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Subcontractor status

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  • Subcontractor status

    I am an independent IT contractor working at the same client for more than two years. I don't have a direct contract agreement with this client. Through my S-corp, my contract is with a recruiting/placement company which has a preferred vendor status and a contracting agreement with this client. This recruiting/placement finds and places candidates in exchange for a % commission on the hourly rate. It also handles all invoicing and pays me based on the timesheets that I submit to them.

    This morning, my client project manager told me by law my subcontractor status is good only for one year. Since I have been there for more than two years as a contractor/non-employee, I must convert to an employee in order to continue working there. My questions are:
    1.) Am I considered a subcontractor in this arrangement, given my contract with the recruiting/placement company is done through an S-corp I own?
    2.) Is there such a law that governs how long a sub-contractor can work at the same client?

    Your help would be greatly appreciated.

  • #2
    Originally posted by NEKnockouts View Post
    my client project manager told me by law my subcontractor status is good only for one year.
    Were you shown the law? No. Because no such law exists.
    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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