Legal Question in Employment Law in Pennsylvania

Rehiring laid off workers (from salary to contract)

I was just wondering... I was laid off, but now I may be hired back by the same company on a contract basis. I qualify for unemployment therefore I will not refuse work, but before the lay off I was a salaried part time worker with benefits (insurance, 2 sick days and 2 personal days). The company now wants to hire me back for the same position, but as a contract person without benefits. What do I need to know about this in terms of negotiating a new wage if hired back since the terms will be different. Can they legally lay me off from this position only to hired me back at a fraction of my paycheck and without benefits for the same job? If they offer me a substantially reduced wage, do I have to accept it (considering my unemployment)? Do I have a case to ask for a higher wage that covers the difference in benefits? Thank you.


Asked on 12/16/08, 3:37 pm

1 Answer from Attorneys
Roger Traversa Arjont Group (Law Office of Roger Traversa)

Re: Rehiring laid off workers (from salary to contract)

You asked about getting screwed by an employer trying to save a buck.

This isn't a cut and dried issue.

You do not have to accept any work offered and in fact an offer of contract work is often not an offer of work.

Unless the pay is acceptable to you then you are correct in refusing work. Often persons who find that their work has been contracted out should find that their contract rate should be calculated as their previous base pay plus amounts they deem appropriate.

For example, Joe works for XYZ Plumbing for $20/hr. This nets Joe $30/hour when benefits and other items are factored in. If Joe gets fired and then rehired as a contractor then Joe not only needs to recapture the base pay and benefits but also a margin that he deems appropriate for the risk of taking the work. Because Joe will be working on that contract he may miss out on other more lucrative contracts, and Joe needs to plan for the potential that the contract may stop at any time.

The employer cannot dispute an unemployment claim on the claim that it has offered contract work.

Or, depending on how abusive the company is, you could take the contract work, keep a diary of all working conditions (hours, control, etc.) and then two years later turn around and sue the company for its unlawful work practices.

Speak with an employment lawyer to discuss this matter more thoroughly.

Regards,

Roger

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Answered on 12/17/08, 3:06 pm


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