Offered 1099 Work or To Be Paid Under the Table?

Getting paid “under the table” seems like a good thing when it’s happening. Being told “this job is a 1099 job” often doesn’t seem like a big deal. People who have not worked in a while, desperate for any job they can find unknowingly accept these terms of work and pay as if it is a good thing, even when it probably is not.

Working as a 1099 employee isn’t a bad thing when it’s done right and when both parties know the risks and benefits. I’ve worked many 1099 jobs (or gigs) but with the awareness that I have to make a conscious effort to make sure I fund my own income protection insurance, health insurance as well as my retirement fund. Additionally, I must make sure I pay (or save money to pay) the federal, state, and self-employment income tax I will be assessed during tax season. I am likewise aware of the benefits of working as a 1099 employee, such as complete flexibility in how and where I do the work, ability to write-off tons of justifiable business expenses and the ability to negotiate pay and payment terms.

When you work as a 1099 employee, you cannot simply think about the monies the employer is presently putting in your hand. You should understand that if you get sick or injured there is no such thing as “sick pay” or “workers’ compensation” for you. If the work decreases and there is no longer a need for you, you will not be able to collect unemployment benefits. You, as the “business owner” have to think ahead; you have to think of how to protect your health, your long-term quality of life, and your personal finances.

Take a look at this video on the misclassification of employees:

While this video focuses on labor-intensive jobs, the same risks exist for other types of job opportunities as well. You could get carpal tunnel or some other repetitive strain injury as a result of work you’re doing; or you could get in a car accident while conducting work-related business. As a 1099 contract employee, the employer would not be responsible for any medical expenses you would incur and would most likely terminate the work contract with you and hire someone else to complete the job.

This is just a little something for you to think about…

I don’t want to shed a completely bad light on 1099 employment; like I said, I have taken many 1099 contractor positions. I do, however want you to know your rights, and I want you to be ready to responsibly exert with those rights as needed.

Click here to read about your rights as a 1099 contract employee.

I sometimes see job ads claiming  to be a 1099 contractor position that actually  legally violates the terms of this employment status.  Here are some examples from jobs found on craigslist:

This craigslist job posting violates independent contractor laws because the employer can not require the contractor to regularly report to work at set hours. The contractor must maintain control over his/her schedule.

Job: Part-Time Receptionist (foster city, CA) Posted: 2012-04-02
Terms: Hours starting at 25 hours per week, Monday through Friday, from 10:00 AM – 3:00 PM or around that time frame.”

This craigslist job posting, while laying out many details and requirements of the job, has just enough flexibility to maintain it’s 1099 status;  however they may be skimming the surface by naming the pay rate because  1099 contractors have the right to negotiate their own pay and payment schedules:

Job: Outreach Consultant for Educational Services Company $50 hour (Bay Area, CA) Post Date: 2012-03-19
Rate: $50 per hour ($25 per hour for Driving Time); Bonus potential!
Terms: Approximately 20 Hours per week (14 hrs. regular rate and 6 hrs. driving rate), 10 Months per year — No hours: 6/25-7/31 (summer), Thanksgiving Week, 2 Winter Holiday Weeks, Schedule: Flexible. Must be able to attend evening and weekend events.

This craigslist job posting seems to legitimately allow the contract employee with the flexibility he/she is legally entitled according to the law:

Job: Drapery/Blind/Shade Installer  (San Jose south) Post Date: 2012-04-02
Terms: Work is part time to full time depending on the amount of work we have and your availability. We need someone who can work at least 3 days a week. We will schedule multiple jobs for you on days you agree to work for us. Your pay will be based on our window covering install price sheet…

Would you like me to evaluate your individual situation?  Contact me here online. A small consultation fee may apply.

~Blessings!

Michelle Walker-Wade
Workplace Literacy Expert

On Unemployment with No High School Diploma? You May be Forced to Get a GED

On February 2, 2012 The House-Senate discussions on approving an extension of unemployment benefits beyond March 1, 2012 has a proposal on the table that would require people who do not have a high school diploma to take G.E.D. classes as a condition of receiving more unemployment income.  They do not agree on the approach, but it is on the table for consideration.  See C-SPANS’s coverage of the discussion at the link below.  Forward the video to 34:00 min to hear the discussion on this issue; listen for about 30 minutes.

CLICK HERE TO SEE C-SPAN’S VIDEO OF THE COMMITTEE MEETING – (Make sure you’re watching the 2^nd of 3 meetings)

What are my thoughts on this matter?

I believe there should be some sort of condition for everyone receiving ‘extended’ UI benefits, however there must be additional considerations included. As one who has 10+ years of experience in adult education, I know many adult students who are low literacy, low skill and therefore do not have enough literacy to comprehend the GED textbooks, which start at about 5th grade reading level. These students require a fair amount of additional support services and time before they can even tackle the GED curriculum. GED is not necessarily purposed to BUILD literacy skills as much as it is to show proof that you have them.

Secondly, if a person is out of work because the work they’ve done most of their life is now obsolete, that person needs job re-training along with GED test preparation, and will need to accomplish both in the limited amount of time provided in the UI extension. This is a unrealistic expectation.

Thirdly, many adult students – who are retirement age – and have qualified for extended UI benefits along with job retraining benefits under other training benefit plans often attend school/training just as a means to delay receiving their social security for 2 years, yet having no intention to return to the workforce. These folks are a challenge in the classroom because they are there for the wrong reasons and they do not take the training seriously.

On the flip side, I personally know of many people who are “comfortable” only depending on their unemployment income and who have not made any real effort to find employment. They did, however, start looking for work when they were unsure if the December extension would pass.

Something needs to be done to get folks moving and engaged back into the workforce but requiring GED for UI isn’t it.

California Employers Can No Longer Access Your Credit Report As A Condition of Employment

As the job market grew tighter and tighter, employers came up with more ways to weed-out job candidates.  One method employers used was to check your credit reports.  The rationale they used was, if a person’s credit was bad they probably were not “trustworthy” enough to be employed in their company.  Nearly 60% of employers began participating in this less-than-accurate practice, considering all of the factors in recent years that have caused many hard-working, trustworthy people to fall in their credit rating.

Well, CALIFORNIA (along with 6 other States) has banned this practice; and 19 more  States are in progress of banning it as well.  This is good news for millions of unemployed and under-employed individuals.

If any employer attempts to have you sign a release to run your credit report, make sure you tell them about the California credit check law, signed by California Gov. Jerry Brown in October 2011, and went into effect Jan. 1, 2012.  This law protects MOST, but not all.

CLICK HERE  to check out MarketWatch’s video clip entitled: States Start Banning Credit Checks

Here is a list of jobs that fall into the exception-to-the rule category:

Jobs that allow a credit check include:

• A position in the state Department of Justice
• A managerial position
• A position as a sworn peace officer or other law enforcement job
• A position for which the information is required by law
• A position that involves access to specified personal information
• A position in which the person is a named signatory on the employer’s bank or credit card account
• A position that involves access to confidential or proprietary information
• A position that involves regular access to $10,000 or more of cash

If interested, you can read the full bill,  AB 22,  at: http://leginfo.ca.gov/pub/11-12/bill/asm/ab_0001-0050/ab_22_bill_20110920_enrolled.html

Employment and Unemployment in the 209

Did you know that in San Joaquin County…

• The county unemployment rate is 15.9% while Alameda County is 9.3%?

And..

The top 3 fastest growing jobs are:

• Personal and Home Care Aides ($9.86/hour),
• Information Security Analysts, Web Developers, and Computer Network Architect – ($36.11/hour)
• And other personal care and Service Workers such as beauticians, barbers, disability care workers, and food service workers – (pay rate varies)

Looking at the unemployment rates and taking into account the dramatic difference between the rate of pay for the 3 top fastest growing jobs, you must notice that unless you’re interested in spending the time and money needed to gain very technical skills, the quickest route into the workforce appears to be some sort of personal care.  Personal care jobs are often viewed as “low-skill” jobs; and as you can see from the rate of pay that these type jobs generally are low paying jobs as well.  While you many not want to make a life-long career in such low-skill/low-pay jobs, I encourage you to go ahead and enter (or re-enter) the workforce through the door that is open.

Getting in the workforce will help you:

1. Develop even more skills (particularly soft-skills which employers say are 87.5% of almost every job).
2. Build your confidence level and your general feelings of usefulness.
3. Send a message to your family and friends that you are still workforce-minded, thereby minimizing the amount of time available to do random activities that really are  low priority time-busters.

I have found, particularly in the 209 area code, the conditions of the job market have many people so despondent they’ve found solace in doing “random activities“.  What I say to you is this:  make those activities count for something.  Use them to give you an edge into a new world or work. Unemployment benefits will not last forever. Just take a look at South Carolina’s new unemployment rules coming in 2012.  Under these  new rules, after a month of collecting benefits, the unemployed must now accept any offer for a job that pays at least 90 percent of what they used to earn. After 5 months, workers must accept a job that pays minimum wage, or $7.25 an hour. South Carolina’s unemployment rate has hovered around 9% for a few years (like California).

It won’t be long before other states plagued with high unemployment rates (like California) may look at similar alternatives.  I can take a hint; can you?

Workplace Literacy Opportunity – Deli Clerk Needs Help

I went to Safeway’s deli to order a sandwich the other day. I approached the countertop as the deli clerk said, “May I help you?” She was Hispanic, appeared to be about 30 years old, and had a strong accent. Since I work primarily with adult learners who are non-native English speakers, my deli clerk’s accent was not a challenge for me at all.  I proceeded to order my custom-order sandwich only to find out that the deli clerk did not know the names of meats, cheeses, produce and the variety of breads in English. She was able to carry on a general conversation with me, using language skills she could have learned in a general English as a Second (ESL) language class where the topical lessons are around Life Skills. She, however, lacked the language skills to communicate verbally on something like wheat bread, soft roll, focaccia bread, cheddar cheese, or havarti cheese.  She did not understand statements like “light mayo” or “extra pickles please”.

I felt for her and wished I could stay there long enough to do some workplace literacy vocabulary-building lessons, specially designed to prepare her to do well as a deli clerk. I know there is a real need to provide these types of literacy classes in my community. I can’t help but wonder how long this particular lady will be able to keep her job.  I do know that Workplace Literacy classes can help her succeed.

Survey: U.S. Workers Feeling Overwrought and Unproductive – Latest News – Workforce

Read the complete article by clicking the link, or just checkout my highlights below.

Article: Survey: U.S. Workers Feeling Overwrought and Unproductive – Latest News – Workforce. By Garry Kranz

HOT POINTS OF THE ARTICLE

Nearly 30 percent of employees readily concede being “too stressed to be effective” at work for at least five days in 2011.

Two-thirds of U.S. workers reported feeling fatigued and that they have no control over what happens in their workplace.

Due to current economic crisis, employees are being asked to do more work, work longer hours than they have in the past, and under more stress than they did in the past.

Such stress creates a domino effect:

• Increased conflicts with co-workers
• Increased difficulties balancing work and personal obligations
• Increased worries about job security
• Increased absenteeism,turnover, and productivity losses

So, what’s the good news?  24 percent say the increased stress does not have a negative impact on their job effectiveness.

MY OUTLOOK

Those of us who have a job in times like these should consider ourselves blessed (or lucky – however you see it).  I’d rather be on this side of the stress than to live with the instability of joblessness and unemployment benefits. I’m relieved that our government finally agreed to some sort of extension of unemployment benefits for the 13.9 million people in the country who are currently out of work, many of whom receive a combination of federal and state unemployment benefits. But don’t get too comfy with this extension; the devil is in the details.

Work in Collaborative Teams?

From Microsoft Clip Art Gallery

Are you one who insists on working in isolation? True, there are some tasks that just work out better when a single person does it; but even with those, receiving input from others will usually result in a better end product. So, here are a few things you can expect from working collaboratively. By knowing these up-front you can get mentally prepared to cope with the stress of working in a team.

When participating in a collaborative work team…

• you will probably feel like your work is being challenged.
• you may have to defend your point of view.
• you may feel confused at times.
• you may watch or be involved in something that looks and feels like an argument.
• you will learn just how differently people interpret a data, something that is said, and information that is read.
• you may find yourself “shutting down” (but don’t do it).
• you may have to take a deep breath and hang in there until the final outcome is reached.

So, why put yourself through all of this?

Collaborative teams produce the most innovative, holistically solid solutions to problems that occur in the course of business.  Additionally, collaboration is the best way to address and resolve any systemic problems that may keep a business from being as profitable as it could be.

Something you can keep in mind is this: collaboration always happens between people, so good communication is vital to the success of the team.  Good communication is the only way to clear up misconceptions and will make the difference between a successful project and an unprofitable use of time.

So, hang in there with this one. You can do this.

~ Keep your head up! Michelle Walker-Wade

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You are free to Share — to copy, distribute and transmit the work Under the following conditions: (1) Attribution — You must attribute the work in the manner specified by the author or licensor (but not in any way that suggests that they endorse you or your use of the work). (2) Noncommercial — You may not use this work for commercial purposes. (3) No Derivative Works — You may not alter, transform, or build upon this work.

Poll – What Components of a Résumé Make the Biggest Impact?

Cast your vote please!  You may choose up to THREE!

Also, if you are a HR professional or a hiring manger, please feel free to add additional comments and share your perspective.   Thank you!

I look forward to seeing your replies!

~ Michelle Walker-Wade

Things That may Cause Your Résumé to Get Ignored

Tons of people are on the hunt for a job. Some are hunting more fervently than others, putting out résumés for every job in sight, yet getting no bites.  So what are some reasons that may cause your résumé to get ignored?  I’m sure you’ve heard that your résumé should be error free with no typos. While I agree with this as a goal, I must tell you that I have in fact called in an individual for an interview who had a less than perfect résumé.  So, let’s consider a few other résumé faux pas I believe can hurt you:

• Your résumé does not have the correct vocabulary or keywords for the job or industry for which you are applying.

 

• You have included the job or industry keywords, but you have not used them in the correct context of the job; it looks like you’ve found the right words to use, but have no idea how to use them.

 

• When comparing the body of your résumé to the job posting there is no connection between the two. The way I see it, if you did not take time to show me how you qualify for this open position, I cannot take the time to figure it out either.

 

• You either have not included accomplishment statements or the accomplishment statements you have included seem too unrealistic; this makes me wonder about your integrity.

 

• You have an unprofessional email address listed in your contact information. Email addresses are free, so why not get one appropriate for business?

 

Lastly – and this is a true story – I once received a résumé from someone who had logo images next to each of the company names for which he had worked.  The images, obviously obtained from the company’s websites, were smudgy and pixilated.  This person’s intention was to get my attention – to make his résumé stand out in the crowd. I personally did not care for this approach, and I would not personally use this strategy; but it did make me vividly remember his résumé.  I interviewed him because other than the company logos, his résumé looked good, and he could have been the right person for the job. Although I ultimately did not hire him, more than 2 years later, I still have his résumé in my files… Not sure why though.

Your résumé is your marketing advertisement for yourself. I believe you would be better off putting additional time and intentional effort into improving the quality of each résumé instead of going at full-speed sending out the same old one.

~ Go do it! – Michelle Walker-Wade

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You are free to Share — to copy, distribute and transmit the work Under the following conditions: (1) Attribution — You must attribute the work in the manner specified by the author or licensor (but not in any way that suggests that they endorse you or your use of the work). (2) Noncommercial — You may not use this work for commercial purposes. (3) No Derivative Works — You may not alter, transform, or build upon this work.