For example, if an employee was promised a 30% bonus and an income of $10,000 was earned for the body shop on the basis of jobs, that the employee had completed in a given month, and that the employee had paid US$2,000 for the specified hours that were worked that month, the employee would receive a bonus of $1,000 ($10,000 multiplied by 30% less than $2,000). The employee would receive the $1,000 bonus $US in addition to the $2,000 earned in wages for this month. If the employee was less productive and produced only $5,000 in revenue for the body shop, they would receive only salaries and no bonuses would be owed. Thus, a minimum wage would be guaranteed to the worker on the basis of hours worked, but its actual production would be the main factor in the amount of the worker earned. The result would be closer coordination between the interests of workers and owners, without the risks associated with qualifying workers as self-employed contractors. Being an independent contractor can be an advantage for a worker: some workers like to be independent contractors because they are their own boss and they have the opportunity to earn more money than employees. Independent contractors work every hour they want, hiring other workers to help them finish jobs, have the right to refuse repairs they don`t like and can work for more than one company. Although independent contractors do not receive paid overtime, do not receive paid benefits and pay their own taxes and allowances, they often earn much more than workers, especially if they work effectively and hire the right workers. The main drawback of an independent contractor is the economic risk of running one`s own business and the loss of legal protection afforded to workers. Consult a lawyer to stay out of trouble: it is always a good idea to talk to a lawyer to ensure that workers are not wrongly classified as self-employed contractors and that employees who are employed have a compensation structure and working conditions in accordance with government and federal labour laws. It is always best to seek help in the planning phase or before a problem, but it is never too late to try to address employment and independent contractors issues. Martin Zurada regularly advises and negotiates on behalf of California auto garages, including independent contractors and employment issues. Contact him at:Zurada Law Group785 Market Street, 16th FloorSan Francisco, CA 94103 (415) 637-8483www.SFLawyer360.comm.zurada@sflawyer360.comThis product provides only general legal information, but no legal advice.

You should consult a lawyer who will legally advise you by applying your state`s specific laws to your specific real circumstances. The recruitment of self-employed contractors is not without risk: the simple transformation of workers into independent contractors or the indiscriminate hiring of independent contractors can be problematic. Independent contractors working for a body shop may initiate a government or federal investigation or audit. In addition, self-employed contractors who have been dismissed may take legal action to argue that they were in fact workers wrongly regarded as self-employed contractors and that they were seeking damages for not paying the minimum wage and overtime, as well as for not providing breaks and/or food breaks. If administrative or civil proceedings prove that the qualified self-employed contractor was indeed an employee, the body shop will suffer significant losses in the form of taxes, penalties, unpaid wages, interest and legal fees. Auto bodywork workers are considered employees: the multifactorial test is whether the worker manages his own trade from a functional, economic and formal point of view or only as a small cog in the operation of a body shop