simply seeking legal protection under existing law. If the law itself is the problem, lets have a discussion about the merits of changing it.
    --
    Tough day? How about a free Mac mini?
  42. Now I understand my companies policy by Bruha · · Score: 3, Insightful

    Our company will let go any contractor that is not hired within 6 months and that is a rule of HR though sometimes people slip through the cracks I've seen it enforced.

    To those that disagree many contract companies will pay you no benefits and they are not required to disclose any of the details of what they get for your work before you are paid. For all you know is that the company could be charging 45 a hour for your work but paying you 20 a hour claiming the extra 25 a hours is for health, vacation and all that but not providing it to you.

    And where I have worked contractors are treated like second class employees, they're not invited to employee functions and other team building events which I disagree with as it hurts the group as a whole making your contractors feel like insiders. Companies that promote these actions should be compelled to invite their contractors to functions. You may end up with more satisfied workers as a whole.

  43. Corporations are EEEEE-VIIIIIlL! by jgardn · · Score: 2, Informative

    That's right! Stick it to 'em!

    This company has been one of the worst offenders, treating its employees and contractors like slaves on a Roman galley, while they sit in their togas enjoying grapes fed to them by beautiful blonde women. I mean the CEOs are making millions and millions while their employees are only able to buy a nice car and a nice house and send their kids to a nice college. It isn't fair!

    I hate corporations. I mean, all the do is sit around and hire people and pay them good money to perform services and make goods, which they turn around and sell for decent prices! I mean, who do they think they are? If I want good products and the latest toys at a good price, why do I have to go to evil corporations to get them? And why do they make obscene profits on my willingness to buy and their employees willingness to work! Is there any justice in the world? Somewhere, somehow, Bushitler and Cheney are involved in this. I smell Rove behind the curtains.

    We should just ban corporations and everything like them. If you want something, you shouldn't be able to go buy it from someone else, unless that person is going to be selling it at a loss. Make it yourself, dangit! And you shouldn't be able to work with other people, even if you pay them. That's not right! What are we, slaves, to be paid for our valuable labor? And you shouldn't be able to sign a contract saying you will provide services to a corporation in exchange for money. If you want money so bad, why don't you just make your own?

    In the meantime, let's file frivolous lawsuits against the best corporations around and make them spend their hard-earned cash defending themselves from lunatics like myself. It's only fair!

    DOWN WITH CAPITALISM! CORPORATIONS ARE EVIL! SO IS BUSHITLER!

    --
    The radical sect of Islam would either see you dead or "reverted" to Islam.
  44. I used to "contrant" with IBM by Anonymous Coward · · Score: 2, Insightful

    I contracted with IBM for 3 years then got laid off. I was exactly as you describe above.

    The reason IBM used us was becasue you can get rid of contractors without offically getting rid of employees.

    Looks a lot better when you say IBM has stopped contracting outside expertise for chip X production then saying Today, IBM announced it will fire 500 people.

    It is all PR crap.

  45. The level of ignorance here is astounding. by BenEnglishAtHome · · Score: 4, Insightful

    How many posters have said "They signed a contract! They're contractors! Screw 'em!"? Those posters are idiots. With the notable exception of just a couple of posters, the ignorance here amazes me.

    For those of you who want some idea what's real and what's hot air being blown by a bunch of no-nothing nerds who think their world-view should inform every business relationship in the country, listen up. IT DOES NOT MATTER IF YOU'VE SIGNED A CONTRACT. IT DOES NOT MATTER (much) WHAT THE CONTRACT SAYS.

    You can sign a contract to work for a big corp wherein you swear a thousand times that you're not an employee and you'll never seek employee benefits and you're not entitled to them and you'll never sue. You and your new bosses can sing from the mountaintops for a month that you are not an employee. And none of that matters.

    Employees are defined by law, not by some silly piece of paper drawn up by the legal department at MegaCorp. If you meet certain criteria, you are an employee. It doesn't matter if you and your bosses agree differently. It doesn't matter what the contract says. If you meet the criteria, you ARE an employee. Period. And if you ARE an employee and your employer is treating you different from other employees (by, for example, referring to you as a contractor and not giving you benefits), then you've got a reason to sue.

    Those criteria are found on this form. Read it and learn something and quit spouting off about stuff when (most of) you obviously have no idea what you're talking about.

    PS - What really amazes me is how many of you guys are posting "I'm a contractor and..." stories. Reading your posts makes it crystal clear that you often haven't a clue what the definition of "independent contractor" is. And you're making your living as one?!? The mind boggles. It really does.

  46. 4 words by serutan · · Score: 4, Insightful

    Apply for a job.

    A lot of people are afraid to be contractors, because of a mythical notion called "job security." They think that if the economy suddenly collapses their company will protect them while contractors starve. These people don't get out enough.

    If you do a little arithmetic you will find that the amount you get paid over an FTE employee far exceeds the dollar value of the gym, paid vacation, insurance etc. If that's not the case you are with the wrong agency. Forget the award ceremony and take yourself out to dinner every time you deposit a paycheck. By being a contractor you are beating the system. Don't let the system convince you otherwise.

    1. Re:4 words by Procyon101 · · Score: 3, Insightful

      Totally. I have been primarily contract through the dotcom boom and bust and am presently. I have had a couple permanent positions throughout that time also. The differences?

      1) I get paid more to be a contractor.
      2) I get fewer benefits
      3) I make enough in cash to go out and buy those same benefits and still ahve more money.
      4) I just don't deal with politics. When stuff hits the fan I go to my dumb guns and say "huh? I'm just a contractor."
      5) I have a much more varied and interesting job variety.
      6) I have just as much job security as permanent. Probably moreso because my network being a contractor is much wider and I can jump jobs at the drop of a hat.
      7) I can pretty much take time off whenever I want... I just finish off a project and don't get another for a bit. This has allowed me to do outside projects, take extended vacations and even start a side company.

      Contracting has been very good to me. Sure, I'm treated pretty much just like an employee at my host company, and I prefer it that way... until the politics start, then I make it very clear I don't work there.

  47. If this case goes through BellSouth is screwed by retendo · · Score: 3, Interesting

    If HP is found guilty then they are not the only ones who will go down for this. BellSouth is very guilty of this. At one point they fired most of their full time IT and development staff and hired Accenture to do most of their IT and development work. Here's the catch, Accenture went and hired all of the same people who were "fired". The same people who had been working the same job for five to fifteen years went right back to work at the same place sitting at the same desk. The only difference is they started getting their paychecks from a different company. Oh, and the other difference is, Accenture did not pay any overtime. Of course some people used the transition to their advantage and made use of their new employer but the whole thing seemed like a somewhat shady tax evasion thing. This happened during the tech bubble burst so people were happy just to have a job. It did seem insane to some people because now BellSouth was paying two to five times as much per resource. I figured it was a big shuffling of the corporate books. I did wonder how legal it was though. This case with HP could prove to be interesting......

  48. This should definitely be changed by sytelus · · Score: 2, Interesting

    In one of the clients I worked for, they gave contractors literally 2'X4' desks to work while every other employee at any level in that company had 5 times bigger desk space. This company never invited contractors for company christmas parties and even didn't bothered to set them up with their private voice mail. They wouldn't be invited to participate in meetings that are critical to the project and would be notified later of only outcomes of the meetings. The contractors won't be even invited in to project success parties while the fact was that it was just those contractors and only them who actually wrote any code to build the project. If project is running behind the contractors would be asked to drop their plans and work in weekends at Friday 4 PM and often asked to work late to meet deadlines. They will be even forced regularly to cancel their planned vacations without sufficient notice. When project would end the company will inform them in the morning that it was their last day! The employees, mostly managers, would have completely different life styles of frequent parting at company's cost, vacationing and useless meetings. The contractors were just worker robots without any feelings or need for social interaction with their collegues, they weren't humans. They had a view that contractors can be treated as worst as they want to because they had higher pay rates and legally only few rights. This is inspite of the fact they were the ONLY contributor in actually building the product.

  49. How many people have that option? by A+nonymous+Coward · · Score: 2, Insightful

    I notice you say, "when I worked in USA" and mention negotiating a better contract. This implies that you have a lot more choices than most people. Not everyone has as many skills or is as smart as you. Are we supposed to let the average IQ Wal-Mart worker just get sick and die?

    People don't always have a lot of choices in this world. That doesn't make it right for those that do have choices to stick it to those who don't. Those who have choices should take advantage of their skills by doing better, not by taking advantage of those who are less well endowed with brains and luck.

    1. Re:How many people have that option? by Hentai · · Score: 2, Insightful

      Are we supposed to let the average IQ Wal-Mart worker just get sick and die?

      If it's a choice between that and forcing your average /. to pay an extra 50% for his legos and console games, forcing your average WASPer mom to pay an extra 30% for her kids' Frosted Sugar Bombs, and forcing your average collage frat to pay an extra 75% for the 12 cases of Bud Light, guess which way the American public is going to choose? Besides, it's not like actual people are getting hurt. Well, not people we care about anyways, the ones who could afford to keep all their teeth and live in decent suburbs anyway - just pariahs.

      Our culture only operates if it has a disenfranchized underclass. Try to raise that bar, and you doom your own children to living in squalor alongside them. People are ultimately too smart to be that altruistic, and too dumb to listen to real solutions until it's nearly too late (like poor Bucky Fuller).

      --
      -Hentai [in vita non pacem est]
  50. Re:Assholes by kindbud · · Score: 2, Informative

    These stupid fuckers are screwing all the other people in this country who make their living as temps, or more importantly, as in-place consultants.

    No, the losing defendants are. If they had no cause of action, the plaintiffs wouldn't file. If the cases had no merit, they'd be dismissed. Blame the abusers of the contractors, not the abused contractors.

    Some of the restrictions and "rules" were down right retarded. I won't even bother mentioning them.

    Of course not. You haven't got the goods. This is just hot air.

    The relationships with permanent employees (often in the same friggin' project) were strained and sometimes became akward.

    No shit. They knew what was up. Your presence was a threat from management. "We don't really need permanent employees."

    I could care less about the "let's hold hands and sing Kumbaya" crap, but LET ME DO MY JOB FERSSAKES. You're effin' paying for it anyway.

    You're a contractor. You think management is wasting your time, but you are getting paid for it. What's the fuss? Come in, do what you're assigned, get a check, go home. What's the frickin' problem? Did you own stock in the company or something? What skin is it off your nose if management wants to be - in your opinion - inefficient? Did they contract your services as an efficiency expert?

    YOU'RE A CONTRACT WORKER FOR THE LOVE OF ZOD!!

    Not if the contract is used to get around labor laws, you aren't.

    --
    Edith Keeler Must Die
  51. Long-term contractor here by aerdt · · Score: 2, Insightful

    I have been a long-term sub-contractor for 6 years. I work for a company that outsourced their IT staff to a well-known IT solution provider and I work for them as a sub-contractor. Sounds confusing? Yes, it is. I really don't know who my "boss" is. Is it the supervisor from the company that issues my paycheck, the company that I currently perform services for, or the managers of the company that I receive 'orders' from? Believe me, being a contractor is not fun, because you're basically treated as a "temporary" resource without any chance of climbing the corporate ladder, and have to endure arbitrary pay cuts or incompetent managers who just happen to have forgotten to renew your contract, but at the same time, I have outlived many of my "full employee" collegues. Well, I don't consider 6 years as a "temporary" employment, but nonetheless I am lucky, because I survived a great number of layoff rounds, where generally only employees got the pink slip and not the contractors. I also do not have access to stock options, certain benefits and i am usually overlooked when it comes to corporate gatherings or internal meetings, but I do have a lot more responsibility than some of my "employee" counterparts. However, that is usually made up with more $$$ in my pocket, but, believe me, I'd much rather be "part of the family" than always the exception. It can be extremely difficult at times, especially, if you basically work for three companies and sometimes get conflicting orders from the various parties and can never really 'bond' with anyone, because for you are just a 'resource', but basically perform the exact same work and more tha n your employee worker bees.

  52. It's even dumber than that by lorcha · · Score: 2, Insightful
    These contractors are claiming that the IRS would consider them employees of HP so they are employees.

    Well, guess what. Even if they get the IRS to reclassify them as employees, all these "employees" are entitled to is to have HP withhold their income taxes for them. That is the purpose of the guidelines. To determine HP's tax liability. For more information, please see IRS Form SS-8: Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding. In it, you will find the infamous "20 questions" for determining whether or not your contractor is really a contractor for income tax purposes.

    The IRS couldn't give two shits if you give your employees benefits or not as long as you withhold their income taxes.

    --
    "Avoid employing unlucky people - throw half of the pile of CVs in the bin without reading them." -- David Brent
  53. IRS Publication 15-A by anthony_dipierro · · Score: 2, Informative

    For more information on who is an employee and who is a contractor, see IRS Publication 15-A.

  54. I am a classrep on this law suit by ClassRepresentative · · Score: 2, Insightful

    I am one of the "contractors" that are named on this suit. I am also a class rep on the commity that makes me one of the first 33 you read in the article. That being said I need to exsplain a few things, at least in boise, id. 1.) It is not really a choice to be a contractor or not in boise. Hp makes the economy go round here so they get away with whatever they want. They hire "contractors" to do the job not perm employees. To get in as an HP employee takes an act of congress most of the time. I am not a contractor by choice and neither are most of my associates 2.)I did not sign any contract and I do not get an i99 form. I do not have more freedom than a regular employee as a matter of fact it is the other way around. 3.)I do not get paid more money than a regular employee. There have been a lot of layoffs and plant shutdowns in the last few years and that makes the job market very difficult. Because of that the "company" I work for and HP know they can treat us how ever they want. 4.) Contract workers in my area have no uniouns, rights, and Idaho have almost no labor laws except what they have to adopt from the federal goverment. Do you start to see the picture I am painting? 5.) We are not temp workers, we were not hired for a special project. I work in the research and developement department at HP. I have been there for years and at the site for years. I work next to HP people doing the same job in the same building but get nothing. 6.) They tell you when you get hired that you are going to get a,b,c and d. Then they take away b, c, and d and a being your wages get cut. As a contractor there is no negotiation on this. 7.) I don't get raises because HP says there is a wage freeze. I don't get promoted because there is a position freeze. If I am contracted then how does HP get to command what I make, what my hours are, what I work on, how I do my job. Does this sound like a contracted worker to you? I live in a town that if you are an average joe trying to support your family and live your life this is your option. It is not right and it needs to change. HP and the "company" I work for are taking advantage of a bad economy and a right to work state. We know that are negative outcomes to this but it has gotten so bad that when is enough enough. I am one of you another daddy, husband, techy trying to make it in the world. When do we as workers get to stand up and say enough is enough. If you disagree fine but but it with a generic informed view of the situation. Thank you for all the support to those who have given it.

  55. I am a class rep on this lawsuit by ClassRepresentative · · Score: 2, Insightful

    I am one of the "contractors" that are named on this suit. I am also a class rep on the commity that makes me one of the first 33 you read in the article. That being said I need to exsplain a few things, at least in boise, id.
    1.) It is not really a choice to be a contractor or not in boise. Hp makes the economy go round here so they get away with whatever they want. They hire "contractors" to do the job not perm employees. To get in as an HP employee takes an act of congress most of the time. I am not a contractor by choice and neither are most of my associates
    2.)I did not sign any contract and I do not get an i99 form. I do not have more freedom than a regular employee as a matter of fact it is the other way around.
    3.)I do not get paid more money than a regular employee. There have been a lot of layoffs and plant shutdowns in the last few years and that makes the job market very difficult. Because of that the "company" I work for and HP know they can treat us how ever they want.
    4.) Contract workers in my area have no uniouns, rights, and Idaho have almost no labor laws except what they have to adopt from the federal goverment. Do you start to see the picture I am painting?
    5.) We are not temp workers, we were not hired for a special project. I work in the research and developement department at HP. I have been there for years and at the site for years. I work next to HP people doing the same job in the same building but get nothing.
    6.) They tell you when you get hired that you are going to get a,b,c and d. Then they take away b, c, and d and a being your wages get cut. As a contractor there is no negotiation on this.
    7.) I don't get raises because HP says there is a wage freeze. I don't get promoted because there is a position freeze. If I am contracted then how does HP get to command what I make, what my hours are, what I work on, how I do my job. Does this sound like a contracted worker to you? I live in a town that if you are an average joe trying to support your family and live your life this is your option. It is not right and it needs to change. HP and the "company" I work for are taking advantage of a bad economy and a right to work state.
    We know that are negative outcomes to this but it has gotten so bad that when is enough enough. I am one of you another daddy, husband, techy trying to make it in the world. When do we as workers get to stand up and say enough is enough. If you disagree fine but but it with a generic informed view of the situation. Thank you for all the support to those who have given it.

  56. Re:Not accurate... by ClassRepresentative · · Score: 2, Insightful

    Just to add a tidbit when a major company hires a "flexible" workforce they are also accomplishing a few other things.
    1.) They have to report when they have a major layoff of regular employees but "contracted" they are obligated to do nothing. Then they do not have to watch their stock drop.
    2.) They can as HP did last quarter lay off as many contactors as they want to show larger profit on the 4th quarter. Since they do not have to tell anyone it all appears to be profit and makes the stock go up.
    I watched a lot of good men and women loose their jobs last quarter. Some of them have been working in my department for 6 years plus. There was no notice, no severance, no thank you for your hard work. Just turn your badge in at the security desk and goodbye. This breaks my heart. These are hard working Americans who are trying to do their best, help make a company strive and then boom gone. If we signed contracts and negotiated our wages then maybe this would not be as bad but in the environment of Boise you work for HP and it is just another company that signs your checks (after taking a very large chunk).

  57. 20-year contractor speaks, so LISTEN, DAMMIT! by Tsu+Dho+Nimh · · Score: 2, Interesting
    I've been a (mostly) contract worker since the mid-1980s, mostly as a tech writer, mostly for high-tech companies. Although I've been in and out of a few companies several times I have never mistaken my treatment for that of a permanent employee. I'm a hired hand, not family.
    • I get a higher hourly wage than permanent employees doing the same work.
    • I can use the extra puy to get benefits from the contracting agency ... and they can be pretty good.
    • I can leave early, because I'm paid by the hour, not with a weekly salary.
    • I don't have to play office politics: I just do what they hired me to do and watch managers come and go. In one term at ChipZilla I belonged to three departments while working on one project.
    • If I work more than 40 hours a week, I get OVERTIME ... salaried permanent employees don't.
    • I don't have to get or give performance reviews. If they don't ask me back, I obviously screwed up somewhere.
    • "Does the employer have control over where you work, what time you work and what you work with?" Yes, because letting contractors choose to work in Puerto Vallarta when the project is in Boston is a bit awkward. You have to keep the same hours as the rest of the team, and if they hired you for Project Orlando you can't decide unilaterally to work on Project Ottowa instead.

    "Miller said she was employed by HP in Boise from 1989 to 1995, when she took a severance package and left the company. She returned later in 1995 as a contract worker and worked at HP until March 9. Part of the time she was a contract employee through Veritest and Manpower Professional. Her jobs included testing software for HP printers.""

    Something about this sounds wierd. Every employer I know of has had a strict time limit on length of contract: ChipZilla's is one year, with a minumum of 6 months off the payroll before you can be recontracted. A series of contracts doesn't equal a permanent employment.

    1. Re:20-year contractor speaks, so LISTEN, DAMMIT! by hax4bux · · Score: 2, Interesting

      Where is the logic here? Just because your a contractor, you should be on a different phone PBX and on a different mail server? Why? Your contracted to HP and surprised to be doing HP tasks? Why?

      I understand the labor market in Boise is limited (I live only a few hundred miles from Boise). I suck it up and fly to San Jose. You will be doing similar when HP shuts down, so list your house for sale now and beat the rush.

      I guess I could litigate my way to employment, but for some odd reason I'd rather just compete on my skills.

    2. Re:20-year contractor speaks, so LISTEN, DAMMIT! by teq_man · · Score: 4, Insightful

      This is great for you but most of the contractors that I know are not in that situation. They are working for lower pay, little vacation time, have performance reviews without raises to follow them up. And are not contractors by chioce... They have families, homes, and long technical backgrounds. They are forced into accepting the lower wages in order to try to take care of there families. They have no benifits and insurance options that cost them half of thier wages, which are usually 10 to 20% below tha national average. We are not production workers we are engineers, techs, and managers that have watched long term employees be layed of and then come back the next day as a contractors for half the pay because there are no technical jobs out there. We take jobs with contracting agencies because they are are only option next to working for minimum wage and losing everything we own. We are struggling to survive. Most of us have spent several years in the industry and it is all we know. Most of us love the job and we are not looking for a quick buck. We are frustrated with seeing contractors being taken advatage of because of a bad economy.

  58. This isn't about taxes, smart guy by lorcha · · Score: 2, Informative
    The contractors want HP benefits and are trying to get them through the tax law. This is not likely to work, since tax law, employment law, and benefits law are all different.

    Check out Capital Cities/ABC, Inc. v. Ratcliff, 141 F.3d 1405, 1409-10 (10th Cir. 1998). After a bunch of news carriers were reclassified by the IRS as common law employees, they sued to be included in the company's retirement plan. The carriers got their asses handed to them by the Tenth Circuit Court, however, because they signed agreements stating that they understood that were not employees and were not entitled to benefits. Same thing happened in Trombetta v. Cragin Fed. Bank for Savings Employee Stock Ownership Plan, 102 F.3d 1435, 1438-39 (7th Cir. 1996) to a bunch of loan originators.

    The only reason the IRS makes it so easy to reclassify contractors as employees is that they get more money that way! Employment and benefits law are not concerned with who the IRS thinks is really an employee for tax calculation purposes.

    The fact is, even if these contractors can convince the IRS that they are employees of HP, all that will entitle them to is to get their income taxes withheld by HP. And wouldn't that be a huge victory for the little guy?

    --
    "Avoid employing unlucky people - throw half of the pile of CVs in the bin without reading them." -- David Brent