seeking labor/HR expert advice for an independent fed contractor

[Anonymous]

I have been working for Voice of America (under IBB/State Dept) for a few years as a POV (pay over voucher?) contractor. The service I work for have about 20 or so people like me. Our rates are hourly but we are paid by 'units' - one unit consists of four hours. IOW, if we work 5 or 6 or 7 hours we get paid for 2 units (8 hours), not 5 or 6 or 7 hours.

Now the service is telling us that starting Oct, we'll be paid by hours. So, in the previous scenario, we'd be paid for 5 or 6 or 7 hours, not 2 units.

To me, this move changes the fundamentals of my contract. Some of us do work full 8 hours days, but most are given assignments that can (must) be completed between 6 to 7 hours, and after the tasks are done we are free to split. So this change essentially reduces the value of our contracts, and I feel we are entitled for new contracts negotiation. However the first reaction I got was "it's all going to be the same." But seriously, are you kidding me? I'm looking at a income reduction of 30% and you're telling me everything is going to stay the same???

I spoke with a few other contractors and got mixed responses on what they'd do. But I feel strongly this is not a fair move, and I cannot stay two more hours due to other obligations. I thought about this over the weekend and I believe I have a strong case for a new contract (basically a higher rate to 'make up' for the reduced hours), but I want to hear what you experts think about this situation. Also, before I actually walk into the boss office, I'd like to map out a plan of actions if they reject my requests, and I really need some advice on that front.

Mucho Gracious!

[Anonymous]

Super Important Question #1: Do you actually currently have a written contract for employment with this contractor? My guess is "no"... but?

[Anonymous]

PP here... Super Important Question #2: Are you part of a union? (again, my guess is "no"...)

[Anonymous]

thanks pp.

Q1: yes (but the contract is between myself and VOA, not with another contractor company). it's year by year and was renewed a few months ago.

Q2: no.

[Anonymous]

OP- did you know you would be paid for 8 hours and not work 8 hours from the beginning? did the client tell you that from the beginning (and tell you in effect that your hourly rate was greater than what was stated in the contract? Is an hourly rate stated in the contract?

[Anonymous]

pp -

yes, in the current contract the pay is by 'unit' (defined as 4-hrs period), not by 'hour'. occasionally i came in for my coworkers for a couple of hours, and would charge/get paid for one unit.

IOW (my words ha-ha) the client purchases my service by units, not by hour, even though the rate is an hourly rate.

to your other question - i gotta check again but i don't think the rate is not stated in the contract.

[Anonymous]

oops, meant to say "i don't think the rate is stated in the contract."

[Anonymous]

7:45 here. If you are in the rare situation of having a written contract, then you need to look closely at the terms of that contract to see whether you have any bargaining power. There are a million caveats to this that I can't go into here, and I'd suggest you take your contract to a lawyer to get a specific opinion... because the terms of your contract are going to control. While there are some employment laws that will apply as well, generally speaking many employment laws are designed to cover the 90% of the population that works WITHOUT a contract. You'll need to see an attorney.

If your contract has a specific "term of employment", or covers a specific period (e.g., May 2008, through April 2009), you may have some bargaining room.

[Anonymous]

PP here again... if your current contract doesn't say anything about you being paid by units... I'd say I wouldn't be too hopeful. It sounds like you've benefitted from an unwritten rule for a number of years... but I'm not certain that requires the employer to keep paying you for time you're not working.

[Anonymous]

Each contract is different, but the guidelines follow the CFR and the contract policies. Are you aware that it can be terminated? Your units was changed most likely because it was not in the best interest of the government (and actually somewhat fraudulant) i.e., paying people for services not rendered which is why you are moving to hours. Remember this is public service.

[Anonymous]

pp -

The gov't purchases my services in four-hour blocks, and I perform and completes assignments, and the supervisors sign off on my invoices, then I get paid based on the invoices. Where's the fraud?

Maybe a bad analogy, but when you buy bulk from a warehouse retailer, you get a deal on the price but you also risk having left overs gone wasted. When you buy single items from CVS, you pay more per.

The gov't wanted to buy bulk and paid bulk price - having leftovers is not a fraud, but a reality of a business transaction.

[Anonymous]

I think what PP meant is that it's fraudulent for taxpayers to be footing bills that pay contractors for hours not worked. In almost all situations- this type of arrangement means the government overpays. if you work 1 hour- you get paid 4 hours (1 unit)- if you work 9 you get paid 12 hours (3 units). I would check your contract on the rate quoted.. but I do agree that this situation was to your benefit and this agency has finally moved away from unit pay to hourly for contractors as the commercial sector does. If you don't like your hourly rate (as opposed to the units where you made more for working less hours), you could look for work elsewhere. It's employment at will.

[Anonymous]

I am a contractor - and I am only allowed to bill what I actually work.

If I complete my work quicker than anticipated and I am done at 3PM and leave, I can not charge until 5PM because it was scheduled to take that amount of time.

It actually is fraud what you are doing - but if you want to think of yourself as Costco - go right ahead.

[Anonymous]

Anonymous wrote:...If you don't like your hourly rate (as opposed to the units where you made more for working less hours), you could look for work elsewhere. It's employment at will.

So based on your logic if people don't like what they're making they should just quit? What happened to the idea of negotiation for a raise before quitting? When did people stop doing that?

Oh btw it's a purchasing contract, not an employment contract.

[Anonymous]

Wow folks lighten up. It's NOT fraud as long as the agency KNOWS what the OP is doing, and agrees to it. You (and I) as John Q. Public may think its a crappy deal for the taxpayers, but its a deal.

OP, has VOA contracted to purchase X number of "units" from you? Or, if its a purchasing order, I'm guessing its something else?

In short, there are too many unknowns (what is the work actually for? what are the terms of the contract), and abherations (normally a purchasing contract would not entitle you to any employment/wage rights) to give you any kind of legitimate answer.

You need to contact a lawyer.

You may not have any employment leg to stand on... but you may have a breach of contract claim. Its just impossible to say without knowing more.