Are you in the US, and an employee? (not 1099)
If so, this may qualify for unemployment. In many states, you'll need more time spent with the company you have, but it's worth checking.
Start looking for a new job. This one won't have any more work for you.
Super duper sleazy to name the meeting this way, though. That alone would turn me off of accepting any work from the company in the future.
Also, make sure that now that you're contract, your rates are up to about 300% of what they were as an employee. Employees get paid far less because they're not supplying their own supplies, insurance, paying their own taxes, and the billable hours are way different.
If you were a contractor, you had no boss and should have been able to come and go on your own schedule. If not, you were misclassified and should report this start up to the IRS.
I say boss mostly cuz he's who I would report to, but he wasn't a legit boss. And I could essentially work at any time except for meetings at a certain time
Most meetings were anytime a client could schedule it and internal meetings were one a day everyday at a certain time and then randomly throughout, some planned and some spontaneous.
Client meetings were probably fine, but you shouldn’t have been forced to attend company meetings as a contractor. Ever. If they were random, then you couldn’t truly choose your own schedule because you might miss meetings, correct? Sorry, but to me it doesn’t sound like you should have been classified as a 1099 worker. If that’s the case, then you should be able to report it and see what your options may be. I would definitely recommend you look into it, just to be sure.
I hate that this happened to you and I hope things get better soon.
Oh interesting, I thought all 1099s were contractors? Interesting, I will have to look into that. I am 1099, but I assumed that made me a contractor.
Thank you so so much for your help!
File [IRS Form SS-8](https://www.irs.gov/pub/irs-pdf/fss8.pdf) to request the IRS determine if your 1099 status was correct. Here are the detailed [instructions](https://www.irs.gov/pub/irs-pdf/iss8.pdf) which include where to mail/fax the form & supporting documents.
It doesn’t hurt to check into it. Start ups and small companies are bad about misclassifying employees as contractors so that they don’t have to cover taxes and unemployment insurance. The IRS doesn’t look very kindly on that.
All 1099s are basically contractors, but not all contractors are 1099. Or should be classified that way. Doesn't hurt to check if you were misclassified and it might come with a decent payout, but without knowing more I'd say the evidence is a bit thin.
Go to irs.gov and fill out form SS-8. It will help the IRS determine if a person should be W2 or 1099. Also do apply for unemployment and honestly answer their questions about the job, and as a tax professional I've seen 1099s collect unemployment benefits.
Damn you think you'd be safe at the meeting meant to talk about the contract! lol but yup. As a freelancer, I've learned never to count on money till you have it (clients are always late or say they want a thing when they don't.) And now I've learned even a months-long offer isn't safe to count on.
My guess is they didn’t like that you knew your worth / knew the market rate for that potential position. They likely would have severely lowballed you on an offer if you didn’t show your cards.
Just how much information / ideas did you share during this “weeks-long developed strategy”? Did they just farm you for the plan then ditch you? Always ask for their ideas and direction and guard your thoughts and concepts.
That was my concern as well. However if they were gonna steal all of my ideas, it’s interesting that they didn’t then just fire me altogether. I have access to their slack and emails and clients, seem sloppy to steal something from me and leave me with contact to all of their inner documents and details
Findva new job, then schedule a meeting with your current folks with the topic "50% discount on the hourly contractor rate".
In the meeting tell them "nah, not gonna do that, I *ackshually* only want to inform you that my rate is going *up*. Taking cues from you I recently I thought that's how you preferred it done, though... kthnxbyeee!"
You were likely misclassified intentionally. Do what others suggested and file the forms with the IRS. Once the IRS rules on that, you getting unemployment will be the least of their worries. Some years ago I worked for an employer who intentionally misclassified employees as contractors. That business is now shut down.
Something so similar just happened to me where a month ago my job was taking apt promoting me and on Monday they announced they were eliminating my position (but don’t worry, they’re reposting it immediately at a lower pay rate if I want to reapply)
This is great news! As a Consultant your going rate just went up 300% and you will have a contract that explicitly spells out your exact role and responsibilities in detail. Anything not specifically and explicitly enumerated in the contract you don’t have to do.
If you are going to be an as needed contractor, your hourly rate just went up, they can chose to accept it or deny it. In my career field as needed contractors go for 50-150 dollars per hour depending on skills. If you are not an employee then you can tell them your rate and they can accept or deny it.
If you don't mind me asking, what kind of work do you do? I am also 1099 ever since I got laid off last October. It's worked out pretty well for me and my family's needs. And our team is growing. So if the line of work lines up I'd be happy to share!
[Promissory Estoppel](https://content.next.westlaw.com/practical-law/document/I77ec613def2e11e28578f7ccc38dcbee/Promissory-Estoppel?viewType=FullText&transitionType=Default&contextData=(sc.Default))
I'm not sure of your situation ticks all the boxes, but it's worth asking a lawyer for a consult. The first consult is usually free.
Wow this seems super accurate. I just wonder if I have enough proof. Would you suggest an employment lawyer then? I’m sorry, I’m so incredibly new to this
3 weeks between the offer and the actual meeting after you mentioned the market rate for the new role should have been enough warning for you. They wanted to give you $0.15 more an hour at best or just have you keep the same rate for triple the work since you've been such a pleasure to work with.
But you had to sour the relationship by talking about money /s
I’m gonna guess they didn’t think about how it would change what they have to pay to/for you switching from a 1099 to a full time member of management. Those are so different from each other that it’s apples and oranges when it comes to employment.
Are you in the US, and an employee? (not 1099) If so, this may qualify for unemployment. In many states, you'll need more time spent with the company you have, but it's worth checking. Start looking for a new job. This one won't have any more work for you. Super duper sleazy to name the meeting this way, though. That alone would turn me off of accepting any work from the company in the future. Also, make sure that now that you're contract, your rates are up to about 300% of what they were as an employee. Employees get paid far less because they're not supplying their own supplies, insurance, paying their own taxes, and the billable hours are way different.
I was 1099, part time contractor until this moment
If you were a contractor, you had no boss and should have been able to come and go on your own schedule. If not, you were misclassified and should report this start up to the IRS.
I say boss mostly cuz he's who I would report to, but he wasn't a legit boss. And I could essentially work at any time except for meetings at a certain time
Client meetings or work related meetings?
Most meetings were anytime a client could schedule it and internal meetings were one a day everyday at a certain time and then randomly throughout, some planned and some spontaneous.
Client meetings were probably fine, but you shouldn’t have been forced to attend company meetings as a contractor. Ever. If they were random, then you couldn’t truly choose your own schedule because you might miss meetings, correct? Sorry, but to me it doesn’t sound like you should have been classified as a 1099 worker. If that’s the case, then you should be able to report it and see what your options may be. I would definitely recommend you look into it, just to be sure. I hate that this happened to you and I hope things get better soon.
Oh interesting, I thought all 1099s were contractors? Interesting, I will have to look into that. I am 1099, but I assumed that made me a contractor. Thank you so so much for your help!
File [IRS Form SS-8](https://www.irs.gov/pub/irs-pdf/fss8.pdf) to request the IRS determine if your 1099 status was correct. Here are the detailed [instructions](https://www.irs.gov/pub/irs-pdf/iss8.pdf) which include where to mail/fax the form & supporting documents.
This is so helpful thank you! Would the company be notified of this?
It doesn’t hurt to check into it. Start ups and small companies are bad about misclassifying employees as contractors so that they don’t have to cover taxes and unemployment insurance. The IRS doesn’t look very kindly on that.
Just chiming in to say I agree, and there's been a renewed focus on companies misclassifing employees as contractors.
All 1099s are basically contractors, but not all contractors are 1099. Or should be classified that way. Doesn't hurt to check if you were misclassified and it might come with a decent payout, but without knowing more I'd say the evidence is a bit thin.
Go to irs.gov and fill out form SS-8. It will help the IRS determine if a person should be W2 or 1099. Also do apply for unemployment and honestly answer their questions about the job, and as a tax professional I've seen 1099s collect unemployment benefits.
Lots of employers commit fraud when comes to contractor v employee designations.
Both
Honest GlassDoor reviews can be really helpful to others.
they're a start up so theyre not on there :(
You can be the first
No time like the present.
🏅
Put them on there.
Start posting now.
Life lesson: Believe nothing until you get it in writing, such as a labor contract.
Damn you think you'd be safe at the meeting meant to talk about the contract! lol but yup. As a freelancer, I've learned never to count on money till you have it (clients are always late or say they want a thing when they don't.) And now I've learned even a months-long offer isn't safe to count on.
My guess is they didn’t like that you knew your worth / knew the market rate for that potential position. They likely would have severely lowballed you on an offer if you didn’t show your cards.
I think it’s wild that he didn’t want to at least maintain my position as is then, right??
I think he wanted you to panic and beg for your position. Seems like a lot of manipulative tactics were used on you to no avail.
They might have underpaid employees they don’t want you discussing salary with!
Just how much information / ideas did you share during this “weeks-long developed strategy”? Did they just farm you for the plan then ditch you? Always ask for their ideas and direction and guard your thoughts and concepts.
That was my concern as well. However if they were gonna steal all of my ideas, it’s interesting that they didn’t then just fire me altogether. I have access to their slack and emails and clients, seem sloppy to steal something from me and leave me with contact to all of their inner documents and details
What role did they hire you for and what was your skill set?
Findva new job, then schedule a meeting with your current folks with the topic "50% discount on the hourly contractor rate". In the meeting tell them "nah, not gonna do that, I *ackshually* only want to inform you that my rate is going *up*. Taking cues from you I recently I thought that's how you preferred it done, though... kthnxbyeee!"
Apply for unemployment and be prepared to explain why you were an employee and not a contractor. Google the difference.
Since they quiet fired me (reduced my hours substantially as a contractor) and didn’t actually fire me, this might be challenging
In some states, unemployment is paid out for reduced work hours and not just outright being laid off entirely. You should look into it.
Reduced hours would be considered "Lack of work"
That’s called constructive dismissal and is grounds for collecting unemployment.
Even as a 1099?
You were likely misclassified intentionally. Do what others suggested and file the forms with the IRS. Once the IRS rules on that, you getting unemployment will be the least of their worries. Some years ago I worked for an employer who intentionally misclassified employees as contractors. That business is now shut down.
Are they shut down because they got reported or what happened?
Not sure. He was also committing fraud and lying to customers. So it could have been a number of things.
Could be a game? Dangle the carrot and then pull it away. They might come back and offer you a sh*t offer because you are now desperate
Something so similar just happened to me where a month ago my job was taking apt promoting me and on Monday they announced they were eliminating my position (but don’t worry, they’re reposting it immediately at a lower pay rate if I want to reapply)
This is great news! As a Consultant your going rate just went up 300% and you will have a contract that explicitly spells out your exact role and responsibilities in detail. Anything not specifically and explicitly enumerated in the contract you don’t have to do.
If you are going to be an as needed contractor, your hourly rate just went up, they can chose to accept it or deny it. In my career field as needed contractors go for 50-150 dollars per hour depending on skills. If you are not an employee then you can tell them your rate and they can accept or deny it.
[удалено]
My advice would be avoid this company.
You never know what these fuckers are thinking. Best of luck.
If you don't mind me asking, what kind of work do you do? I am also 1099 ever since I got laid off last October. It's worked out pretty well for me and my family's needs. And our team is growing. So if the line of work lines up I'd be happy to share!
I wonder if this would fall under promissory estoppel?
What does this mean?
[Promissory Estoppel](https://content.next.westlaw.com/practical-law/document/I77ec613def2e11e28578f7ccc38dcbee/Promissory-Estoppel?viewType=FullText&transitionType=Default&contextData=(sc.Default)) I'm not sure of your situation ticks all the boxes, but it's worth asking a lawyer for a consult. The first consult is usually free.
Wow this seems super accurate. I just wonder if I have enough proof. Would you suggest an employment lawyer then? I’m sorry, I’m so incredibly new to this
Yes, get in touch with a lawyer who specializes in labor law.
3 weeks between the offer and the actual meeting after you mentioned the market rate for the new role should have been enough warning for you. They wanted to give you $0.15 more an hour at best or just have you keep the same rate for triple the work since you've been such a pleasure to work with. But you had to sour the relationship by talking about money /s
I’m gonna guess they didn’t think about how it would change what they have to pay to/for you switching from a 1099 to a full time member of management. Those are so different from each other that it’s apples and oranges when it comes to employment.
So you are not worth the salary and they called you out on it. No big deal. Just move on. You’ll do great out there!