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Studying For Certification Exams On Company Time?

An anonymous reader writes "Companies sometimes require employees to hold or obtain certifications — for example in order to achieve Cisco certified partner status. Some companies pay for employees' exams and encourage employees to study on company time. Others expect employees to obtain mandated certifications on their personal time and dime. Should companies be able to require employees to obtain a certification, but refuse to pay for it, under threat of losing their job to a certified individual? Should it be or is it even legal to demand this of employees, especially if such a certification was not required at the time of hire?"

51 of 281 comments (clear)

  1. Oh dear by QuantumG · · Score: 5, Insightful

    They can do anything they want. If you wanna try suing them for unfair dismissal, refer to your local laws (or consult a lawyer). But if you think you're being unfairly treated stand up for yourself.

    --
    How we know is more important than what we know.
    1. Re:Oh dear by lmnfrs · · Score: 5, Insightful

      I think parent is stating reality, not his opinion.

      I agree because most companies, in my experience, will do anything they want. Sometimes it's valid, sometimes you wish you weren't involved so you could laugh at the situation. If you're worried about an action that you think is unfair, you don't want to work there.

      Think about it, if this place caused you to Ask Slashdot to determine its decency, it's not that decent :\

    2. Re:Oh dear by usasma · · Score: 2, Interesting

      Things change - if the company feels that a certification is now necessary to do the job, then that's what they get. If you choose not to have the certification, then you'll be competing with those who do have it for a job that requires it. FYI - I have chosen not to be certified in anything. It makes the hiring process more difficult for me, but I enjoy flaunting my knowledge in the face of those who are certified :0)

    3. Re:Oh dear by Anonymous Coward · · Score: 2, Insightful

      This isn't an "insightful" answer - some moderators need a lesson or three in reading comprehension. You've completely dodged the question. "They can do anything they want" is a useless statement, because of the ambiguity given by the subsequent statement.

      Normally businesses are expected to behave within the law, so unless you make it clear that you think businesses can break the law, they cannot do anything they want. You use the cheap and easy logic of "they can get then sued for breaking the law", of course, but that's the wise ass attitude of someone more interested in playing semantic games instead of a substantial conversation.

      In the context of your answer, the question would be "does the individual have the right to sue for unfair dismissal". A question which you spectacularly fail to answer, while at the same time trying to appear tough.

      So you combine failing to answer the question, with moral indifference, with empty posturing. Pathetic, really.

    4. Re:Oh dear by Anonymous+Brave+Guy · · Score: 4, Insightful

      And you probably appreciate that and in return you're doing the certification. Everyone gets something they feel is valuable out of it. That's the way it's supposed to work.

      Meanwhile, companies who expect staff to spend their own time and money on compulsory company-related activities that weren't part of the original deal are likely to find that, regardless of the legal position, the reality is high employee turnover, few staff having the qualities the company is looking for, and ultimately a less successful business. That is also the way it's supposed to work.

      --
      If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    5. Re:Oh dear by penix1 · · Score: 4, Insightful

      Meanwhile, companies who expect staff to spend their own time and money on compulsory company-related activities that weren't part of the original deal are likely to find that, regardless of the legal position, the reality is high employee turnover, few staff having the qualities the company is looking for, and ultimately a less successful business. That is also the way it's supposed to work.

      So let's take this to the next level. How do you keep an employee from taking that training you just paid for and leaving for what the employee sees as greener pastures? How do you get a return on the huge investment you just dumped into that employee? That is the real issue on why many companies won't expend the dime on training. They can always negotiate salary and worst case scenario have to let the employee go who demands too much. It is far easier requiring a certified new hire than to go to the expense of training someone who will only leave after they are trained.

      I see continuing education as an employee responsibility. It goes with wanting to better yourself in your chosen profession. If you don't care enough to keep on top of it, why should the company? After all, it is YOUR career, not theirs.

      --
      This is a sig. This is only a sig. Had this been an actual sig you would have been informed where to tune for more sigs.
    6. Re:Oh dear by St.Creed · · Score: 4, Informative

      How do you keep an employee from taking that training you just paid for and leaving for what the employee sees as greener pastures? How do you get a return on the huge investment you just dumped into that employee? That is the real issue on why many companies won't expend the dime on training.

      In the Netherlands, you can add a clause to any contract basically stating that when they are going on training, they will repay 100% if they leave in one year, 66% in 2, 33% in 3 and 0% after that (or any other declining rate that will hold up in court - 100% in 10 years will not hold up). Most of the companies are part of mandatory collective bargaining agreements with a similar clause.

      So one of my friend has a new and shiny MBA - and he will have to fork over a serious amount of money if he decides to leave next year. If the new hiring company wants him bad enough, they'll pay it.

      I'm surprised this isn't a standard clause in the USA as well, because it solves most of the issues in this area.

      --
      Therefore, by the (faulty) logic you're using, you're just a cow with a keyboard - osu-neko (2604)
    7. Re:Oh dear by Anonymous+Brave+Guy · · Score: 3, Insightful

      How do you keep an employee from taking that training you just paid for and leaving for what the employee sees as greener pastures?

      Over here (in the UK), it seems common to agree that if an employee leaves within, say, six months of taking company-funded training, then they pay back a proportion of the cost depending on how early they leave. It doesn't lock anyone into anything but guarantees that a company either gets some return on its investment or gets its money back.

      It is far easier requiring a certified new hire than to go to the expense of training someone who will only leave after they are trained.

      Well, I don't accept your premise, but even if I did, why would someone suddenly want to leave just because they completed one training course? If an employer has that little appeal to their staff, they have bigger problems than just whether to run a training course or not...

      --
      If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    8. Re:Oh dear by drinkypoo · · Score: 2, Insightful

      I'm surprised this isn't a standard clause in the USA as well, because it solves most of the issues in this area.

      It creates whole new classes of problem, where an employee is motivated to do poor work in order to get fired so that they don't have to pay for their training. And since they can be dismissed for a whole host of reasons, then there is ample opportunity for a court battle over who foots the bill.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    9. Re:Oh dear by cob666 · · Score: 2, Informative

      In the Netherlands, you can add a clause to any contract basically stating that when they are going on training, they will repay 100% if they leave in one year, 66% in 2, 33% in 3 and 0% after that (or any other declining rate that will hold up in court - 100% in 10 years will not hold up).

      I'm surprised this isn't a standard clause in the USA as well, because it solves most of the issues in this area.

      This actually is how it's done at some places. I'm a contractor and have worked at some rather large companies in the Boston and Hartford areas. Based on conversations I've had with employees and on discussions related to being hired as an FTW at companies that DO pay for you to learn, for credit type classes you are reimbursed full tuition if the degree is job related but only if you keep a certain GPA. Part of the reimbursement contract stipulates that you will pay the company back is you leave the company voluntarily a certain percentage based on time after reimbursement.
      For companies that do not reimburse or pay for certificate classes, I find that most of the companies I've worked at very rarely have employees that are up to date with current technology.

      Having never personally worked for a company that did not pay for certification classes I would have to agree with the above posters that these companies would have a tough time keeping employees that are getting certificates on their own.

      --
      Do what thou wilt shall be the whole of the Law - Aleister Crowley
    10. Re:Oh dear by NormalVisual · · Score: 3, Insightful

      How do you keep an employee from taking that training you just paid for and leaving for what the employee sees as greener pastures?

      By keeping your own pastures sufficiently green, of course. Nowadays there seem to be quite a few employers that still don't understand that at-will employment is a two-edged sword. They're quite happy to cut people loose at the drop of a hat when the quarterlies take a dip, but will then turn around and whine when people leave because they've been putting in 50-60 hour weeks for six months straight and the company won't hire more people, or haven't gotten a cost-of-living adjustment in their salary for 5 years, or other similar problem that leads the workers to believe the company doesn't value them. It's not difficult to keep employees, but you do have to be willing to do it instead of displaying the attitude of "don't let the door hit you on the way out" as a large number of companies do today. Loyalty isn't an entitlement - it has to be earned.

      Most people don't just change jobs on a whim, but if you come out and demand that your employees spend a few thousand dollars just to keep their current job without offering some kind of incentive to do so, don't be surprised if they walk.

      --
      Please stand clear of the doors, por favor mantenganse alejado de las puertas
    11. Re:Oh dear by Llamahand · · Score: 2, Interesting

      I used to work for a public school system that had a very similar training repayment program. I was required to take X amount of training hours, and could elect to pay for them myself or have the district pay. If I paid, then I could quit at any time with no financial repercussions (aside from loss of a job...) but if if the district paid, I had to agree to work for them for at least 3 years. If I quit any time before the 3 years were up, I had to pay 100% of the training costs.

      The really messed up part was that they claimed that people would be responsible for their previous training costs even if the district fired them within that 3 year window. It turned out that they tried it a few times, and ended up getting smacked down in court every time. The clause was still in the contract, but by the time I worked for them, they never attempted to enforce it any more.

    12. Re:Oh dear by dcollins · · Score: 2, Insightful

      "Most of the companies are part of mandatory collective bargaining agreements with a similar clause... I'm surprised this isn't a standard clause in the USA as well, because it solves most of the issues in this area."

      In other words, unions make this possible. The USA has been victim to concerted anti-union propaganda for about 40 years, and most people are down on collective bargaining agreements. Hugely more so, IT workers. So, they're hung out to dry in ways like this.

      --
      We know where leadership by an anti-intellectual "strongman" who scapegoats minorities and likes boisterous rallies goes
    13. Re:Oh dear by mikechant · · Score: 3, Insightful

      It creates whole new classes of problem, where an employee is motivated to do poor work in order to get fired so that they don't have to pay for their training.

      I'd find it difficult to believe that this is a real problem except in a tiny number of cases, since an employee taking this course of action would end up with some of the following:
      a) A possible lawsuit from a company which has a lot more money than them ("they deliberately performed poorly to get fired and avoid the training payback").
      b) A bad reference (or more likely c).
      c) No reference at all and a difficult to explain gap in employment history.
      All of which could be much more disadvantageous than just paying the money back.

    14. Re:Oh dear by St.Creed · · Score: 2, Insightful

      I think you should read this:

      http://www.iser.essex.ac.uk/files/conferences/epunet/2005/docs/pdf/papers/brunello.pdf

      One of the things stated in the paper is that when the labour market is very easy (everyone can pack up and move, and everyone will always accept a new job) then general training is very expensive to provide for an employer. The consequence being that only company-specific training is given, but regular training rarely if at all. See China for a good example.

      However, when people change jobs a bit less, there is less risk for the employer to lose his investment. Apparently, the Dutch labour market is more flexible than the UK one, so employers demanded a bit more assurance on this item. This seems to be supported by other observations on the labour market as well.

      --
      Therefore, by the (faulty) logic you're using, you're just a cow with a keyboard - osu-neko (2604)
    15. Re:Oh dear by will_die · · Score: 2, Informative

      The US companies I have worked for that give unlimited amounts of money for training have required that you give them 3 years or 3 times the length of training, so a 2 year degree would require you giving them 6 years from the start of the degree. Those would be at a pro rated decrease.
      However most of the companies I have been with just set a limit, usually $3000-$4000 a year and don't require any time pay back.

    16. Re:Oh dear by ktappe · · Score: 2, Interesting

      I'm surprised this isn't a standard clause in the USA as well, because it solves most of the issues in this area.

      It creates whole new classes of problem, where an employee is motivated to do poor work in order to get fired so that they don't have to pay for their training. And since they can be dismissed for a whole host of reasons, then there is ample opportunity for a court battle over who foots the bill.

      I believe you're engaging in a straw man argument. Just because you envision a problem could happen, I challenge you to cite an example where it did happen or stats showing that it routinely happens. Don't shoot down good ideas with hypotheticals unless you have real data. 'kthanxby

      --
      "We can categorically state we have not released man-eating badgers into the area." - UK military spokesman, July 2007
    17. Re:Oh dear by Anonymous+Brave+Guy · · Score: 2, Interesting

      A certification is proof of expertise that you can show without your present employer having to know you're looking for work

      Does anyone really still believe that a certificate is proof of anything other than having paid some money for a piece of paper? A few might have genuinely demanding standards applied in the test, but IME most of them are just an excuse so CYA managers who can't judge real skill levels and the value of different candidates' past experiences can point to something to justify hiring someone who didn't work out.

      --
      If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    18. Re:Oh dear by Glonoinha · · Score: 2, Interesting

      I hired on with a company in the Boston area a few years ago, and a significant benefit was full tuition to pursue my Masters in CS at one of the Boston Universities part time (after work, weekends, etc.) Same GPA stipulation you mentioned.

      Anyways, it took me four years but I graduated - shiny new MS/CS in hand. Two months later the project I was working on finished and I found out I was being laid off (with about 100 other people that wave.) My only question - "About that $30,000 you guys invested in my education ... ?" Answer : "Nope, you're all set. Have a great life."

      That was a year ago. I'd go back and work for them in a heartbeat if they called, but in the mean time I'm working out in the real world making about twice what I was making working for them.

      --
      Glonoinha the MebiByte Slayer
    19. Re:Oh dear by Lehk228 · · Score: 2, Interesting

      but non-union IT work is great, you get as many hours as you want, as long as you want 80 or 90 a week.You even get a management job title* and you can look forward to maybe coming back as a consultant after your company shitcans you and replaces you with overseas outsourcing or an H1B making "would you like fries with that" wages who in turn gets to look forward to deportation if his master^H^H^H^H^H^H employer is dissatisfied with him in any way.


      *management job titles comes with lots of uncompensated overtime

      --
      Snowden and Manning are heroes.
    20. Re:Oh dear by mysidia · · Score: 2, Informative

      c) No reference at all and a difficult to explain gap in employment history. All of which could be much more disadvantageous than just paying the money back.

      I assume the "gap" would not be a gap at all, and very easy to explain that the former company would not provide a reference, or you were unwilling to accept their reference, because you were in a dispute with them.

  2. Does it matter? by PhrostyMcByte · · Score: 4, Informative

    You either get payed $X and get to bill $Y certs to the business, or you get payed $X + $Y and get to handle paying for $Y certs yourself. If $X isn't high enough for you, don't work there.

  3. Depends... by Jedi+Alec · · Score: 5, Insightful

    on the contract you have.

    In a fire-at-will situation you're pretty much screwed anyway, so that's not really relevant. In other situations however, an employer basically agrees to a contract stipulating that in exchange for an employee with qualifications X and labor Y said company will pay out Z in compensation. If the company then decides that X is no longer sufficient, that is basically a one-sided change to a contract. So at least in most european countries, the company can not *force* an employee to improve his skillset on his own time and dime, unless that has been stipulated beforehand. On the other hand, unless the contract is for an undetermined time period (which pretty much makes it a pain in the ass to fire someone) the company is under no obligation to prolong the contract once it runs out.

    Speaking from personal experience, if my employer tells me to bend over, be their bitch and spend my own time and money to improve my skillset if we didn't agree beforehand that would be part of the deal, I'm fully within my rights to give them the finger. On the other hand it is within my own interest to improve my skills, so if some sort of deal can be struck where both parties make an investment, it's a different story.

    Companies will often loudly proclaim that in order to comply with new regulation or to be able to compete all employees will be forced to do X. That regulation or those market forces are irrelevant to me as an employee. The only party I have made a contract with is the company itself. On the other hand sticking to one's guns while the company goes down in flames might not be the best career choice either ;-)

    --

    People replying to my sig annoy me. That's why I change it all the time.
    1. Re:Depends... by value_added · · Score: 2, Informative

      Well, contracts aside, it's still the case that large corporations offer continuing education or tuition reimbursement as a matter of policy, and while I'd hope that the value of investing in an employee should be self-evident to any employer, it wouldn't surprise me to learn that such notions fall victim to cost-cutting measures taken during tough economic times.

      Jobs in the IT field aren't considered professions (at least in the traditional sense), but it may offer some perspective to consider how other professions handle things. Consider lawyers, as a ferinstance. From the American Bar Assocation website:

      46 U.S. jurisdictions require lawyers to take mandatory or minimum continuing legal education (MCLE) courses in order to practice law within that particular jurisdiction.

      So lawyers are required to "maintain their certifications". And by extension, law firms maintain their "certified status". How about the costs for the education? Well, unsurprisingly (or not), most of the better firms offer reimbursements, and then some.

      All in all, I'd suggest it comes to how generous or otherwise enlightened an employer is at a given point in time. Should your employer reimburse you, or otherwise make accomodations? If the company's "certified status" depends on it, the answer is an obvious "Yes". If not, then I'm afraid your own needs or wishes will be considered discretionary.

  4. Re:Deppends... by Hognoxious · · Score: 5, Insightful

    So indentured servitude is OK so long as it's mentioned in advance?

    --
    Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  5. Microsoft Certifications by AnonymousClown · · Score: 5, Funny

    It depends on the company and what you'd put up with regarding compensation and study time. Although, getting a Microsoft Certification does in fact make you eligible for disability - keep that in mind if you get fired. I even think you can get a handicapped license plate in many states.

    --
    RIP America

    July 4, 1776 - September 11, 2001

    1. Re:Microsoft Certifications by guruevi · · Score: 2, Interesting

      I would never hire anyone with an MS** certification as they are particularly braindead and responsible for some of the most stupid decisions in any IT organization and responsible for the bad name that most IT departments have when it comes down to costs and ROI.

      I run my IT department with maybe 10% of my yearly budget spent on software licensing (most of which is MATLAB and Microsoft Office). There are other departments with very similar end-user requirements where compulsory Microsoft and Oracle software licensing accounts for 50% of their budgets (the other 50% being personnel and hardware) and their total budget at least 300% as large as mine. The difference I put back in hardware. Where most other end-users have to be content with Core2Duo's as their high-end machines, I can afford to give my engineers/scientists dual quad core machines and next week dual hex core workstations.

      --
      Custom electronics and digital signage for your business: www.evcircuits.com
  6. in our company... by underqualified · · Score: 3, Informative

    i work for a japanese company(clue: starts with an "N" and ends with an "EC"), and they expect us to pass the jlpt exams. we're asked to study on our own time, but the company pays for the exam fees and offers free nihongo lessons. there are certain other certifications that we should get in order to be promoted. though they are having a hard time implementing it due to the high resignation rate.

  7. Greener pastures by physicsphairy · · Score: 3, Insightful

    "Should it be or is it even legal to demand this of employees, especially if such a certification was not required at the time of hire?"

    The legality is probably contingent on whatever paper you signed when you took the job. In most states mandatory drug testing is legal, so I'm guessing knowledge testing isn't going to be something you could make many successful objections to.

    But if the company is forcing you to foot the bill for things they think add to your work value, you might want to skedaddle anyway. I mean, at that point, what do you think the chances are of you ever getting a raise? Find someone less stingy to work for and build a career that will actually carry some rewards.

    However, one argument I can think of for why you should personally pay for the certification is that it's something you get to take with you when you leave the company.

    1. Re:Greener pastures by bloodhawk · · Score: 2, Interesting

      I wish the government agencies would adopt a you pay for your certification and training attitude or at least a you must work for us for X amount of years after training or you have to pay for it. I contract in to a few IT departments and I watch public servants abuse the hell out of the system, they take positions in IT and then use it as a means for free access to expensive training. In one department I have watched no less than a dozen people take a job, get trained and immediately leave to become a contractor. At the moment there is a new person that everyone knows is only there to take all the training and then intends to leave mid year for another city, yet their is nothing they can do about it, she is taking literally 10's of thousands of dollars of training with no intention of ever using it for the department.

    2. Re:Greener pastures by Anonymous Coward · · Score: 2, Informative

      Indeed, I've once heard a person explaining that with EMBAs for example, people taking the course will very often leave their company upon completing the course, as with their shiny new paper they could find better offers elsewhere.

      So get the shiniest piece of paper you can get your hands on, then set sail for brighter pastures.

  8. Where in the world? by slim · · Score: 4, Informative

    When you ask legal questions, it's polite to mention which country you're in.

    In the UK, and probably the rest of the EU, I suspect this would not be reasonable grounds for dismissal.

    In the US, well, nothing would surprise me. Labour laws seem incredibly weak from the employee side.

    1. Re:Where in the world? by haystor · · Score: 4, Interesting

      Depends on which state. In an "at will" state, they could dismiss you, but it wouldn't be "for cause". That is, the former employee would be able to file for unemployment, since it is a change in the position the employee was hired into.

      --
      t
    2. Re:Where in the world? by rxmd · · Score: 2, Insightful

      When you ask legal questions, it's polite to mention which country you're in.

      If on Slashdot someone fails to mention what country they're in, you can be almost certain that they're in the US.

      --
      As a state gets corrupt, its laws multiply; the most corrupt states have the most numerous laws. (Tacitus, Annales 3:27)
    3. Re:Where in the world? by brainiac+ghost1991 · · Score: 2, Insightful

      But the laws vary significantly from state to state :)

    4. Re:Where in the world? by Blakey+Rat · · Score: 2, Interesting

      In the US, well, nothing would surprise me. Labour laws seem incredibly weak from the employee side.

      The US is composed of 50 States, each of which has their own labor laws. The United States isn't a single country, it's a collection of States. That's... United.

      Saying, "I'm in the US" is not even close to sufficient-- I would wager the labor law differences between California and Texas are more substantial than the labor law differences between the UK and France. (To give a related EU example.)

  9. Re:Deppends... by bkpark · · Score: 3, Interesting

    So indentured servitude is OK so long as it's mentioned in advance?

    Sure, except for the very narrow types of indentured servitude prohibited, at least in U.S., by U.S. Constitution.

    If you say "indentured servitude is not acceptable" for a very broad definition of "indentured servitude", you invalidate quite a lot of contracts, such as the noncompete clauses, nondisclosure agreements, etc. that are meant to reduce the unknowns of running a business. Without those contracts and the world being full of unscrupulous individuals as it is, good luck running a free market economy.

  10. Re:It's called competition by NNKK · · Score: 4, Informative

    What next, you have to bring your own desk?

    Actually, yes. Generally speaking, employers in the US may require workers to purchase their own equipment without reimbursement. The expenses are tax deductible for the workers, but that's about it.

    Although rare in IT, there are a lot of jobs out there where this is, to one degree or another, routine. Employees that have to wear uniforms are a good example. Jobs that involve a lot of driving often require use of the employee's own car, and don't always provide reimbursement.

  11. Here in Germany it's sensible by BadDoggie · · Score: 3, Interesting
    A company can require a cert as a condition of employment but if they require maintenance, they must foot the bill for time to learn/study and for the (passed) testing (no paybacks for the failed attempts). It's a matter of "reasonableness", "human rights", working hours laws and social justice, the latter being very important here.

    Unless there's something in the contract explicitly putting all the burden on the guy needing certs (nearly impossible and unenforceable), the company pays to maintain. If you think that's bullshit, remember that the company itself profits from that maintenance and a n experienced worker.

  12. Makes you more employable by petes_PoV · · Score: 3, Interesting
    Companies need to recognise that mandating any sort of accreditation makes you more qualified (hence the requirement) not only for their benefit, but for other employers, too. If they don't recognise this, then walk. We all do things on our own time to keep up with technology and stay aware of new trends and directions. Partly for our own self esteem, but also as we tacitly know that it's necessary - if not for the current job, then for the next one in our careers.

    Depending (as others have said) on how well your government requires companies to treat their serfs, you may have some protection or you may have to lodge your disapproval with the usual two word response: "I quit". However, bear in mind that the reason for walking out (that your employer was asking you to become better qualified) will get a dim reception from any interviewers. Better to make the effort, get the certification and then start looking for something better. Now that you have another string to your bow.

    --
    politicians are like babies' nappies: they should both be changed regularly and for the same reasons
  13. Re:It's called competition by JonJ · · Score: 3, Funny

    What next, you have to bring your own desk? Stoppages from your paycheck for rent & electricity?

    Stop giving these people ideas, please.

    --
    -- Linux user #369862
  14. Employment vs. freelancing by Anonymous+Brave+Guy · · Score: 4, Interesting

    The thing I don't understand is why people continue to be employees once you start crossing those lines.

    Employment is a two-way relationship. The employer takes on the risks while the employee gets a fixed income, the employer provides the work environment and carries the other costs, but in return the employer gets to keep any profits beyond the agreed fixed payments.

    In industries like manufacturing, transportation or services (of the electricity/gas/water/etc. kind) there is no way any one person could do things on their own. Here, an employment relationship as part of a larger organisation has the additional advantage of being practical, where co-ordinating hundreds or thousands of freelance workers with individual commercial arrangements might be too much of an administrative burden.

    However, in creative or knowledge-based industries such as programming, sales, marketing or training, that is no barrier. It is relatively easy for one person, or a small group of people, to set out on their own and provide the same services that they could as employees of someone else's business. For larger projects, there are few overheads in dividing up the project and assigning each part to an individual or small team; this is, after all, what would probably happen in a large company doing everything in-house anyway.

    In these industries, the workers gain relatively little benefit from an employer's physical resources and scale, yet they will still wind up leaving most of the money they generate for the employer. The only reason for such people to accept an employment relationship in these industries is the risk trade-off: an employer takes on the risk and all the general costs of running the show, but in return the employee only takes a fixed salary even if the business makes a lot of profit.

    In the US, AIUI, there is relatively little employee protection in some states anyway because of "at will" employment and limited legal rights for employees. So the only thing left is providing a ready-made work environment and covering the associated costs and administrative burdens.

    Once employees start having to sort out their own equipment anyway... Well, why would they still be employees instead of going freelance, forming their own business (perhaps with a few others with complementary skills) where they will directly take a share of the profits, or signing up as contractors (and with contractors' rates) instead of as employees?

    --
    If you disagree, post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like.
    1. Re:Employment vs. freelancing by NNKK · · Score: 2, Informative

      Speaking as someone who's been doing the independent contractor thing in the US, it's not as rosy as people seem to think. Those "contractors' rates" are _not_ what a lot of people think they are:

      * FICA (social security/medicare) taxes are "doubled" (as an employee, you only see 1/2 of the total withheld, as a contractor, you pay it all).

      * You provide your own health insurance. If you can somehow get it on the group market (a few states actually have a legal minimum "group" size of 1), you could be looking at $300-400 or more for a good plan. Maybe $500+ if you're over 40. If you get it on the individual market (at least for the next few years), well, you're screwed if you get sick.

      * If you're smart, you incorporate or form an LLC and get liability insurance. Depending on what you do and what state you're in, this may require $2000/year or more, besides the paperwork, pro-forma meetings, separate bank accounts, etc..

      * Your taxes get more complicated. Most regular employees can trivially fill out a 1040-EZ by hand or use a free or cheap software package and be done in an hour. With self-employed business income, you may spend several tens of hours/year dealing with documenting expenses and estimated tax payments, and if things get at all complicated, you're best off paying an accountant, costing additional money.

      * Invoicing the customer takes time, and you probably won't get the check or wire transfer for 3-5 weeks.

      * If you're not just working for one customer over a long period, you get a lot of overhead in finding business, preparing bids, negotiating contracts, etc., none of it directly billable.

      * _ALL_ equipment/infrastructure is your responsibility. Nobody's providing you with a laptop, an internet connection, email, calendaring/groupware, software, etc.

      * If you're working from home, your utility bills will definitely go up. If you're renting separate office space, you have that overhead.

      With these and other factors, there can easily be 40-50% or more overhead beyond salary that regular full-time employees never see.

  15. Why do "computer people" think they're special? by multipartmixed · · Score: 2, Interesting

    My next-door neighbour is a Master Electrician on staff at the local university (a very progressive employer). He is expected to keep his certification up to date, purchase new code books, etc., to keep ticket his valid. Additionally, he is responsible for the fire alarms and has to re-certify every 3 years (and this year was a MAJOR change). The university pays for his fire alarm certification test, but he is expected to study on his own time (and he spent, by my estimate, 20 hours a week for 3 weeks doing so).

    A lot of non-executive computer guys -- network administrators, system operators, repair technicians -- seem to think they are different from the other trades because they work on computers. That's BS! That's like claiming patentability of X because you added "on the internet".

    --

    Do daemons dream of electric sleep()?
    1. Re:Why do "computer people" think they're special? by st0rmshad0w · · Score: 3, Insightful

      Well, all us "computer people" were made DIFFERENT from the likes of Master Electricians when someone arbitrarily determined that we are exempt from overtime.

      If I was getting paid for off-hours emergencies and long weeks and weekend project work, maybe it would be a valid comparison, but as it is now, its not.

    2. Re:Why do "computer people" think they're special? by maxume · · Score: 2, Insightful

      It helps that he likely knew of those requirements when he applied for the job.

      The question isn't really that interesting anyway, even if the person decides to fight the company and wins, some other battle will follow soon after, and so on. So the easiest thing is probably to bite the bullet until they can find another position working for an employer that respects their employees a little more.

      --
      Nerd rage is the funniest rage.
  16. certifications are tax deductible. by DragonTHC · · Score: 2, Informative

    remember that and deduct them on your taxes.

    if the company requires it, deduct it.

    --
    They're using their grammar skills there.
  17. Hit the nail on the head... by damn_registrars · · Score: 2, Interesting

    In the US, well, nothing would surprise me. Labour laws seem incredibly weak from the employee side.

    You are correct on that observation. Over the past 30 years (plus change) the US has veered increasingly conservative in all practices that can in any way be remotely tied to a dollar (which is pretty well everything). This means that the labor unions have lost most of the membership - and power - that they enjoyed decades ago. You may have heard that Toyota recently closed their only UAW-staffed vehicle assembly plant in this country, in spite of its stellar performance.

    We have been fed BS about "labor=communism" for so long that a staggering number of people here believe it and vote on it. Notice that the "health care reform bill" that recently passed did not fix any of the major problems and people are screaming bloody apocalyptic murder.

    So yes, in a nutshell, worker's rights just have a tendency to get in the way of profit. And nowadays it is considered "un-American" to do such a thing, so most worker's rights have gone out the window.

    --
    Damn_registrars has no butt-hole. Damn_registrars has no use for a butt-hole.
  18. Re:Deppends... by dissy · · Score: 2, Interesting

    Just wanted to share my personal experience with NDAs/non-competes.

    Personally, I have always rejected non-compete contracts almost out right.
    NDAs however I have no problems with.

    Once that time comes up in the interview process, I state that being a professional I would not take their insider data to anywhere outside the company. As I would not expect that much trust right away, I have no problems signing an NDA (And I do read+sign them right as they are placed in front of me without question, or at least my questions are asked after I sign. Ive never yet had a concern I needed to ask about ahead of time.)

    Not-compete however I will state as soon in that part of the process as I can, to avoid wasting time.
    Most times there is never an issue with that, and I was hired anyway.

    The two times I remember where the company was leaning hard against me that it was required for employment and making an issue out of it, I offer my alternate.

    I will agree to a modified version of the non-compete:

    The max duration of the contract can not be over 24 months. It can be less but not more, the non-compete automatically expires for both of us after that time.

    My salary must continue to be paid for the entire time after employment is terminated that you wish the non-compete to be active. You can stop payments at any time, but a payment over 30 days late with zero contact will void the agreement.

    The rate of pay must be equal to the highest base pay rate I held in the past 13 months prior to termination.
    aka if I make $80k/yr, then suddenly get a pay cut down to $70k for 3 months, and another pay cut after just before being fired, then the 80k/yr is the price of non-compete.
    This gives me a good year to decide if I want to leave and lock in my normal pay rate, or stay for the year and accept the lower rate for that time plus after termination. Lowering my salary to $1/year and firing me 2 seconds after the change will not aid them in any way either.
    This leaves the choice of how long they don't want me working for competition fully in control with their checkbook.

    One employer accepted those terms. They chose to retain me on a non-compete status for 6 months after I was laid off, then choose to end the agreement by not paying for the remaining 1.5 years.
    I refrained from working in my field at all for that time they paid my non-compete rate, and had a job a month or so after they terminated it.
    As it was not something they got for free, they had to calculate if it was worth the cost to them or not each month. They felt only 6 months of time was required, which they paid for in full. We both came out ahead.

    For what it's worth, only one place out right rejected any modifications to the employee contract (Not just non-compete changes, but anything) and they choose not to hire me. Win for me at least, as I would not want to work at a company like that anyway. Probably a win for them too I assume.

  19. Non-competes by Roger+W+Moore · · Score: 4, Insightful

    If you say "indentured servitude is not acceptable" for a very broad definition of "indentured servitude", you invalidate quite a lot of contracts, such as the noncompete clauses, nondisclosure agreements, etc. that are meant to reduce the unknowns of running a business.

    Non-competes SHOULD be invalid unless the company is willing to pay the person a salary in compensation for the length of the non-compete duration i.e. they pay them NOT to work for the competition. Non-competes might reduce the unknowns of running a business but it also prevents an individual from working: if that is worth something to the business then they should be willing to pay, if not then why should the individual suffer on the whim of the company they once worked for?

    Arguing that they accepted the contract at the start is nor reasonable either: employers generally have the upper hand and, particularly in hard economic times, can be very persuasive. For example we would not allow employment contracts requiring a full, frontal lobotomy if an employee left a company would we? Although I don't doubt some companies in the US might jump at the chance were legal!

  20. One solution related to me by swb · · Score: 2, Interesting

    I wonder if anyone (say, in business school) has "done the math" to find out what the actual cost/benefit is of employer-paid training is and what the cost is of being too generous.

    A CIO I used to work for said the solution he came up with at a previous employer sounded expensive (which made it tough to sell) but actually solved the problem of too much and not enough employee education.

    He said previously they had problems with mandatory education requirements. Employees picked training with classes taught only during business hours and scheduled them at the worst possible times in terms of business scheduling, which often put the company in the position of canceling their training. This became a lather, rinse repeat situation; one employee didn't complete any training for 3 years and it couldn't be held against him as the company made him cancel training & certification tests every time.

    The "solution" became company-paid training & certification where the company agreed to cover the costs and a bonus for completion. Once it became a situation where there was no employee cost *and* a financial benefit to completion, miraculously employees figured out how to schedule and complete it in less disruptive ways.

    He said it was a tough sell to the board at first but after two years the time spent at courses actually went down, the scheduling caused less chaos and required fewer fill-in temps/contractors and there was a noticeable (if immeasurable) improvement in projects -- in other words, people were actually learning something and putting it to use.