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Temporary Employment

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BakeMan

BakeMan

Programmer
Jul 24, 2002
129
US
I wanted to present this situation to the members of TT to get other's opinions on my current situation.

I began my IT career at a large financial corporation. I worked there for a year and a half and left for the promise of a great job at a small dot com. After six months the dot com went under. I was left out in the cold and scrambling to find work. I took my current position in desperation. That was three years ago. My current position is considered to be a "Temporary" position. This means that I am not eligible by company policy for any benefits through the company. I do no receive health care coverage, a 401k plan, stock option, vacation, or paid sick leave like the "Full Time" employees of the company. Like I said, I took the job originally out of desperation. Now that three years have passed I feel that the company has been taking advantage of me. With the current job market, there are few jobs to be found and I have had little luck in finding a position that is right for me. Currently I administrate and develop for the companies Intranet as well as do database administration and development for the companies numerous databases. I have also been asked to create several desktop applications. With the time I have been employed by the company as well as the nature of the work being performed (i.e. on going, not temporary), does anyone else think that it is unethical for a company to deny an employee benefits that other employees doing similar work are afforded. Is this even legal (I work and live in VA, USA).

Just feeling especially bad about my position today and wanted some thoughts of others on my plight.

BAKEMAN [pimp]
 
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The company is definately skating on thin ice with the use of temporary. I am sure there is a definition somewhere of what constitutes a temporary position. I agree with sleipnir in that you should contact governing bodies to see if they have gone beyond what is allowed. If they have you may want to start saving for a lawyer or hunting for a new job because it probably won't turn out to be an easy fight.

Have you approached your manager or anyone else in the company about this?

We all learn from our mistakes.


"Shoot Me! Shoot Me NOW!!!"
- Daffy Duck
 
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Yes many times. They keep promising me that they are "working on getting me that full time position".

BAKEMAN [pimp]
 
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So lets understand this. The company hired you, not an agency or 3rd party.

Then the company said "we're classifying you as temporary employee, not permanent." If so, was there a timeframe mentioned. Or was there some idea between the two of you when this relationship would end.

Are paying your taxes, or are they withdrawing for you?

You should find out for your records actually what catagory the COMPANY put you in. If they are telling YOU you're a temporary purpose you are a Temp Employee, but have you as an independent contractor on their records you neeed to know that.
 
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It may well be that if your company has run afoul of labor laws, they don't realize it.

Contact the various governmental labor agencies to find out what your rights are, then go back to your company, armed with this information.

Want the best answers? Ask the best questions: TANSTAAFL!!
 
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Kjonnn's question was the most pertinent. If the company has been using a 3rd party temporary help firm, they have effectively insulated themselves from many of the legal converns about not offering benefits.

I disagree with it, but it is a legal reality.

I know the market sucks, but I'd go elsewhere.

Software Sales, Training, Implementation and Support for Exact Macola, eSynergy, and Crystal Reports
 
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Labor laws have been watered down so much in the USA that they are practically non-existant. Companies can do just about anything they want. The elimination of overtime pay for anyone making over $22,000 a year is the latest Republican atrocity. The 40 hour work week was destroyed years ago. We have companies that require 12 hour shifts as a condition of employment.

Jim

 
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Wowee! And I thought that communism was dead in Russia the US......

________________________________________________________________
If you want to get the best response to a question, please check out FAQ222-2244 first

'People who live in windowed environments shouldn't cast pointers.'
 
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Hi there. I understand your plight. An interesting read of something that occured years ago but I think might set future prescident is this article.


and


Make note of this and do what you think is in your best interests.

Although in a rough job market you should consider the consequence of "making waves" anyplace you work. But with this kind of information you can always make note and sue for back benefits if you are ever terminated.

Cheers!
 
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Thank you all for your comments and suggestions.

Kjonnnn

Yes I am paid through a third party company, but that is as far as my involvement with them goes. I was interviewed and hired directly by company representatives and did not even have contact with the third party company until a few months ago (other than receiving my check in the mail).

I have been looking into some of the legal aspects that you all suggested and haven't had much luck. The best that I can tell is that this is an unclear matter at best. There seems to be varying laws on the federal, state and local level. None of these laws specifically state that the companies practices are illegal, but they all imply it.

I think I am going to take edemiere's advice and hold on to this until I am either forced out or disgruntled enough to leave for good.

Thank you all for the moral support,

BAKEMAN [pimp]
 
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Oh ok. Thats a common practice when using 3rd parties. Its a cost savings to the company to "lease" you from the third party because the don't have the responsibility of giving you benefits, because "technically" you are leased. Not hired. Its doesnt matter who you interview with. The fact that 3rd party is the one who's paying you, tells who really owns you. (no offense)

Back in the 80s, many temp firms started providing benefits to attract people to come to them. But obviously, there are some who still don't provide benefits. I've been an employee with no benefits from the company OR the 3rd party.

So unfortunately your beef would probably be better aimed at the third party. Remember they are getting a big cut of your salary too. The company is probably paying %50 more to the 3rd party for your services. That's how its always worked.
 
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Being employed by a third party doesn't necessarily imply that you can't get benefits.

There's that class-action lawsuit against Microsoft, for example. 3rd-party employees have (so far) been successful in getting a judge to rule that they are elegible for some Microsoft benefits, most notably pension and 401k plans.

Want the best answers? Ask the best questions: TANSTAAFL!!
 
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Generally you are only entitled to benifits if others in the company have benifits. I'm also paid by a 3rd party and they offered me benifits, which I accepted even at a pretty hefty cost to me. One key to working through 3rd parties is to negotiate a salary or Hourly rate that makes up for what benifits you don't recieve, and also any expenses you incure. People tend to forget that there is a cost to working and if your not recieving benifits that cost can add up fast. Are you a W2 or 1099 with the 3rd party? This has huge tax implications.

"Shoot Me! Shoot Me NOW!!!"
- Daffy Duck
 
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The Microsoft case had to do with employees MS hired and classified as Temps, not 3rd hirees.

In addition, a recent example of this concept is the ruling of the Eleventh Circuit Court of Appeals in Wolf v. Coca-Cola Co., 2000 U.S. App., LEXIS 612, where an ERISA claim for benefits by a leased employee was rejected, because the benefits plan specifically excluded coverage for temporary employees. The court rejected ERISA and COBRA claims made by a temporary employee against her employer.

Distinguishing Ninth Circuit opinions such as the Microsoft case, the court held that, in order to qualify for benefits under ERISA, two tests must be met: the employee must be a common law employee, and the employee must constitute an employee pursuant to the terms of the benefits plan. In Wolf, the court held that, while the employee, who was working at Coca-Cola solely by virtue of her contract with a temporary agency, may have been a common law employee, she was still not eligible for benefits because the employer's benefits plan expressly excluded coverage for temporary and leased employees.
 
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I am a W2 employee of the 3rd party, but they offer no benefits. The only compensation I receive is that of an hourly wage (no 401K, vacation, health coverage, sick leave, stock options, or profit sharing. All of which are offered to the "Full Time" employees of my company). And yes, I've sneaked a peek at the contract, they do receive 50% on top of my hourly wage. The contract that was originally signed however was for another employee. I came in to complete the last 4 months on that contract. That was 3 years ago now and at the time I knew nothing of this. I never signed a contract (then or since) and no other contract has been negotiated between the 3rd party and the employer for my continued services. All of the laws that I found governing this practice (or at least mentioning it) referenced how I work, how long I work, where I work, and expectation for continued employment in respect to how "Full Time" employees are treated. They stated that if I was employed to do the same tasks, in the same place for an indefinite period of time, that I was (without regards to 3rd parties) considered to be an employee of the company and therefor eligible for benefits. The laws reference the clauses that expressly denied benefits to employees simply by classification and said that this was not legal. That is when they began to discuss how one could legally determine if an employee could be classified as "Temporary" or not. All of these legalities are truly above my head and that is why I think it best to just stay with what I have right now. I am afraid that if I cause an uproar over this that not only I will loose my job but the 20 others here in similar situations will loose their's as well. I guess I should just be thankful that in these times I am at least getting a pay check.

BAKEMAN [pimp]
 
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Chalk this one up as a learning experience I guess. In future get as much as you can in writing from the company thet employes you (in this case the 3rd party). If you know going into it that there will be no benifits then be sure to try and negotiate an hourly rate or salary that compensates for the lack of benifits especially medical.

"Shoot Me! Shoot Me NOW!!!"
- Daffy Duck
 
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The microsoft case is convoluted at best. The original employees were employed as independent contractors, then after a reorganization due to an IRS audit, Microsoft hired some but some were "required" to come thru and agency, therefore invoking the misclassification.

In any event, you'll will probably have to make waves at this point to get the benefits you want. There are many cases like this out there, but you'll need to show that you are misclassified by your company using the 20 IRS points.

Good luck to you.
 
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