Employee to Subcontractor? Florida

Magestry

We currently have subcontractors as installers, and we have two employees as installers. Our employee installers are both paid differently. One is paid by piece and the other is paid by salary. Our general manager would like to change our salaried installer to a sub-contractor status.
I know this employee is not going to be too happy about this, but the reasoning behind it is mostly due to economic reasons.

How would we justify the change for the salary employee to a subcontractor and not the change for the piece rate employee? If that employee asks if he could go piece rate instead of a subcontractor how could this be handled?

Theresa Gegen TX

Just because you label an employee a "sub contractor" does not necessarily make him or her a "sub contractor" under the law. Microsoft found this out to their detriment (of millions of dollars). The employees they turned into "contractors" were still legally employees, and entitled to all the employment benefits, including medical benefits, etc.

To truely be a "contractor" rather than an employee, there is a long, multi part test, dealing with issues like who controls the work and who supplies the tools. I would get legal counsel before changing this employee's status. If the employee will be mad about it, you can be sure he will get a lawyer, and you may find that your 2 other subcontractors are not really contractors and have additional rights.

Good Luck!

Tom Harper FL

Our firm represents employers with employment law issues. I would be glad to respond to your question by phone. Please call me at your convenience. My number is 904-396-3000.