Is it legal to hire an employee, but pay them as a free agent? Say I apply at McDonald's and give the conditions that I wish to work under: 1.No income is withheld from me -- thus I am self-employed. 2.I work like every other worker, but get paid a fixed amount agreed upon. 3.I am responsible for taxes myself. 4.I ask specifically for no benefits other than money. 5.It could be contract-based, but doesn't exactly have to be. Could an employer legally do this?
Not really. If you are doing the same work as an employee and are treated the same as an employee, then the IRS (for purposes like withholding) and the government for other purposes (like wage and hour or antidiscrimination laws) is going to treat you like an employee. There is a multi-factor test to determine if you are an independent contractor or an employee. If you are working as an employee, the test will show that you are one. Failing to treat you like one is illegal and has tax consequences. See, e.g., https://www.irs.gov/publications/p15/ar02.html#en_US_2016_publink1000202292
This answer to a related question sums up the relevant concepts regarding work for hire. Since, according to your description of your relationship to A, you are not an employee (Commun. for Non-Violence (CCNV) v. Reid 490 U.S. 730), and you do not a written agreement, under US law, this would not be a work for hire: thus you hold copyright to something. I presume Company A gave you the source code and you are rewriting it to fit some technical requirement, so you have been given permission by the copyright holder to create a derivative work. You do not gain copyright to the original code: you only hold copyright to what you wrote. You would therefore need the permission of the copyright holder (of the original program) to sell copies of the modified program (currently A, company B in the future once the transfer is complete). There isn't a special "signing-over" ceremony for permission to copy, but the situation you describe is very messy. Even without a written agreement, you do understand that they intend to make multiple copies of the resulting program which includes your contribution, and you have received something of value in exchange for your contribution. So, one would argue, you have at least given permission to copy your stuff, even without a piece of signed paper -- in hiring you, you have given them an implied license to use what they paid you to create. The unclarity would be in whether you transferred your property rights, or simply licensed them to use it. Hence the recommendation to get an IP attorney.
A special case is not paying the income tax that the company is supposed to be paying on behalf of its employees. If an employee makes £4,000 a month, and the employer is supposed to pay £1,000 tax and doesn't, that's not the employer's money, that's the employee's money. Not paying the employee's money is a much more serious matter than not paying your own taxes. A google search found this article http://www.gaebler.com/Not-Paying-Payroll-Taxes.htm which says that a person not paying taxes for employees is personally liable, that this liability does not go away with bankruptcy, and that jail is possible. So their advice is: Whatever other debt you have, paying taxes for your employees' payroll is the absolutely highest priority (higher priority than paying wages, paying the rent, paying company taxes and so on).
No The intent of the proposed bill is to codify existing case law. You are an employee now and you will be an employee then. You are an employee now because a) you are not free from the company's control and direction or b) the work you are doing is the company's main business. If you read the bill you will find out that c) involves "an independently established trade, occupation, or business" so your business qualifies for this but you need to qualify for all three factors to be an independent contractor.
No You can outsource if you don't disclose Confidential Information (as defined in the agreement), or if you have the principal's permission to disclose it to the third-party contractor. The clause only applies to confidential information - a subset of all information. I know that independent contractors should have the freedom to complete the work in whatever way they want Not at all. George Clooney, the actor, is an independent contractor - he can't outsource. Of course, this is an example of a personal services contract but, more generally, while the starting position in contracting is that either party may delegate their obligations (although they remain responsible for them) the parties are free to structure their contract however they like. If they want to prohibit outsourcing, they can. If they want to specify that certain personnel must be used (or not used), they can.
You are probably an employee Answer these questions: Can you say “no” when the University offers you work? Or vice-versa, can they say “no” when you want to work? Can you subcontract the work? That is, can you hire someone to do what the University hired you to do? Do you control how and when you work? For example, when you break University rules are you subject to University discipline or is this treated as a breach of contract? Do you provide your own tools and equipment? Can you make a profit or loss (if you get paid by the hour the answer is “no”)? Do you take out your own public liability and/or professional indemnity insurance? If the answers to most of these questions are “no”, you’re an employee.
It is not uncommon for an employer to ask a former employee to assist with something as a courtesy, and sometimes the former employee will choose to do so. If it requires more than a small amount of time, this may be done under a short-term consulting contract for pay. But unless there was a contract of employment requiring such post-employment advice, there is no legal obligation for the former employee to provide such assistance. The most the former employer could do is give a poor reference if asked by potential future employers, and most large corporate employers now only give job title, salary range, and dates of employment to avoid claims of incorrect or defamatory statements in such references.
Yes, you can be fired for "not being a good fit": New York State is generally considered to be an "employment at will" state, which means that a private sector employer can pretty much hire and fire as he or she pleases and a discharged employee usually will have no legal recourse even when the discharge is unfair or unreasonable. Source: New York State Office of the Attorney General