Most technicians size up a job offer by looking at the following items: rate, location, start date, and hours. Those are the right issues to evaluate, but a good working relationship is governed by more than that, including how overtime is calculated, who your legal employer actually is, what you can expect during screening, and what happens if the project ends early. Those are the details that decide how the job actually goes.
As General Counsel of FlexTrades, I spend most of my time on the employer side of these arrangements, but here is what I would want a technician to look at, no matter which employer is making the offer.
Know Who Actually Employs You
Start with the most basic question: are you a W-2 employee or a 1099 independent contractor?
This is not a formality. As a W-2 employee, you generally have overtime protections under federal and state wage laws, workers’ compensation coverage if you are hurt on the job, potential eligibility for unemployment benefits if the assignment ends, and an employer withholding taxes and paying the employer share of Social Security and Medicare taxes. As a 1099 contractor, you have none of that by default, and the self-employment tax is yours to pay.
Some companies classify workers as contractors who, under the law, should be employees. A higher rate on a 1099 arrangement can be worth less than a lower one on a W-2 once you factor in coverage and the taxes you must pay yourself. Ask the question about employment status directly and get the answer in writing.
If you are working through a staffing company, there is a second question worth asking: when something goes wrong on site, who do you call? Well-run organizations answer that before your first shift.
The Rate Is Not the Total Picture
Overtime is where offers diverge most. Under federal law, most covered, nonexempt employees are entitled to at least one and a half times their regular rate for any hours over forty in a workweek. Several states add daily overtime rules, and some require meal and rest breaks that federal rules do not.
A few things worth confirming before you accept:
- Guaranteed hours. If the offer advertises fifty hours a week, is that guaranteed or projected? What happens in a short week?
- Travel time. Which portions of travel are paid, and at what rate?
- Per diem. Is it taxable? Per diem on an assignment realistically expected from the outset to run longer than one year is generally taxable because the assignment is considered indefinite for federal tax purposes. That is an IRS rule, not an employer preference.
- Lodging. Is it arranged and paid for you, reimbursed after the fact, or entirely on you to coordinate?
- An early end. If the client cancels the project, what are you owed and how quickly are you paid? Final paycheck deadlines are set by state law and vary widely.
You Have Rights in the Screening Process
Employment background checks obtained through a third-party consumer reporting company are governed by the Fair Credit Reporting Act. Before a check is run, you are entitled to a clear, standalone written disclosure, and you must give authorization. If something in that background check is going to cost you the job, the employer must send you a pre-adverse action notice with a copy of the report and a summary of your rights, and give you an opportunity to dispute an error before the decision is final.
Reports do contain errors. If you receive that notice, do not treat it as the end of the conversation.
Drug testing rules now vary considerably by state, particularly for marijuana. Federally regulated safety-sensitive roles follow their own program regardless of what state law says. Ask the employer what rules apply to the role you are pursuing.
Two Employers, One Set of Safety Rights
You can report a hazard without fear of retaliation. That protection does not weaken because you are a contract or contingent worker. Where a staffing company places you at a host employer’s site, both companies generally have responsibilities for your safety.
Know who your on-site supervisor is, who your employer contact is, and how to reach both before your first shift.
The Bottom Line
None of this is about distrust. Most employers in this industry are trying to get it right, and the skilled trades play a critical role in today’s job market. That is worth protecting.
Ask the questions before you sign rather than after. A company that answers them plainly and puts the answers in writing is telling you something useful about how it does business.
At FlexTrades, our Technicians are W-2 employees. We review site safety expectations with our clients before a placement begins, and we work to have these answers ready at the offer stage.
Standard lawyer’s caveat: This is general information, not legal advice. For your specific situation, please consult your own counsel.
