Happened with IBM as well, so at SVL (was STL at the time)
contractors were limited to x hours or 18 months which ever came
first and then you were gone, and I think that required at least
a year. There was one or two special situations but only the
plant manager could effect those (or so I was told). I was going
to get by it by changing to IBM France or something like that,
but I actually was going to have to go to Paris. My wife had
other ideas. sigh. She filed for divorce. No way was I leaving
California at that point.
Oh, I had almost forgotten that there was a section of Fed Tax
law that removed the Safe Harbor from consultant/contractors like
us. It had a section name and I've forgotten what it was called
and ultimately it went away.
Regards,
Steve Thompson
On 2/9/2026 6:37 PM, Phil Smith III wrote:
Yes, it's lawyers, but I think it's not quite what you said: it's actually Microsoft's
fault. Google "Vizcaino v. Microsoft Corp." That was the lawsuit where
long-time contractors got reclassified as employees.
If hired via an agency, then it's the agency's problem to make sure they're
contractors.
Yes, this sucks.
-----Original Message-----
From: IBM Mainframe Discussion List <[email protected]> On Behalf Of
Farley, Peter
Sent: Monday, February 9, 2026 6:27 PM
To: [email protected]
Subject: Re: [EXTERNAL] mainframe skills - was cross posted
So that they have deeper pockets than one individual to sue if you defraud
them, commit corporate espionage, commit HR sins, or other bad things. Once
again, it’s the lawyers worrying about “what if . . . “.
This goes back decades. When I first started consulting, employers would not
deal with DBA’s (Doing Business As) individuals, only with first-class
corporations (e.g., “class C” corps in NY state) who would invoice your cost as
a consultant through their regular vendor payment system.
Being a "first class" corporation does have many tax benefits, as you pointed
out previously.
From: IBM Mainframe Discussion List <[email protected]> On Behalf Of
Tracy R Reed
Sent: Monday, February 9, 2026 5:49 PM
To: [email protected]
Subject: Re: [EXTERNAL] mainframe skills - was cross posted
On 2/5/26 10:33, Pommier, Rex wrote:
Another issue related to this is the fact that some (many/most??) US firms
won't hire independent contractors. They require a contractor be hired through
an agency.
Why is this?
- Tracy Reed
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