Texas, USA - Is it illegal to have an applicant do work for your company as a &quot;Test?&quot; I've got a college grad I am mentoring and he just drove for 2 days, to apply for a job. The person he met with wanted him to take a programming test, and instructed him to create a website to show his skills. He spent 3 or 4 days doing so, submitted it, and then was told, that they actually wanted him to update their company website as part of their &quot;hiring test&quot; I suggested he look into small claims court for compensation. I believe it would be illegal to get a prospective candidate to do actual company work, that hiring party uses commercially, for free, as a hiring &quot;test.&quot; Am I wrong? I don't know where to look to find state law on such a matter. Any relevant code? We are in TX USA. So is the employer.
It seems that this is known as a &quot;working interview&quot;. Asking a candidate to do actual work without paying for it is illegal under Texas law. However asking a person to take an extensive, even a multi-day, skills test is not. Asking a prospective web developer to submit a portfolio of prior work, or to design a web site for a fictional company, say for the Acme Company that supplies the Coyote, is legal. Had the applicant created a web site for the actual employer without being paid, the applicant would own the copyright, and the prospective employer would be in violation of Texas minimum wage law, and would have committed copyright infringement if they used the design, without securing permission. Statutory damages for wilful copyright infringement can be as high as $150,000, and as low as $750. A federal suit must be filed to collect such damages. However, if no actual work was done, I doubt that the applicant has a valid claim. One would need to consult a lawyer to see if some other basis for a claim would apply. Many lawyers will offer an initial consultation for free or a nominal charge. Here are some Texas sources on the issues with &quot;working interviews&quot;. The page &quot;Are “Working Interviews” Legal?&quot; from the Gay Reed law firm says: If you bring someone in for a working interview you must pay them for their time in compliance with state and federal law and make appropriate withholding. Some believe that since they are only going to be there for a few days, you don’t have to do new-hire paperwork. Just skip the I-9, background check, application, and W-2. Wrong again. If you hire anyone – for 1 day or 1,000, you have to do new hire paperwork. Depending on how long you would like to conduct your interview, we can create a day contract or a week contract for the prospective employee. This will limit your exposure under unemployment compensation laws, and you can even reduce the amount you pay. Where you might pay a good hygienist $20 per hour or more as a full time wage, you can pay them minimum wage during a working interview. The page &quot;What Is a “Working Interview” and How Does It Work? from CEDR HR Solutions says: A “working interview” is the act of assessing a job candidate’s skills and ability to fit with your existing team by bringing them in to perform work for your business temporarily before you officially bring them on board. Traditionally, working interviews take place after a successful verbal interview. ... However, using working interviews does not exempt you from your obligations as an employer, and performing working interviews without understanding their legal implications can actually get you in a lot of trouble. ... If your “interviewee” is performing work for your business that would usually be performed by one of your employees, in a legal sense, that person must be treated as an employee of your business. By testing your applicants’ abilities and knowledge without having them perform actual work for your business, you can get an idea of their skill level without putting your practice at risk. “Skills tests” are especially helpful when it comes to evaluating candidates for clinical positions. ... Instead of performing an unpaid working interview or trying to call someone an independent contractor when they do not fit those requirements, hire them and use a “Getting Acquainted” period to judge whether a new hire will be a long-term fit for your practice (90 days is often a good span of time for this). The Texas Workforce Commission (TWC) has a page on &quot;Interviews&quot; which says: Interviews When interviewing applicants, apply the same standard that is applied to job applications - ask only about things that are directly related to the job requirements for the position under consideration. Watch out for tape-recording - the applicant might be tape-recording the interview without an employer's knowledge, and a video- or tape-recording of an interview would be discoverable in a discrimination claim or lawsuit. Tell the managers who conduct interviews to be extremely careful about note-taking during interviews - anything like that can be discovered in a claim or lawsuit - many discrimination cases have been lost due to careless and/or embarrassing comments written by interviewers. Test for whether something should be written down: would you feel comfortable explaining it in front of a judge and jury? &quot;Working interviews&quot; are not the same as pre-hire interviews at which an interviewee might demonstrate how he or she would carry out a sample task - an &quot;interview&quot; during which the worker performs actual work and receives what most companies would call &quot;on the job&quot; training or orientation to the company is work time - a company must pay at least minimum wage for such training time, satisfy all of the usual new-hire paperwork requirements (W-4, I-9, new hire report, and so on), and report the wages to TWC and IRS. The TWC can be reached at: 512-463-2222 The TWC page on the minimum wage says that Texas uses the federal minimum wage of $7.25/hr. It lists several exceptions, none of which seem to apply to the situation described in the question, or rather the situation that would have occurred had the applicant accepted an &quot;unpaid trial&quot; or &quot;working interview&quot;. The actual Texas law is Chapter 62 of the Labor Code The exact section is 62.051.
Can a prospective employer require you to pay to take a test as part of an interview? That is unlawful. Section 10 of the BC Employment Standards Act prohibits a person to "request, charge or receive, directly or indirectly, from a person seeking employment a payment for (a) employing or obtaining employment for the person seeking employment". See also section 11. A prospective employer is allowed to require proof of credentials (such as certifications or a diploma) which in turn might entail a non-reimbursable cost to the candidate. However, that is permissible because the credibility inherent to renown credentialing systems facilitates ascertaining that the prospective employer has no ulterior motive (i.e., profit) for requiring candidates to consume services from a certifying agency. In other words, the employer and the certifying agency must be two separate, totally unrelated agencies, for the former's reliance on the latter to be cognizable in a context of screening candidates. The post on WorkplaceSE basically describes a scam. Although that post refers to the UK, it is most likely that many other jurisdictions contain a legislative provision similar to the aforementioned statute. As an example, see M[ichigan]CL 408.478.
It just doesn’t happen. It is prohibited for a patent examiner to get a patent or any interest in a patent other than by inheritance Pursuant to 35 U.S.C. 4, patent examiners, other Office employees, and Office officers may not apply for a patent or acquire any right or interest in any patent during the period of their employment with the Office and for one year thereafter. and a patent attorney would lose their USPTO registration and law license at a minimum for violating their oath. Very few inventions have the potential to make enough money to risk a career. You will need to trust in the professionalism of many people on the path to making your idea a profitable reality.
It may be discrimination, but it is not discrimination based upon any reason that the company is prohibited from engaging in. This conduct is legal in pretty much all U.S. jurisdictions.
I've litigated cases like these before. The IRS enforcement reaction is swift and severe. Penalties for the employer are heavy and rarely waived. It would be rare for a business like this to stay operational long enough to issue a W-2. A business like this would probably be shut down by the IRS and have the people responsible for the payroll function, at a minimum, promptly burdened with tax liens, within four to six months. These cases also constitute a significant share of all criminal tax prosecutions. The odds of someone doing this spending several years in federal prison is high. Generally speaking, if the wrongdoing is fully on the part of the employer without the collusion or knowledge of the employee, the IRS will not force the employee to double pay the taxes that should have been withheld by the employer in this situation. Instead, this IRS will try to recover the amounts that were withheld from the employees but not delivered to the IRS. It will seek to recover these amounts from the employer and also from other responsible persons in the organization (and from outsourced professionals) with the authority to pay the IRS who did not do so. There may be circumstances, if push comes to shove, where the IRS could collect from the employees in a case like this one (I've never had occasion to need to research that issue), but that would be the rare exception and not the rule, in practice. On the other hand, if the employer simply does not withhold taxes or prepare W-2s at all, and either 1099s people who should have been classified as employees (or files no information tax returns at all), the IRS will generally insist that the employee pay income taxes on the full amount owed and that they pay the employee part of payroll taxes. It will also pursue the employer for the employer's share of payroll taxes. The employer will also be jointly and severally liable for any taxes that should have been reported and subjected to withholding that are not paid by the employee (perhaps because the employee spent all the money). Sometimes cases like this are also criminally prosecuted, but it is less common to do so.
Bonded labor is illegal in India, but enforcement is lax. Read Right against exploitation in Fundamental rights in India. The right against exploitation, given in Articles 23 and 24, provides for two provisions, namely the abolition of trafficking in human beings and Begar (forced labour)... As per law, they cannot make the contract binding if it relates to bonding of the laborer. But a general contract may stand in court if they have made you sign the contract and paid the duty to government for the contract. This contract will be mild form of Bonds/begar-contracts. As per the requirements of the contract, usually they will ask you to give them your original documents and degree certificate. Do not do that. That will give them control, and it's illegal. From personal experience, such companies are phonies and they want to exploit you. Visa thing is a scare. As per they wont give me Experience letter and Releasing letter; they might do that, and so you will not be able to show experience. You can file a lawsuit against them. (But you know it's a waste of time in Indian courts) As per first three things you mentioned: It is written on my company's letter head. It doesn't contain any stamp paper. It doesn't contain any company seal. It's not a contract. Do not provide them your actual signatures. Make a strange signature so that you can later argue that it's not your signature. But think about the consequences: You are going to that (probably shady) company, do you think they will hold any of their promises later, at all. Think: Will the company stay in business until your bond is over? Then how will you get an Experience certificate? That ends the answer. A few suggestions I'd suggest finding a different job. I'd suggest talking to a lawyer. It's cheaper than your life being screwed up. I'd suggest talking to your family about it. Nothing written here constitutes legal advice. Talk to a lawyer to get a legal opinion on the matter.
Barrister to instructing solicitor: “Am I working for the plaintiff or defendant?” Plaintiff Your honour, this excellent study and the expert testimony you have heard from the authors, clearly demonstrates that whiteboard testing is sexual discrimination by another name. The clear correlation between the gender of the interviewee and their ability to perform this task, which is unrelated to the job and is actually a test of how good the person is at handling performance anxiety, is being used to prejudicially and unlawfully screen out female applicants. Defendant Your honour, this discredited paper and the inconsistent testimony of the author clearly demonstrated that the methodology was flawed and the conclusions are unsupportable. When pressed, it turned out that the number of females encompassed by the catch-all word “all” was 6 - hardly a sample big enough to draw any meaningful conclusions from. Further, it turned out that the number of men who also improved was unknown because they didn’t test them! So we have the authors of a study with gender discrimination in its very methodology drawing asinine conclusions from it about gender discrimination! It may be that whiteboard testing is better at finding competent actors than programmers and this may make it a terrible recruitment tool. However, my client can run their businesses in whatever inefficient way they choose so long as it isn’t unlawful discrimination - and this isn’t that.
No - there is no general requirement to be fair to all applicants when selecting someone for a job. It's not even clear how this would work - you would need to define what "fair" means in this context, and there would be many competing definitions. Is it fair to prefer an applicant who has more experience because they received help from their parents with landing their first job? Is it fair to prefer someone with a certain look for an acting job? Is it fair to prefer someone who happens to have a similar personality to the person hiring? So if the employer finds it more convenient to use the same test every year, and if they do not mind that this gives some applicants an advantage, they are free to do that. The only exception is that discrimination based on certain, specific factors (often called "protected characteristics") is usually outlawed. The list depends on jurisdictions, but usually includes things like gender, race and age. However, even in that case discrimination is allowed if the business can demonstrate a genuine need - for example, when looking for an actor, it is allowed to hire based on gender.