Qualified Remodeler Magazine

OCT 2015

Qualified Remodeler helps independent remodeling firms to survive, become more professional and more profitable by providing must-have business information, namely best business practices, new product information and timely design ideas.

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while being well intended, created an ex- pensive outcome. QR : Attorney Berenson makes reference to both a W-2-based employee and 1099, which we assume comes from independent con- tractor status. Are both compensation sys- tems in common use within the industry? DAVE: For many years remodelers/home improvement contractors treated their in- stallers and frequently their salespeople as protect contractors from getting tagged for misclassifcation. Among other things, indi- vidual states have enacted rules regarding the application of independent contractor status. I can think of no better example than the class action suit against Lowe's (see the next page) in the matter of employee misclassifcation in the state of California. Certainly they were advised by their at- torneys and tax experts, yet the record clearly indicates that many of their interac- tions with these independent contractors, independent contractors. Often the latter was with the "well intended" advice of their attor- ney and accountant. In almost all cases (as measured today) the manner in which this is accomplished adds up to "misclassifcation" by various government agencies. Don't be misled by information asserting that big companies get away with treating employees as independent contractors so your position is secure. In the past 18 months nu- merous large companies lost "class action suits," among these an action in the state of California against Lowe's. The suit was settled for $6 million. (You can check out the public records.) Even the smallest company that employs independent contractors for sales or installation should examine their methods now and get advice from an indus- try-specifc attorney. QR : We see within the industry numerous methods for compensating salespeople or Don't be misled by information asserting that big companies get away with treating employees as independent contractors so your position is secure. 38 SPECIAL SECTION: HOME IMPROVEMENT PRO | October 2015 QR QualifiedRemodeler.com For more info circle 62 Employee Owned and American Made Since 1961 Style ~ Quality ~ Performance Imperial Kitchen Ventilation 7 Year In-Home Warranty—Best in the Industry 800.851.4192 www.imperialhoods.com NKBA & NAHB Member www.masterack.com Our quiet composite interior is completely customizable. Shelf heights, drawers, dividers, and accessories can all be quickly adjusted by hand. 800-334-4183 For more info circle 63

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