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View Diary: IBM changes 401(k) matching rules (28 comments)

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  •  My company laid people off (4+ / 0-)

    then hired the back as contract employees with no benefits while billing the customer the same fully loaded hourly rate as before. Ka-ching!!!

    Those who do not understand history are condemned to repeat it... in summer school.

    by cassandracarolina on Fri Dec 07, 2012 at 11:47:45 AM PST

    [ Parent ]

    •  Sounds super illegal as you describe it. (2+ / 0-)
      Recommended by:
      cassandracarolina, Hey338Too

      What's a "contract employee?" You're an employee or you're a contractor. And that's based on what you in fact are (i.e. do you bear your own costs and work for multiple clients), not what your employer tells you they've decided you are.

      Apart from the labor law implications, could be a big tax evasion scheme (to avoid FICA taxes, etc).

      •  When IBM signs a contract with a client... (1+ / 0-)
        Recommended by:
        thestructureguy

        ... it's for x number of people for y dollars.  It is none of the client's business whether the people provided by IBM are contractors or employees. In IBM's mind, the client should only be concerned that the contract is executed properly.  

        I haven't been here long enough to be considered a Kossack, does that mean that I'm just a sack?

        by Hey338Too on Fri Dec 07, 2012 at 12:26:37 PM PST

        [ Parent ]

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