The Employee or Independent Contractor Scam

You've got some spare hours and want to earn someTo qualify for independent contractor status a
extra income. You get an offer to become ancompany must not provide any tools to work with.
"Executive Assistant" in an aluminum siding company.Example: when you call a plumber to come fix your
You visit their representative, and look over theirsink, he brings his own pipe wrench. You do not
literature, handsome colored brochures which proclaimprovide this for him. You can only supply merchandise
opportunity, opportunity, and more opportunity. But,which will be used up in the process of the job, e.g.
nowhere are benefit packages mentioned, the usual,tissues to wipe down the plumber's tools while he is
medical, vacation, sick leave, termination pay--nothingworking. The company may not specify work hours.
of this in writing. But, the rep speaks lavishly of theseThat must be left up to the independent contractor, like
"benefits." You are impressed, join the team, find youthe plumber. No other form of guidance may be
are only to collect commissions for selling aluminumexercised. You, as the customer, have engaged the
siding, work a few weeks, get disgusted and quit.plumber to attain a desired result, a workable sink,
When you go back to collect your pay, you are toldthat's all. The means of getting this desired result must
that you were never an employee, but an independentbe left up to him. And, importantly, the independent
contractor, and delay excuses are made for notcontractor must not be provided work facilities on a
having your limited earnings available yet. You wait.regular basis. This is yet another separation criteria in
Next time you try to contact them, you find the tentdetermining, is this person an employee or an
has been pulled and the company is gone. This is aindependent contractor? To top off: an independent
pattern that is practiced repeatedly, and with muchcontractor submits invoices for services (he works for
success, by con men everywhere.others beside you). And, employees do not submit
Why this pattern?invoices.
Because it enables them "cover," a means by whichSo how do you protect yourself against these
they can hide behind an advantage to them, acharlatans?
differentiation problem that the politicians are tooAsk them to write down the work "benefits" they
cowardly to solve.offer, maybe because you wish to ponder them, and /
Congress has punted on this due to the difficulty ofor, talk them over with family and friends.
precise language and because, generally, employersHave them clarify, in writing, the status of an
everywhere want to keep the language vague so as"Executive Assistant" as opposed to Sales
to give them more maneuvering room in taking onRepresentative.
additional help. These companies assert lobbyingAsk for a list of references from satisfied customers.
pressure against precise language. Some states haveAsk for bank references.
laws, but mostly subject to interpretation all over theYou won't have to go much further than this. If these
map. End result? You are caught in the middle.simple requests are filled for you, this opportunity might
Only the IRS has rules covering this debate, the exactbe worth further pursuit.
nature of which are unknown, but as a general rule runIf not, well, you've saved yourself a lot of time, effort.
something along this line:And, needless frustration.