I am refering to this thread:

http://www.webhostingtalk.com/showthread.php?s=&threadid=194257

Here I see that he/she is looking for a person which I think has to be very skilled at linux to do this job (certified)

the add also states that this person has to work for 7 days and 8 hours per day for $100-$250 a month.

some simple calculation learns me that this job pays (per 30 days):

with $100 a month: $0.41 p/h
with $250 a month: $1.04 p/h

Now I am very curious if that is legal in the USA (or anywhere else) as I am sure that if I would offer this kind of salary and workload in Holland, I will have to face long hours in court explaining why I did this (just working 7 days per week is illegal here)

Not meaning to trash his hopes to find people for low cost but threads like these makes me wonder if this is legal.

Thank you

That's actually a very interesting question, I look forward to some answers :D

I think you are confusing "contracted" with "salary". As this is a contract position the Company can pay whatever they want. This is legal in most Countries.

I could see someone replying to the thread mentioned "if" it was just for eMail Support. I think the Company is burning itself though, as they will not get a dependable person for the money stated. At least, IMHO, not from a G7 Country anyway.

No it's not legal.

Originally posted by Website Rob
I think you are confusing "contracted" with "salary". As this is a contract position the Company can pay whatever they want. This is legal in most Countries. In the US, though, while many wage and hour requirements wouldn't apply when a position is filled by an independant contractor I'd question whether the job as described could legally be handled that way.

Generally the contractor would have to have pretty much full control over the work hours and methods -- in this case the hours are specific and complete control over how the job is done is in the hands of the company. I wouldn't see how this could be anything but an employer/employee relationship.

But I am, of course, Not A Lawyer.

This type of position is not listed as an exemption at the USDOL, thus it is illegal.

There are only exemptions of overtime based on these types of positions and only under the following requirements.

(17)

any employee who is a computer systems analyst, computer programmer, software engineer, or other similarly skilled worker, whose primary duty is -

(A)

the application of systems analysis techniques and procedures, including consulting with users, to determine hardware, software, or system functional specifications;

(B)

the design, development, documentation, analysis, creation, testing, or modification of computer systems or programs, including prototypes, based on and related to user or system design specifications;

(C)

the design, documentation, testing, creation, or modification of computer programs related to machine operating systems; or

(D)

a combination of duties described in subparagraphs (A), (B), and (C) the performance of which requires the same level of skills, and who, in the case of an employee who is compensated on an hourly basis, is compensated at a rate of not less than $27.63 an hour.

Coach, you are missing something though.

If this was done as sub-contracting, technically he wouldn't be a employee.

I was wondering about that as well. My train of thought was a bit different though: "Only on the internet will you find someone to work for $1 per hour."

Originally posted by Sheps
Coach, you are missing something though.

If this was done as sub-contracting, technically he wouldn't be a employee. Although the info posted by Coach is good info the crux of the matter would be: is it an employer/employee relationship. In this case, no Taxes, Pension Plan benefits or Workmens Comp is being paid, therefore I cannot see it meeting the requirements.

compensated at a rate of not less than $27.63 an hour

That's one hell'va minimum wage. ;)

I don't know if you were agreeing with me or not, but if you are sub contracting, you as the person contracting the other person to do the work, basically put it in a one lump sum, and it is the other person's job to sort out Workers Comp, UI, and Pension. That is the way I understand it from being brought up around jobsites and stuff.

I was agreeing with you.

I've been sub-contracting for many years and know how it works in Canada. The situation described in the first post would not be considered an employer/employee relationship. If a sub-contractor wants to work for peanuts, that is their prerogative.

nevermind...

This sort of thing can be subbed. Presumably, the "candidate" would sort of be on call. In other words, not working all the time, but only when there's a problem.

Naturally, if there are problems all the time, the effective rate of pay would suck. If you just get up once or twice a week to fix a problem...well, that would suck too, wouldn't it? ;) No wonder this guy keeps getting "burned!"

The difference with this case is that it is not based on a "per job" basis, but on a hourly basis because of set needs of a time schedule, as per the linked thread.

Thus the thread starter would not be able offer those types of wages unless outsourcing to a company that serviced other clients as well here in the US which did pay the employees minimum wage, or specified that the contracted labor could only be performed by someone outside the US who would not be affected by current labor laws here. However, the thread starter is also looking for a dedicated tech for this position due to the response time requirement of 30 minutes.

It is true that a self-employeed person does not have to pay himself minimum wage. However, if these labor practices are indeed allowed, then that is one glaring loophole. If it were as simple as that though, I don't think as many US companies would outsource.

I'll contact the DOL tomorrow morning and find out their take on it.

I contacted the Department of Labor office out there in California just to get clarification on this and as long as you are setting specific hours, regardless of whether you are working from home or not, then the person working for a company would be considered an "employee" under federal guidelines.

To define an idependant contractor, the person would be setting their own schedule for such a job, if not setting their own schedule, then the person setting the requirements for the position would still be subject to minimum wage guidelines.

In canada, you can set in your contract for sub-contactors, that you have to work a minimum of such and such hours. Depending on it if is a union job or not, you also have to follow union guildlines(I made a killing this summer, because I did a union job)

I dunno though, it really depends on where they are located and what laws govern the area.

Along the same lines, I understand the U.S. has a problem in this area (and some upcoming law changes) with regard to outsourcing. Seems to be getting popular to hire consultants/employees from other Countries -- namely India & Pakastan -- at much lower rates.

IBM is trying to do this and smaller compaines are following suit. As this is creating a noticable increase in the U.S. Unemployment rate, the Goverment is enacting (or discussing, anyway) new laws to prevent this.

No ripples in Canada on this yet, but I don't image Canadian companies will be far behind.