Is this law true? (Contractors)

Repo Man

So I've heard management at my work claiming that a lot of people will be going from contract to perm because of a law that states a company has to make a decision on a contractor within 1 year of employment. I've never heard of this and have seen job posting that specifically state 12+ and 18+ month duration contracts. Anyone have info on this? And if it varies by state I'm in Massachusetts.

powerfool

Mass has a lot of weird stuff. I can't see how that sort of law could even be enforced if it were passed. I mean, you simply hire a company to provide a service for however long you wish... that company hires the employee and has him/her perform the service. Employee is a permanent employee (as in W-2) of the service organization...

Many law are absolutely ridiculous. If that law is valid, even if just in Mass, I am sure the unintended consequences are far worse than leaving the situation alone.

kevozz

It's one way for the state to collect more taxes. It eliminates many of the tax deductions that a contractor with their own company could take. Might be a benefit to contractors using a recruiting company.

Devilsbane

I've never heard of this law, but I do know of companies that have this as their policy.

phantasm

I've never that. In fact, I was a contractor for 18 months before I went perm. Another individual there was a contractor for 4 yrs before he went perm.

Forsaken_GA

Employment laws are usually the province of a state, however, contracts are contracts. The state doesn't usually get involved in contract disputes until one party or the other has cause to file a suit for breach, and then they pretty much determine the legality of the terms to decide whether or not the contract was legal in the first place. I'd be surprised if the state was willing to put such a weird law on the books that screwed only with employment contracts.

If you're concerned about it, spend some cash and consult with an attorney in your state. I always take anything that management says with a grain of salt, especially when it comes to legal issues. If your company is big enough to have a general counsel, he/she would be the person to clarify this with.

Zartanasaurus

This sounds like the type of law a state like Massachusetts would try to pass, but it seems untrue to me. Google wasn't able to find anything either.

networker050184

Zartanasaurus wrote: »

Google wasn't able to find anything either.

If google can't find it then it isn't true.