If you’ve been following Bonne D. Graham on SAP Radio’s Coffee Break with Game Changers, you know I’ve been part of a roundtable discussion with my esteemed colleagues, Nina Kaufman and Renee L. Duff. Naturally, I raised the worker misclassification issue in at least two of the three shows we’ve recorded so far. It’s very important that business owners know about the harsh, if not bankrupting, penalties that can be assessed by the Internal Revenue Service, Departments of Labor, and Workers’ Compensation Boards or agencies.
Bonnie shared a personal example. As a self-employed, independent business owner, she had long taught Adult Education Courses for a school district on Long Island. The district had recently sent a packet of numerous documents converting her from an independent contractor to an employee, and she wasn’t sure this was correct.
Action One: Define the Conflict.
Bonnie and the school district disagreed about her work classification.
Action Two: Identify the Interests.
Bonnie wanted to maintain her independence, in part because she already had full-time employment at SAP. She was also concerned that the school district might try to claim her intellectual property (IP) as its own “works for hire.”
She thought they could continue the relationship as they had for the past 10 years. Bonnie believed she was a true independent contractor and wished she had been given a choice to remain independent.
We later learned the school district believed they were complying with current interpretations of the law. The administrators thought they were doing the right thing by making her an employee and offering her some of the benefits of employment. They also wanted to protect themselves from penalties for worker misclassification, while also keeping Bonnie’s courses on the schedule. They wished they didn’t have to convert their relationship, much less end it, in fear.
Action Three: Play with the Possibilities
If Bonnie could have had this conflict resolve in any way possible, she would have continued exactly as she had.
Action Four: Create the Future
As Bonnie mentioned in a later podcast, she took action to end the relationship. Regardless, some of the actions that she or the school district could have taken were:
- Discuss the purpose of the conversion and determine if there was a compromise available
- Consult their respective attorneys and have them negotiate a compromise
- Discuss a compromise with the necessary decision-makers
You are never stuck with the terms of a standard agreement. You can always negotiate exceptions to standard terms, removal of provisions, and addition of others. Often, you will learn a lot about how well you will work with an entity when you negotiate with it.
Action Five: Stay on PARR
Bonnie and the school district may have parted (on good terms), but they are still achieving results they want. She will continue teaching and speaking in other settings. The school district will find other instructors. They will both plan, act, revise, and repeat, until they fulfill their visions under whichever circumstances arise. Will you?
Need to renegotiate a contract?
There’s nothing in writing. Do I have an enforceable contract?