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Badger Cab's Independent Contractors

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Badger Cab's Independent Contractors

Postby Huckleby » Sun Aug 14, 2011 3:10 pm

http://host.madison.com/wsj/business/ar ... 002e0.html

"With independent contractors, it’s kind of nice because they do feel like they’re working for themselves and you’re not Big Brother." Tom Melms, owner.

Right, I'm sure they love paying double social security taxes, having no unemployment insurance, no workers compensation or benefits.

America's vaunted Job Creators love turning employees into independent contractors. The feds have cracked down on this practice, for instance the employer can't require an i.c. to be at a particular location at set times. Apparently Badger Cab has slipped through the legal cracks.

Maybe there is another side to this story.
Huckleby
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Re: Badger Cab's Independent Contractors

Postby Dulouz » Mon Aug 22, 2011 4:46 pm

The other side to the story is that drivers who have correctedly realized that they do not qualify as ic's (i.e. no FEIN and they do not own their own equipment, nor can they offer their services to other cab company dispatch systems), have been "discouraged" from filing suit.

The drivers that make money don't report most of it, so the FICA isn't really an issue. Badger also benefits by not having to pay worker's comp even though their drivers receive it if they get injured (the other cab companies subsidize the benefit through their WC insurance).
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Re: Badger Cab's Independent Contractors

Postby Huckleby » Mon Aug 22, 2011 7:46 pm

Dulouz wrote: The drivers that make money don't report most of it, so the FICA isn't really an issue. Badger also benefits by not having to pay worker's comp even though their drivers receive it if they get injured (the other cab companies subsidize the benefit through their WC insurance).


you no paya FICA, you no collecta SS. Not a great deal in long run for drivers.

My first reaction is that this is sleazy, especially the freeloading on WC. Its ultimately coming out of somebody else's pocket.

I guess its a hard world out there, people are fighting to survive.
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