Category Archives: Employee Employer relationship

PPI Fear Factor: Does Fear have it’s Hand on Your Throat???

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COO at Aladay LLC
Organic Farmer, Property Preservation Specialist and Custom Glass & Wood Worker. Blogger extraordinaire...
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Does a National Order Mill use Fear to Control Your Company?

 

Are you a victim of PPI Bullying?
Are you a victim of PPI Bullying?

 

One of the issues that continually rings the bell in the Property Preservation Industry. FEAR. Fear to ask for the money one is owed. Fear to speak openly and honestly without reprisal. Fear to attempt to negotiate. Fear of losing workloads. Fear to act as a business and not some terrified cowering in the corner employee.

I don’t normally speak of consultations but the trend in subject matter lately has  become very disturbing. I’m not the only one hearing this either. Many of my fellow consultants have been saying they are hearing the same thing from their clients. That members of the National Association of Mortgage Field Services intimidate their Contractors into a state of fear that they don’t know what to do or how to proceed when it comes to issues of nonpayment. I’m dumbfounded that BOTG’s are afraid to exercise their First Amendment Right to free speech.

I don’t know about you or how you may chose to operate your business. However, with today being Vetarans Day I’m reminded of all the lives that have been laid down so I can tell my government what I think. Yes folks I can say go screw you Mr. President and not have to worry about being shot…People have died so I can say just that if I so desire.

People have died for everyone in this country to speak their mind without reprisal and yet we have a bunch of sissy cowards afraid to ask for the monies they EARNED. Monies they have a right to. Monies that could make a mortgage payment or to purchase little Johnny and Sally new shoes this year, or buy a new jacket because the one Little Johnny is wearing the sleeves go half way up his arms because it is two years old.

I cannot believe the level of “employeeship” in the PP, or what I call “Emptractors”…

Look very few people are of the nature that they enjoy conflict. But when time and time again one is confronted with the school yard bully. The results are always the same Bully takes your lunch money until the day comes and you are really hungry and you sock the bully in the mouth. Folks if you have not realized this scenario by now you do not belong in business. You belong in the unemployment line.

So let me ask all of you the same question. Are you working off an EIN number or your Social Security Number? If it is your SS number then may I suggest you file for unemployment. I say this with all due respect to those that have never organized their business structure in a manner that would require they write a check at the end of the week to themselves. Yes I’m calling on everyone in the PPI working off their SS number to file for unemployment.

If only 5 people would do that after they have been reduced to cowering with your new found disease broke back status“* after going to the well one to many times and fronted all the resources to complete work orders only to find out at the end of 90 days you were paying more to complete jobs than you were being paid…yes you, you know exactly who I’m talking about. File unemployment and give the unemployment office your contract to review…then please come back and share your story…I’ betting right now that there is at least one person in every state that has an issue of asking a tough question and your work load has stopped. What to you think the IRS would do if there were 50 UEID filings for unemployment within the same industry claiming they were an employee vs an Independent Contractor?

Or how about even reporting these nonpayment offenses to your local Department of Labor. You did the work, you’re entitled to your money.

Here is the bottom line folks, until everyone stops this cowering in the corner like they are trying to avoid the wrath of the wicked step-mother (sorry step-mothers…you’re not all bad)…yes until the BOTG Contractors in the PPI have the guts to ask for what is theirs the powers to be will continue to steal for you.

One of the issues I have seen and heard via consultations is the instability of internal operations due to high turnover rates on employee at the National Order Mills. This matter has caused a rift between our company and a client we’ve worked with for 5 years now. Because someone did not makes notes in our profile I had to have a conversation with the top dog of Vendor management. Our request because of the instability was that we have work order issued prior to having work completed as when employees leave a company we were finding they were not doing their job correctly and making the proper notes on work orders or in the profile jacket. You see once an employee leaves a company the record goes with them when they have not made written notations. Then you have no recourse when issues crop up on your money.

So when the issue came to a head the gentleman responded with this statement.

We have policies in place that 500 contractors abide by and make money at every month.

At first I didn’t give this statement much thought until I looked at something else the same client sent us…our scorecard stating we were ranked 450 out of 845 vendors. So this Vendor Management Person was bragging that out of their 845 vendors they were breaking 41% of them. I was flabbergasted!!!!! How can you brag about that?

However, that is the nature of the industry. Let’s be real folks. These companies are not taking a percentage of what they bill for these services you use all your resources on to complete. They remove a percent of WHAT they decide to pay you. Look businesses bill for services, businesses get everything in writing prior to commencing work. Employees get told what they will be paid and what they have to do to be paid X-amount of money.If you were punching the time clock and you only got paid for 35 hours when you worked 40 you and I both know you would be all over the boss and payroll people where you work. So why the scaredie cat syndrome in the PPI?? I just do not understand why the majority of BOTG’s are so afraid to stand up for themselves and ask for what they have coming.

Again I will encourage everyone that is owed monies to please take advantage of the Istar system that Foreclosurepedia has set up so this information can at least be tracked.As I’ve said before, there are probably 30,000 BOTG in the industry…when one of us individually says something they are “disgruntled” however, when 10,000 people from all over the country say the same thing….big difference folks.

I have to ask once again where are the organizations that claim to “advocate” for the Contractors? Why are they silent? What aren’t they standing up for the Contractors? Just what is it that the National Property Preservation Guild  doing that would say they are advocating? There hasn’t been an update on their website for a month. So what is they are doing? One would think that just stepping up to the plate would help attract membership. But then again when you’re Lost in the Land of Confusion  one tends to get complacent when their boat does not rock.

Remember when you signed your contracts, you remember the clause that stipulates;

You will agree not to be paid for the work you complete if we so decide to keep you’re hard earned money. You have no use for it. and We need it more than you do.

Oh that’s right there is no clause that states this…It is called Fraud in the Inducement.

The Time for Silence is OVER!!!! Speak up. Use the venues available to bring attention to these illegal activities going on in the PPI. Do interviews with media outlets, provide information with people and their blogs. The bottom line is this.Until you sock the bully in the mouth they will continue to take your lunch money…in this instance your mortgage payment..time to get the word out folks…

THE TIME OF SILENCE IS OVER
THE TIME OF SILENCE IS OVER

 

 

Written by: Aaron Aveiro

Opinions expressed are not necessarily those of Aladay LLC  Ownership.

“Broke Back Status” is when a National Order Mill breaks the back of a Boots on the Ground Contractor by not paying them the monies they have earned while completing services on behalf of said National Order Mill for the “Client”. Please note the difference between Status and Fever…..

In My Humble Opinion: You’re an Employee

Organics Admin
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Organics Admin

COO at Aladay LLC
Organic Farmer, Property Preservation Specialist and Custom Glass & Wood Worker. Blogger extraordinaire...
Organics Admin
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With the current judicial revelations in the Property Preservation Industry (PPI) I thought I would bring everyone up to date with the way the IRS determines an Employee VS and Independent Contractor

How will the scles balance?
How will the scles balance?

.

I am constantly asked;

“How can I be an employee when I am a business”? Excellent question. The answer is simple. Should the IRS determine that PPI Contractors are in fact employees your business license becomes moot for the purposes of the determination. Does this mean that you’re not a legitimate business? Of course not. It only means that for the period of time you had a working relationship with company “A” you were improperly classified and paid. If your business license and insurance are sufficient to satisfy your local laws then yes, you are a business.

Here how it works:

Company “A” hires/contracts with Company “B” . Both companies reach an agreement. However, this does mean….and I have spelled this out in our video series on understanding contracts…just because a contract is signed by two or more parties does not necessarily mean that the contract is valid or enforceable. So, to the layman, one an employee determination is made the contract with Company “A” is voided or at least for the determination, rendered moot. Your business license is not rendered moot just the contract with Company “A”.

The IRS formerly used what has become known as the “Twenty Factor” test. Under pressure from Congress and from representatives of labor and business, it has recently attempted to simplify and refine the test, consolidating the twenty factors into eleven main tests, and organizing them into three main groups: behavioral control, financial control, and the type of relationship of the parties. Those factors appear below, along with comments regarding each one (source: IRS Publication 15-A, 2010 Edition, page 6; available for downloading from http://www.irs.gov/pub/irs-pdf/p15a.pdf (PDF). Another good IRS resource for understanding the independent contractor tests is at http://www.irs.gov/businesses/small/article/0,,id=99921,00.html.

 

So here are the new IRS guidelines with commentary of course.

Behavioral control

 

Facts that show whether the business has a right to direct and control how the worker does the task for which the worker is hired include the type and degree of�

  1. Instructions the business gives the worker. An employee is generally subject to the business’ instructions about when, where, and how to work. All of the following are examples of types of instructions about how to do work:
    1. When and where to do the work

There can be no doubt about this, some companies have gone as far as to require photos of the dump??

  1. What tools or equipment to use

For almost every service, Types of equipment that is acceptable and unacceptable

  1. What workers to hire or to assist with the work

This phrase “pass a back ground check” dictates to your company or yourself who you can hire

  1. Where to purchase supplies and services

Locks/winterization stickers and commode wraps/insurance

  1. What work must be performed by a specified individual

Again background ckeck

  1. What order or sequence to follow

There is a very specific order that work is to be done from the time a Property is received until the property is invoiced and removed from inventory.

 

The amount of instruction needed varies among different jobs. Even if no instructions are given, sufficient behavioral control may exist if the employer has the right to control how the work results are achieved. A business may lack the knowledge to instruct some highly specialized professionals; in other cases, the task may require little or no instruction. The key consideration is whether the business has retained the right to control the details of a worker’s performance or instead has given up that right.

  1. Training the business gives the worker. An employee may be trained to perform services in a particular manner. Independent contractors ordinarily use their own methods.

Online training you’re required to take, in field training when QC or other inspectors and instructors are in your coverage area, Webinars your required to participate in.

 

So Far things appear to be leaning towards the people and companies that are “classified” as Independent Contractors may actually be employees.

Now let us examine the financial aspects of the Independent Contractor. Next we examine the Financial aspects of and Independent Contractor and in reality the financial aspects of a business in general

 

Financial control

 

Facts that show whether the business has a right to control the business aspects of the worker’s job include:

  1. The extent to which the worker has unreimbursed business expenses. Independent contractors are more likely to have unreimbursed expenses than are employees. Fixed ongoing costs that are incurred regardless of whether work is currently being performed are especially important. However, employees may also incur unreimbursed expenses in connection with the services they perform for their business.

Can a trip fee be classified as a reimbursed expense? It is to help assist with your costs…fuel…for a trip to a property.

  1. The extent of the worker’s investment. An employee usually has no investment in the work other than his or her own time. An independent contractor often has a significant investment in the facilities he or she uses in performing services for someone else. However, a significant investment is not necessary for independent contractor status.

No one can disagree, a Boots on the Ground Contractors in the PPI has a significant financial investment

  1. The extent to which the worker makes services available to the relevant market. An independent contractor is generally free to seek out business opportunities. Independent contractors often advertise, maintain a visible business location, and are available to work in the relevant market.

Because of the methods used to recruit “new” talent in the PPI the people put in play are not business oriented and do not understand the value of “diversifying” adding other clients/customers and work exclusively for one company until they have been burned out or have been placed unfeasible financial position

  1. How the business pays the worker. An employee is generally guaranteed a regular wage amount for an hourly, weekly, or other period of time. This usually indicates that a worker is an employee, even when the wage or salary is supplemented by a commission. An independent contractor is usually paid by a flat fee for the job. However, it is common in some professions, such as law, to pay independent contractors hourly.

This is pretty self explanatory however, Independent Contractors also bill based on their business model and COGS, or what is known as Cost of Goods Sold.

  1. The extent to which the worker can realize a profit or loss. Since an employer usually provides employees a workplace, tools, materials, equipment, and supplies needed for the work, and generally pays the costs of doing business, employees do not have an opportunity to make a profit or loss. An independent contractor can make a profit or loss.

Depending on who you talk too. Let’s be real for one minute. There has to be SOME profitable companies in the PPI or no work would being completed. However, the vast majority of companies claim they operate at a break even or a deficit status. Again, I cannot emphasize enough learn how to perform a Break Even Analysis on your products and services.

 

Well that section was not quite as brutal for the National Asset Management Order Mills…

Now to examine the Relationship between you and Company “A”

Type of relationship

 

Facts that show the parties’ type of relationship include:

  1. Written contracts describing the relationship the parties intended to create. This is probably the least important of the criteria, since what really matters is the nature of the underlying work relationship, not what the parties choose to call it. However, in close cases, the written contract can make a difference.

This is extremely significant…I stated this above, just because a contract has been sign does not necessarily mean it is enforceable.

  1. Whether the business provides the worker with employee-type benefits, such as insurance, a pension plan, vacation pay, or sick pay. The power to grant benefits carries with it the power to take them away, which is a power generally exercised by employers over employees. A true independent contractor will finance his or her own benefits out of the overall profits of the enterprise.

Well we all know about this, most contractors are not generating enough revenue to provide insurance for themselves and their families, not even with “Obamacare

10. The permanency of the relationship. If the company engages a worker with the expectation that the relationship will continue indefinitely, rather than for a specific project or period, this is generally considered evidence that the intent was to create an employer-employee relationship.

Consider the aspect being threatened with “deactivation” when you will not agree to performing services at a fee that is unacceptable, or even being threatened with same said for having the nerve to make a stink about your accounts receivables, talking to the press

11. The extent to which services performed by the worker are a key aspect of the regular business of the company. If a worker provides services that are a key aspect of the company’s regular business activity, it is more likely that the company will have the right to direct and control his or her activities. For example, if a law firm hires an attorney, it is likely that it will present the attorney’s work as its own and would have the right to control or direct that work. This would indicate an employer-employee relationship.

Contractors routinely supply EVERYTHING another company assumes credit for. ‘Nough said.

So there is a closer look at this issue. I’m not going to make bold claims here you can examine the information yourself. However, In My Humble Opinion, Boots on the Ground Contractors in the PPI have never been Independent Contractors…

That’s My Humble Opinion and I’m sticking to it!!!!!!

 

Until Next Time

Happy Gardening

 

Opinions expressed are not necessarily those of Aladay LLC ownership.

Written by: Aaron Aveiro