As if American workers haven't been ripped-off enough by corporate greed and the ruthless self-interest of the 1%, now it appears that working people may have a new cruel tactic of the relentlessly greedy to fear; the use of weak state labor laws and loopholes in LLC regulations to misclassify workers as self-employed instead of employees. You'll do the same job and answer to the same boss, but you're on your own when it comes to contributing to Social Security through your payroll taxes, as there's no 'employer' to contribute 50%, just you. Expect Worker's Compensation protections or Unemployment Insurance? Sorry, you're self-employed now, so you're on your own.
How does this happen? It happens when working people desperate for a paycheck find themselves in the offices of one of the new breed of LLC's that companies hire to lower their payroll costs. They aren't being screened for employment; heck, these LLC's don't even need to care about things like immigration status, because they aren't going to employ anyone. What this LLC is going to do is make you an "owner" in their company. You work for yourself now; "here's how to file your K1." As an self-employed "owner" in this LLC, you'll also be exempt from rules about overtime, but hey, you work for yourself now! Feels great huh?
Apparently these practices have spread through the construction industry like wildfire in some states, with some jobsites featuring more self-employed "owners" than employees. I was somewhat aware of this practice, but a recent piece at KSL 5 News really drove it home for me, and makes this practice more personal than I could by including quotes from those affected. Please take the time to read it.
Oh, and on a personal note, this was my 1st Diary !!!