USMCAirWinger
Well-known member
- Joined
- Jan 10, 2004
- Posts
- 228
I saw this in another website. I hope this dude doesn't go after me with his legal knowledge because of copying this without properly citing him.
CFI's can't be contractors because: 4/2/2004 at 06:10:01
Don’t be scammed by another shady operator. If you work as a CFI, you should be paid for your efforts. After all, the school is well paid, why should you work for free? Negotiate a fair pay rate and working conditions for yourself, and get it in writing. It is required that you have a written agreement in most states. US DOL FSLA: Employer to furnish employee certain information. Each employer shall: (1) Advise his employees in writing, at the time of hiring, of the rate of remuneration, hours of employment and wage payment schedules, and (2) make available to his employees, either in writing or through a posted notice maintained in a place accessible to his employees, any employment practices and policies or change therein with regard to wages, vacation pay, sick leave, health and welfare benefits and comparable matters.
If you like answering phones and sweeping floors for free in between students, think about this: If you slip on that freshly washed floor while running to answer the phone (to book your next student), you are NOT covered by workmen’s comp.(unless you have your own policy, but you couldn’t get, let alone afford one). You, the starving CFI, giving away your labor, are now facing hospitalization, medical bills, and loss of income, while you get replaced by another “independent contractor”. Also, if you are paid by the hour for CFI work, you cannot legally volunteer your time to any other aspect of the business. No phones, no fueling, sweeping, washing planes, etc. For example, a person who is an employee cannot "volunteer" his/her services to the employer to perform the same type service performed as an employee. Of course, individuals may volunteer or donate their services to religious, public service, and non-profit organizations, without contemplation of pay, and not be considered employees of such organization. You can’t work for free, because we abolished slavery back in 1863.
To be an “independent” contractor: most states regulate business on public use airports. You may need a contract with your state to provide any commercial services on an airport. You must have: an office, workmen's comp, liability insurance, a tax ID number to resell your services to your contracted client. You may be liable for state sales taxes on your services. State statutes provide penalties for failing to engage in a contract where required by law. Simply accepting a 1099 does not make you a contractor, but accepting it and claiming to be independent without following the rules will subject you to prosecution from state aviation and tax bureaus, and federal tax authorities for non-payment of estimated income taxes, medicare, and social security payments.
The DOL and IRS do not consider the CFI to be a professional classification. You are not a teacher, you are a machine operator. That means you cannot be classified in a salary category with exemption from overtime. You can’t be classed as a teacher because you are not recognized by a professional degree, like a professor with a PhD would. Your FAA certs do not count, because the are certificates, not licenses. And the work you perform is not primarily abstract, requiring higher thought. It is instruction in how to operate a machine, no different from showing someone how to operate a fryolator at McDonald’s. The only possible exception would be teaching ground school ONLY, in a college environment, with your bachelor’s degree, and a state teaching certificate in your hand.
The Fair Labor Standards Act classifies cfi’s as: “flyers”, and along with the other employees of a flight school, are considered as hourly employees subject to the provisions of the FSLA, are not exempt from overtime and are therefore entitled to the full protection of the Act.
Read on for the straight story right from the US Department of Labor. IRS law also follows these judgements. It is impossible for any CFI to be seriously considered to be independent unless: he provides the plane, leases office space, telephones, has his own insurance, tax status, and operates his business as a stand-alone entity. Is this what you did?
An employment relationship under the FLSA must be distinguished from a strictly contractual one. In the application of the FLSA an employee, as distinguished from a person who is engaged in a business of his or her own, is one who, as a matter of economic reality, follows the usual path of an employee and is dependent on the business which he or she serves. The employer-employee relationship under the FLSA is tested by "economic reality" rather than "technical concepts." It is not determined by the common law standards relating to master and servant.
The U. S. Supreme Court has on a number of occasions indicated that there is no single rule or test for determining whether an individual is an independent contractor or an employee for purposes of the FLSA. The Court has held that it is the total activity or situation which controls. Among the factors which the Court has considered significant are:
1) The extent to which the services rendered are an integral part of the principal's business. (NO CFI MEANS NO STUDENTS FOR THE BUSINESS< THEREFORE< HE’S INTEGRAL)
2) The permanency of the relationship. (CFI’S PRACTICALLY LIVE AT THE AIRPORT)
3) The amount of the alleged contractor's investment in facilities and equipment. (CFI HAS ZERO INVESTMENT IN HIS WORKPLACE, OK, MAYBE THE HEADSET COUNTS)
4) The nature and degree of control by the principal. (BOSS SAYS I’LL REPLACE YOU ANYTIME FOR ANY REASON)
5) The alleged contractor's opportunities for profit and loss. (CFI TAKES WHAT LITTLE MONEY THE BOSS GIVES HIM, OR HAS TO HIT THE STREET)
6) The amount of initiative, judgment, or foresight in open market competition with others required for the success of the claimed independent contractor. (WHAT COMPETITION?)
7) The degree of independent business organization and operation. (THE CFI HAS NO BUSINESS ORGANIZATION> HE ACCEPTS AN HOURLY PAY FOR HIS WORK)
There are certain factors which are immaterial in determining whether there is an employment relationship. Such facts as the place where work is performed, the absence of a formal employment agreement, or whether an alleged independent contractor is licensed by State/local government are not considered to have a bearing on determinations as to whether there is an employment relationship. Additionally, the Supreme Court has held that the time or mode of pay does not control the determination of employee status.
Requirements
When it has been determined that an employer-employee relationship does exist, and the employee is engaged in work that is subject to the Act, it is required that the employee be paid at least the Federal minimum wage, -- $5.15 an hour effective 9/1/97 -- and in most cases time and one-half his/her regular rate of pay for all hours worked in excess of 40 per week. The Act also has child labor provisions which regulate the employment of minors under the age of eighteen, as well as record keeping requirements.
Typical Problems
(1) One of the most common problems is in the construction industry where contractors hire so-called independent contractors, who in reality should be considered employees because they do not meet the tests for independence, as stated above. A situation involving a person volunteering his or her services for another may also result in an employment relationship. For example, a person who is an employee cannot "volunteer" his/her services to the employer to perform the same type service performed as an employee. Of course, individuals may volunteer or donate their services to religious, public service, and non-profit organizations, without contemplation of pay, and not be considered employees of such organization.
Where To Obtain Additional Information
For additional information, visit our Wage-Hour website: http://www.wagehour.dol.gov and/or call our Wage-Hour toll-free information and helpline, available 8am to 5pm in your time zone, 1-866-4USWAGE (1-866-487-9243).
CFI's can't be contractors because: 4/2/2004 at 06:10:01
Don’t be scammed by another shady operator. If you work as a CFI, you should be paid for your efforts. After all, the school is well paid, why should you work for free? Negotiate a fair pay rate and working conditions for yourself, and get it in writing. It is required that you have a written agreement in most states. US DOL FSLA: Employer to furnish employee certain information. Each employer shall: (1) Advise his employees in writing, at the time of hiring, of the rate of remuneration, hours of employment and wage payment schedules, and (2) make available to his employees, either in writing or through a posted notice maintained in a place accessible to his employees, any employment practices and policies or change therein with regard to wages, vacation pay, sick leave, health and welfare benefits and comparable matters.
If you like answering phones and sweeping floors for free in between students, think about this: If you slip on that freshly washed floor while running to answer the phone (to book your next student), you are NOT covered by workmen’s comp.(unless you have your own policy, but you couldn’t get, let alone afford one). You, the starving CFI, giving away your labor, are now facing hospitalization, medical bills, and loss of income, while you get replaced by another “independent contractor”. Also, if you are paid by the hour for CFI work, you cannot legally volunteer your time to any other aspect of the business. No phones, no fueling, sweeping, washing planes, etc. For example, a person who is an employee cannot "volunteer" his/her services to the employer to perform the same type service performed as an employee. Of course, individuals may volunteer or donate their services to religious, public service, and non-profit organizations, without contemplation of pay, and not be considered employees of such organization. You can’t work for free, because we abolished slavery back in 1863.
To be an “independent” contractor: most states regulate business on public use airports. You may need a contract with your state to provide any commercial services on an airport. You must have: an office, workmen's comp, liability insurance, a tax ID number to resell your services to your contracted client. You may be liable for state sales taxes on your services. State statutes provide penalties for failing to engage in a contract where required by law. Simply accepting a 1099 does not make you a contractor, but accepting it and claiming to be independent without following the rules will subject you to prosecution from state aviation and tax bureaus, and federal tax authorities for non-payment of estimated income taxes, medicare, and social security payments.
The DOL and IRS do not consider the CFI to be a professional classification. You are not a teacher, you are a machine operator. That means you cannot be classified in a salary category with exemption from overtime. You can’t be classed as a teacher because you are not recognized by a professional degree, like a professor with a PhD would. Your FAA certs do not count, because the are certificates, not licenses. And the work you perform is not primarily abstract, requiring higher thought. It is instruction in how to operate a machine, no different from showing someone how to operate a fryolator at McDonald’s. The only possible exception would be teaching ground school ONLY, in a college environment, with your bachelor’s degree, and a state teaching certificate in your hand.
The Fair Labor Standards Act classifies cfi’s as: “flyers”, and along with the other employees of a flight school, are considered as hourly employees subject to the provisions of the FSLA, are not exempt from overtime and are therefore entitled to the full protection of the Act.
Read on for the straight story right from the US Department of Labor. IRS law also follows these judgements. It is impossible for any CFI to be seriously considered to be independent unless: he provides the plane, leases office space, telephones, has his own insurance, tax status, and operates his business as a stand-alone entity. Is this what you did?
An employment relationship under the FLSA must be distinguished from a strictly contractual one. In the application of the FLSA an employee, as distinguished from a person who is engaged in a business of his or her own, is one who, as a matter of economic reality, follows the usual path of an employee and is dependent on the business which he or she serves. The employer-employee relationship under the FLSA is tested by "economic reality" rather than "technical concepts." It is not determined by the common law standards relating to master and servant.
The U. S. Supreme Court has on a number of occasions indicated that there is no single rule or test for determining whether an individual is an independent contractor or an employee for purposes of the FLSA. The Court has held that it is the total activity or situation which controls. Among the factors which the Court has considered significant are:
1) The extent to which the services rendered are an integral part of the principal's business. (NO CFI MEANS NO STUDENTS FOR THE BUSINESS< THEREFORE< HE’S INTEGRAL)
2) The permanency of the relationship. (CFI’S PRACTICALLY LIVE AT THE AIRPORT)
3) The amount of the alleged contractor's investment in facilities and equipment. (CFI HAS ZERO INVESTMENT IN HIS WORKPLACE, OK, MAYBE THE HEADSET COUNTS)
4) The nature and degree of control by the principal. (BOSS SAYS I’LL REPLACE YOU ANYTIME FOR ANY REASON)
5) The alleged contractor's opportunities for profit and loss. (CFI TAKES WHAT LITTLE MONEY THE BOSS GIVES HIM, OR HAS TO HIT THE STREET)
6) The amount of initiative, judgment, or foresight in open market competition with others required for the success of the claimed independent contractor. (WHAT COMPETITION?)
7) The degree of independent business organization and operation. (THE CFI HAS NO BUSINESS ORGANIZATION> HE ACCEPTS AN HOURLY PAY FOR HIS WORK)
There are certain factors which are immaterial in determining whether there is an employment relationship. Such facts as the place where work is performed, the absence of a formal employment agreement, or whether an alleged independent contractor is licensed by State/local government are not considered to have a bearing on determinations as to whether there is an employment relationship. Additionally, the Supreme Court has held that the time or mode of pay does not control the determination of employee status.
Requirements
When it has been determined that an employer-employee relationship does exist, and the employee is engaged in work that is subject to the Act, it is required that the employee be paid at least the Federal minimum wage, -- $5.15 an hour effective 9/1/97 -- and in most cases time and one-half his/her regular rate of pay for all hours worked in excess of 40 per week. The Act also has child labor provisions which regulate the employment of minors under the age of eighteen, as well as record keeping requirements.
Typical Problems
(1) One of the most common problems is in the construction industry where contractors hire so-called independent contractors, who in reality should be considered employees because they do not meet the tests for independence, as stated above. A situation involving a person volunteering his or her services for another may also result in an employment relationship. For example, a person who is an employee cannot "volunteer" his/her services to the employer to perform the same type service performed as an employee. Of course, individuals may volunteer or donate their services to religious, public service, and non-profit organizations, without contemplation of pay, and not be considered employees of such organization.
Where To Obtain Additional Information
For additional information, visit our Wage-Hour website: http://www.wagehour.dol.gov and/or call our Wage-Hour toll-free information and helpline, available 8am to 5pm in your time zone, 1-866-4USWAGE (1-866-487-9243).
