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Am I an employee or a 1099 Contractor in regards to "mandatory" meetings?? Arizona

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  • Am I an employee or a 1099 Contractor in regards to "mandatory" meetings?? Arizona

    I work for a service industry that normally employees sales people as a 1099 contractor. I decided to try a new company that had "employees" that would deduct taxes from my pay, give me leads, offer benefits, etc. However, I have never gotten paid for any training or mandatory meetings in the 8 months I have worked for them because I don't technically make a "wage" I just get paid commission off of my closed sales.

    When I was an hourly employee, and required to attend meetings or training the company wanted to do, I was always paid for at least 2 hrs on my paycheck. This company requires so much mandatory meetings and trainings it can push over 10 hours a week, and most of the locations are at least 20 miles from my home round trip.

    Should I be getting paid at least minimum wage for these mandatory meetings or is the company trying to HIDE behind my commission-only compensation to conveniently pick and chose when I'm an employee and when I'm a contractor. There are over 30 of us in this city wondering the same question so the financial impact is large.

    Please let me know

  • #2
    Outside sales?
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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    • #3
      Patty's question would have been mine, too.

      If you are outside sales, there is no requirement that you make minimum wage or be paid overtime for working more than 40 hours in a work week.

      There would be no requirement to pay you a single cent for time spent in training.

      If you are inside sales, the equation gets more complicated. Seems to me that there was another thread along the same lines only a few days ago.

      So, if outside sales, you are paid correctly.

      If inside sales, give us more details.
      Senior Professional in Human Resources and Certified Staffing Professional with over 30 years experience. Any advice provided is based upon experience and education, but does not constitute legal advice.

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      • #4
        I guess commission only means just that

        This is an outside sales position so I will let my coworkers know not to expect anything for the time spent. I will be leaving this company and moving back to one where I have 1099 status but am not obligated to waste my time on "training/meetings" that aren't making me money.

        Thanks for the quick response!!

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        • #5
          Several points:
          - Your statement implies that the Independent Contractor (1099) vs. Employee status is somehow a choice. Legally, it is not. There is a very specific set of tests that determine worker classification and if the employer is really moving people around then this is a ticking time bomb waiting to go off.
          http://payroll-taxes.com/articles/art2.html
          - If the employees in question are indeed Exempt under the Outside Sales classification, then there is no legal requirement to pay them based on hours worked, including overtime, minimum wages, meetings or anything else. HOWEVER, the employer can still requires these employees to attend meetings, training, or any other task not proscribed by law.
          http://www.dol.gov/esa/regs/complian...irpay/main.htm
          "Reality is that which, when you stop believing in it, doesn't go away".
          Philip K. **** (1928-1982)

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          • #6
            Originally posted by danicawhittle View Post
            This is an outside sales position so I will let my coworkers know not to expect anything for the time spent. I will be leaving this company and moving back to one where I have 1099 status but am not obligated to waste my time on "training/meetings" that aren't making me money.

            Thanks for the quick response!!
            Your call on where to work -- at will employment once more for the benefit of the employee. (sorry, that was a brief soap box comment).

            The company thinks that you might get something out of the training. I am sure that they must be paying something for it, even though you don't get paid.

            It may be that other places that would hire you as a contractor (1099) are not in compliance with IRS regulations. Their problem, not yours.
            Senior Professional in Human Resources and Certified Staffing Professional with over 30 years experience. Any advice provided is based upon experience and education, but does not constitute legal advice.

            Comment


            • #7
              Originally posted by ScottB View Post
              It may be that other places that would hire you as a contractor (1099) are not in compliance with IRS regulations. Their problem, not yours.
              Well, as long as the OP:
              1. Makes the required state and federal estimated tax payments
              2. Has their own medical insurance
              3. Pays Self-employment tax (the full FICA/Medicare percentage)
              4. Has their own work comp coverage
              5. Doesn't mind going without unemployment benefits
              etc.
              I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

              Comment

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