They have paid enough people off to get around FLSA . As a local truck driver we dont get overtime pay because of the FMCSA rule where trucking companies can pay drivers by different standards . Even though we are paid hourly no O/T pay . If the government truly wants to protect the employees then start there . We've been getting ripped off for years with a 50 hrs. week as a normal work week .
Trying to determine how to go forward with a medical travel business that uses nurses who work for hospitals and other organization and fly for us on their days off. This is really complicated, and we really want to comply. But hoping the courts get involved and leave us alone!
Thanks for the comment Terri! It can definitely get complicated =). Work directly with a few traveling nurse companies, so feel free to drop a line at peopleprocesses.com if you would like to book a consult!
This was helpful! Could you make a video on determining classification of virtual assistants, administrative assistants, and remote office managers? I see a huge spike in these low level jobs advertised as independent contractor roles and I'm confused about whether or not these are fair/legal. Do you have a general take on those?
I watched the video and your points seem to be largely in line with other analyses of the rule. Having owned a truck for a number of years as an independent contractor leased to a carrier and prefering to continue in that mode, the biggest potential obstacle to someone owning a truck without their own authority is number 5. If we truly are considering the totality of circumstances, that should not make me an employee.
Question: if a delivery driver has right of refusal of assignments BUT if they decline an offer, they’re sanctioned on an “offer acceptance rating %” and required to maintain a 70% offer acceptance rating in order to receive offers - and punished with horrible offers if they drop below 70% - does this impact classification?
Hey Helen! Sorry for the slow reply. To some degree, that would be "more control", so if a bunch of other things add up to w2, then it would... Having said that, the way that is worded seems very "vendor management," and is quite common in working with everything from manufacturers to service providers... so it would NOT be strong evidence of an employer/employee relationship =) Thanks for the comment!
For example I don't see how people that work in physical therapy and occupational therapy can be considered independent contractors. They still have to follow company rules/guidelines, wear certain types of clothing. They most definitely don't build their own caseload. The companies provide them with the patients to treat because the therapists don't advertise to get their own patients and promoting themselves. As far as I am concerned Occupational and Physical therapist can not be independent contractors unless they are building their own patient caseloads without the assistance from any other companies doing it for them. If I was hustling to get the patients myself to treat then I would not have to give a cut of my earnings to any companies and that to me is a true independent contractor. 🤔
I was checking all boxes until #6 then I got confused on what I should be classified. I’m a graphic designer (brought-in skill) and web designer (in training through the company), and I’m currently classified as independent contractor purely because in their rules, to be “employee”, I have to work in the office 5 days a week and can’t work from home, which is not feasible for me. I work for this company, they set my hours, set my hourly rate, got me my laptop and software, and all the work I do is for them and it’s an integral part of my team. Would I still be considered a contractor according to this new law or would that make me an employee? And what difference does this make regarding tax forms (1099 vs W2)?
Hey Mary, no particular item is definitive. Its a totality of the circumstances test. Heres a good thought to try... Are you, Mary, running your own business? Do you hold yourself out to the market, other businesses to do design work? Do have marketing costs, administrative (book keeping, corporate tax, accounts payable / recievable, etc...) costs? If not... you are probably an employee. Based on your description, you are likely misclassified... but of course, this is a youtube comment and not an exhaustive analysis. Lol.
Thank you for the detailed explanation! In the construction industry , how can subs be considered employees if they work for different companies but are essential for all of us? ( #5) I read somewhere about a percentage of income. If a company provided 90% of the income to them, then it would be considered W2. Which made no sense to me. They work for several companies. Also, high earning commission based sales people. Say realtors, roofing , or car sales. For the most part all will be 1099. How the heck is that gonna play out? My boyfriend does sales but we dont have a contract. I just own the company, and he gets his 50% of profit. He also works for other companies if they need him. I advertise little and so does he , but mostly me. He buys his own equipment, tools, pays his own gas, repairs, etc., and since we share a house i mostly pay household expenses from my share. So this turned very complicated now.
Construction is complicated! In general, the economic reality will determine the status. Also, in general, SKILLED labor is likely to be able to be a 1099, wheras unskilled labor is almost definitely an employee. Sales is its own can of worms, but you hit on the key aspects. If the sales person is in business for himself, bringing their own tools and methodology, working for multiple companies, then they are more likely to be an IC. Trained by the company, provided a salary, employee benefits, exclusivity, etc... would be more employee like.
@peopleprocesses Thank you! I called the DOL in my state, and zero luck. Got no answer to the call or a call back. No CPA or Tax Attorney has called me back either. I think there's some gray areas still to be ironed out and many don't know how to handle this. I wonder if this would be contested and/or if big companies would file suit. Seems like it's too broad and not defined at all.
The degree in nature of control is relative to my situation. I work for a trucking company where I am at Lease op. I don't own the truck but I lease it. I do not get to negotiate anything. The truck payment amount, the schedule, i get micromanaged. Calls if i drive over the white line too many times. I cannot use the truck elsewhere. Each lane that is dedicated pays a flat rate. Nonnegotiable. I feel like the work I do is central to the business because that's all the business does is cater to these contracts and that's all we do is ship freight
Probably an employee then Indo... It would cause a stir, but you could ask your employer to provide a justification on why you are an IC vs an employee, or skip that and go straight to your states department of labor and ask them to weigh in.
Does this also affect an employee we have under VISA O1B? the department of immigration says it we can employ the O1 visa holder under 1099 or W2, is this final rule over immigration or is it the other way round?
I am not a visa law expert, but my understanding is that the FLSA would determine whether the 01B is an employee or IC. The visa itself would not effect the determination at all. If a "critically aclaimed, high salary" from india were working memphis under an 01b, their FLSA status wouldnt be any different than any one else in that same position at the same pay =)
Sounds like a lot of people are going to be out of work or taking a huge pay cut. The security contractor industry is going to be destroyed. The armed security contractor and business are heavily regulated by laws, contradictory to these rules. It is required that security contractors be sponsored buy a license companies and that those companies hold the contractor's license, liability Insurance, workers compensation, Etc but the contractor not be classified as an employee because of the sporadic nature of the work details. It is also the law that the security companies provide uniforms, policies, rules and procedures when dealing with threats on clients' sites. I just see this being really bad for security personnel. Thousands will lose their jobs guaranteed!
Lots of factors would apply! Just because you are doing a lease purchase doesnt mean you are an IC or an EE... but it implies IC - because you are aquiring an asset for your business.
This new rule is going to have terrible consequences. This doesn’t just affect truckers. This affects legitimate independent contractors and freelancers. In NJ alone, 70% of truckers are independent. 36% of the entire work force are independent contractors in the entire country. To classify them as employees is insane. If this doesn’t get blocked by the courts, a lot of people are going to suffer.
Ive seen a lot of doom and gloom on this. Yes, this is definitely a tightening of the definition compared to Trump. And I personally am not a fan at all of this. But honestly, its not much different than it was back in 2017. I expect for most of you truckers that are commenting, if you are in an IC position that has been that way for a while, you don't need to worry to much! Could be wrong of course, each situation is different and I dont have enough info to do a real evaluation. Best of luck, and thanks for the comment!
The whole integral part of the nature of the business OK so what is Trucking companies gonna do to all the 1099 employees. They do one thing which is drive trailers. And that's the only thing the company does is ship freight. So how could a Trucking company get around this
They shouldn't have "been getting around it" to fucking begin with. Company drivers are employees, period and of discussion. These shit bag 1099 companies are why rates are low. Drivers sacrifice so much and don't deserve the same benefits and protections as everyone else?
Great video. The law makes it clear as mud. Typical Democrat fashion imo. Truck drivers are going to be hit hard if this goes into effect. Many owner operators are actually employees. I call them (glorified company drivers) they own equipment (a truck and/or trailer). This equipment in many times is financed/leased from the company. It's going to be interesting to see where this law goes.
@@peopleprocesses I shared your video to my channel. You do a much better job explaining this than anyone I have heard yet. Thank you for the intelligent view.
I was at Landstar from 01-09 when these rules were in place and was considered a contractor. I don’t think it will apply to most leased on contractors.
It’s a little confusing when a leased on contractor operates solely under a carriers operating authority and doesn’t have the option of working with any other carrier, broker or customer. That would seem to be control over the contractor.
The old law was more strict this law make it easier for company to scew the workers.here if you don't have a business license your a employee make law simple not a bunch of loop holes to get around it .if you don't just do office stuff you can't be salary bindens law is just a republican law with a bunch ribbon and fancy words if you're going make a workers law make put a limit to how many hours a salary employee can work so it won't kill him
The good thing is now being an employee you can choose to unionize, get paid higher wages and negotiate better benefits and work conditions. Sure prices for goods and services will skyrocket so companies will be forced to layoff and lean on robotics. Someone with deep pockets will start a biz and become the middle man subcontractor, hiring all the w2 employees and then contracting to the main carrier with cut rate drivers (cheap labor) in mass, since the main carrier wont want to pay the cost of insurance and payroll tax..this means there needs to be a source of cheap labor brought in from somewhere…
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Great video! I'm a truck driver and 6/6 I'm an employee misclassified as an independent contractor
Same.
They have paid enough people off to get around FLSA . As a local truck driver we dont get overtime pay because of the FMCSA rule where trucking companies can pay drivers by different standards . Even though we are paid hourly no O/T pay . If the government truly wants to protect the employees then start there . We've been getting ripped off for years with a 50 hrs. week as a normal work week .
Thanks for the comment!
Trying to determine how to go forward with a medical travel business that uses nurses who work for hospitals and other organization and fly for us on their days off. This is really complicated, and we really want to comply. But hoping the courts get involved and leave us alone!
Thanks for the comment Terri! It can definitely get complicated =). Work directly with a few traveling nurse companies, so feel free to drop a line at peopleprocesses.com if you would like to book a consult!
This was helpful! Could you make a video on determining classification of virtual assistants, administrative assistants, and remote office managers? I see a huge spike in these low level jobs advertised as independent contractor roles and I'm confused about whether or not these are fair/legal. Do you have a general take on those?
@Lucille - Sure! Thats a good topic. We will add it to our ideas board. Shouldnt be long! Subscribe and you will see it soon =)
Thanks for this video
Our pleasure Miles!
VERY INFORMATIVE! New Sub here! I will be using your video as a link for one of mine pertaining to the trucking industry! Thank you for your time!
Thank you very much! If you have any ideas for future topics that would help you, let me know!
I watched the video and your points seem to be largely in line with other analyses of the rule. Having owned a truck for a number of years as an independent contractor leased to a carrier and prefering to continue in that mode, the biggest potential obstacle to someone owning a truck without their own authority is number 5. If we truly are considering the totality of circumstances, that should not make me an employee.
Thanks for the comment Mark!
Question: if a delivery driver has right of refusal of assignments BUT if they decline an offer, they’re sanctioned on an “offer acceptance rating %” and required to maintain a 70% offer acceptance rating in order to receive offers - and punished with horrible offers if they drop below 70% - does this impact classification?
Hey Helen! Sorry for the slow reply. To some degree, that would be "more control", so if a bunch of other things add up to w2, then it would... Having said that, the way that is worded seems very "vendor management," and is quite common in working with everything from manufacturers to service providers... so it would NOT be strong evidence of an employer/employee relationship =) Thanks for the comment!
6/6 Carpenter, 1099'd for the last 8 years. I'm over it. Filling out an IRS SS-08 form now.
Good man! Good luck! Thanks for the comment.
Thanks for the great
My pleasure!
For example I don't see how people that work in physical therapy and occupational therapy can be considered independent contractors. They still have to follow company rules/guidelines, wear certain types of clothing. They most definitely don't build their own caseload. The companies provide them with the patients to treat because the therapists don't advertise to get their own patients and promoting themselves. As far as I am concerned Occupational and Physical therapist can not be independent contractors unless they are building their own patient caseloads without the assistance from any other companies doing it for them. If I was hustling to get the patients myself to treat then I would not have to give a cut of my earnings to any companies and that to me is a true independent contractor. 🤔
A reasonable analysis MissTanya! Thank you. If you have any ideas for future topics that would help you, let me know!
I’m a Massage Therapist that has been misclassified as IC at my place of work for nearly 13 years and I agree for my industry as well!
I am a truck driver -Owner operator
I am in sales and 6/6 I am an employee. They are trying to weasel out because I did 50% of my sales outside the office.
Thanks for the Comment
I was checking all boxes until #6 then I got confused on what I should be classified. I’m a graphic designer (brought-in skill) and web designer (in training through the company), and I’m currently classified as independent contractor purely because in their rules, to be “employee”, I have to work in the office 5 days a week and can’t work from home, which is not feasible for me. I work for this company, they set my hours, set my hourly rate, got me my laptop and software, and all the work I do is for them and it’s an integral part of my team. Would I still be considered a contractor according to this new law or would that make me an employee? And what difference does this make regarding tax forms (1099 vs W2)?
Hey Mary, no particular item is definitive. Its a totality of the circumstances test. Heres a good thought to try... Are you, Mary, running your own business? Do you hold yourself out to the market, other businesses to do design work? Do have marketing costs, administrative (book keeping, corporate tax, accounts payable / recievable, etc...) costs? If not... you are probably an employee.
Based on your description, you are likely misclassified... but of course, this is a youtube comment and not an exhaustive analysis. Lol.
Thank you for the detailed explanation!
In the construction industry , how can subs be considered employees if they work for different companies but are essential for all of us? ( #5)
I read somewhere about a percentage of income. If a company provided 90% of the income to them, then it would be considered W2. Which made no sense to me. They work for several companies.
Also, high earning commission based sales people. Say realtors, roofing , or car sales. For the most part all will be 1099. How the heck is that gonna play out?
My boyfriend does sales but we dont have a contract. I just own the company, and he gets his 50% of profit. He also works for other companies if they need him. I advertise little and so does he , but mostly me.
He buys his own equipment, tools, pays his own gas, repairs, etc., and since we share a house i mostly pay household expenses from my share. So this turned very complicated now.
Construction is complicated! In general, the economic reality will determine the status. Also, in general, SKILLED labor is likely to be able to be a 1099, wheras unskilled labor is almost definitely an employee.
Sales is its own can of worms, but you hit on the key aspects. If the sales person is in business for himself, bringing their own tools and methodology, working for multiple companies, then they are more likely to be an IC. Trained by the company, provided a salary, employee benefits, exclusivity, etc... would be more employee like.
@peopleprocesses Thank you! I called the DOL in my state, and zero luck. Got no answer to the call or a call back. No CPA or Tax Attorney has called me back either. I think there's some gray areas still to be ironed out and many don't know how to handle this.
I wonder if this would be contested and/or if big companies would file suit. Seems like it's too broad and not defined at all.
Welcome to the new USSR.
Thanks for the comment!
The degree in nature of control is relative to my situation.
I work for a trucking company where I am at Lease op. I don't own the truck but I lease it. I do not get to negotiate anything. The truck payment amount, the schedule, i get micromanaged. Calls if i drive over the white line too many times. I cannot use the truck elsewhere. Each lane that is dedicated pays a flat rate. Nonnegotiable.
I feel like the work I do is central to the business because that's all the business does is cater to these contracts and that's all we do is ship freight
I don't feel any different than an employee other than I do have expenses going up or down depending on where I fuel up
Probably an employee then Indo... It would cause a stir, but you could ask your employer to provide a justification on why you are an IC vs an employee, or skip that and go straight to your states department of labor and ask them to weigh in.
Does this also affect an employee we have under VISA O1B? the department of immigration says it we can employ the O1 visa holder under 1099 or W2, is this final rule over immigration or is it the other way round?
I am not a visa law expert, but my understanding is that the FLSA would determine whether the 01B is an employee or IC. The visa itself would not effect the determination at all. If a "critically aclaimed, high salary" from india were working memphis under an 01b, their FLSA status wouldnt be any different than any one else in that same position at the same pay =)
I think for those in the trucking industry it would change what they are considered
Thanks for the comment!
Sounds like a lot of people are going to be out of work or taking a huge pay cut. The security contractor industry is going to be destroyed. The armed security contractor and business are heavily regulated by laws, contradictory to these rules. It is required that security contractors be sponsored buy a license companies and that those companies hold the contractor's license, liability Insurance, workers compensation, Etc but the contractor not be classified as an employee because of the sporadic nature of the work details. It is also the law that the security companies provide uniforms, policies, rules and procedures when dealing with threats on clients' sites.
I just see this being really bad for security personnel. Thousands will lose their jobs guaranteed!
Thanks for the Comment!
How is this going to affect the Rideshare Industry? I see this as a National AB5 out of CA.
Hey Allen! Its definitely a step in that direction, but not nearly as restrictive as the AB5. Thanks for the comment!
penalty min federal wage 7,5$. this bill do nothing but 82 page mambo jambo...
Thanks for the Comment!
What does this mean for a truck driver that is doing a lease purchase
Lots of factors would apply! Just because you are doing a lease purchase doesnt mean you are an IC or an EE... but it implies IC - because you are aquiring an asset for your business.
How does the entity which issues the 1099 also sell the “asset for the business” as well.
Fyi.. “lease purchase” is most commonly referred to someone who’s buying the asset from the same company issuing the 1099
I own a franchise how does this affect me?
Same as any other employer! =) No difference because you are a franchise.
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This new rule is going to have terrible consequences. This doesn’t just affect truckers. This affects legitimate independent contractors and freelancers. In NJ alone, 70% of truckers are independent. 36% of the entire work force are independent contractors in the entire country. To classify them as employees is insane. If this doesn’t get blocked by the courts, a lot of people are going to suffer.
Ive seen a lot of doom and gloom on this. Yes, this is definitely a tightening of the definition compared to Trump. And I personally am not a fan at all of this.
But honestly, its not much different than it was back in 2017. I expect for most of you truckers that are commenting, if you are in an IC position that has been that way for a while, you don't need to worry to much!
Could be wrong of course, each situation is different and I dont have enough info to do a real evaluation. Best of luck, and thanks for the comment!
The whole integral part of the nature of the business OK so what is Trucking companies gonna do to all the 1099 employees. They do one thing which is drive trailers. And that's the only thing the company does is ship freight. So how could a Trucking company get around this
They shouldn't have "been getting around it" to fucking begin with. Company drivers are employees, period and of discussion. These shit bag 1099 companies are why rates are low. Drivers sacrifice so much and don't deserve the same benefits and protections as everyone else?
Thanks for the comment!
Great video. The law makes it clear as mud. Typical Democrat fashion imo. Truck drivers are going to be hit hard if this goes into effect. Many owner operators are actually employees. I call them (glorified company drivers) they own equipment (a truck and/or trailer). This equipment in many times is financed/leased from the company. It's going to be interesting to see where this law goes.
Thanks for the Comment!
@@peopleprocesses I shared your video to my channel. You do a much better job explaining this than anyone I have heard yet. Thank you for the intelligent view.
I still don’t know if a truck driver who owns his own truck and equipment but works under the license. Of the company like Landstar
I was at Landstar from 01-09 when these rules were in place and was considered a contractor. I don’t think it will apply to most leased on contractors.
Thanks for the comment!
It’s a little confusing when a leased on contractor operates solely under a carriers operating authority and doesn’t have the option of working with any other carrier, broker or customer. That would seem to be control over the contractor.
Us truck drivers are about to take a hit.
Thanks for the comment!
The old law was more strict this law make it easier for company to scew the workers.here if you don't have a business license your a employee make law simple not a bunch of loop holes to get around it .if you don't just do office stuff you can't be salary bindens law is just a republican law with a bunch ribbon and fancy words if you're going make a workers law make put a limit to how many hours a salary employee can work so it won't kill him
Thanks for the comment!
The good thing is now being an employee you can choose to unionize, get paid higher wages and negotiate better benefits and work conditions. Sure prices for goods and services will skyrocket so companies will be forced to layoff and lean on robotics. Someone with deep pockets will start a biz and become the middle man subcontractor, hiring all the w2 employees and then contracting to the main carrier with cut rate drivers (cheap labor) in mass, since the main carrier wont want to pay the cost of insurance and payroll tax..this means there needs to be a source of cheap labor brought in from somewhere…
Thanks for the comment!