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> The NACCB is an organization of recruiters - so it's not individuals
> work 1099, but it's consulting shops. Their bread and butter is
Gene said it was "consulting businesses." Consulting businesses/shops
aren't recruiters -- that's a completely different business.
Many consulting businesses are very small -- 1-4 owner/employees,
organized as a sole proprietorship, partnership, or S-corporation. In
these cases, wage-hour laws don't apply. At least they don't here in
> consultants to clients and charging an overhead fee. The consultants
> usually 1099, therefore hourly and would have to be paid overtime at
> and a half. That was the whole problem behind AB60 - that it only
> for salaried workers to be exempt - not hourly workers.
If the consultants aren't owners of the company, but ordinary employees
(W-2), then I suppose they'd have to be paid overtime. But not if
1099 workers are independent contractors, not employees. The consulting
company is acting as their _agent_, not their employer. Here in
Colorado, neither the agent of an independent contractor nor the client
has to pay time and a half (I suppose it could happen if the client and
agent both agreed to those contract terms, but I imagine that would be
very, very rare).
California's different (a.k.a. weird), but I can't imagine the W-2 vs.
1099 distinction isn't the same there as here.
Richard G. Combs
Senior Technical Writer
richardDOTcombs AT polycomDOTcom
rgcombs AT gmailDOTcom
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