Asked to go freelance from full-time - what is the legal process?

[TC2017]

What is the name of your state (only U.S. law)? Wisconsin

Hello - thanks in advance for any advice. I was recently told by my company that my full-time job as I know it will be changing to freelance in 30 days. Does anyone know if there is a standard "way" this should take place...do they have to formally end your full time (or ask you to resign your full time position) and then present you with a contract for what freelancing would mean as far as time, pay, etc? So far I am 15 days in and have heard nothing. Just wondering what the legal process is to end a full-time contract of a 15+ year employee to turn them to freelance in an at will state would be. Thank you!

 

[Zigner]

What do you mean by "freelance?" What is your job? (Not simply the title...your actual duties.) Will that be changing?

 

[cbg]

There is no mandated process that must be followed in all situations.

 

[TC2017]

I am a graphic designer who worked 40+ hours a week. With freelance, basically the duties wouldn't change, but the amount of work will, and I will lose my benefits. I will be working a lot less hours, basically on-call when they need me. So I just assumed there should be some sort of documentation in place showing that I will no longer receive the benefits and the salary, and something new worked out showing a new rate and schedule (on call, 3 days a week, whatever that would be)? Since they aren't calling it a layoff, can I try to collect unemployment if I am freelancing for the same company? My pay will be severely changed.

 

[Zigner]

Graphic Designer is a title. I asked about your job duties.

 

[FlyingRon]

They can't just call you an independent contractor arbitrarily. If they treat you like an employee, you are an employee. Typically, if they tell you when and how to work with no flexibility on your part, you are an employee be it full or part time.

 

[TC2017]

Basic duties: meet with clients directly and art director/creative team, create images and layouts that identify a product or convey a message, develop graphics for product illustrations, logos, and websites, create designs for client campaigns.

I'm really just wondering how this information should be conveyed to me, in a way that is fair and legal. I would really think they would have to show me that my full-time, salaried position is ending and have me acknowledge that I have been told that; and then to show me in writing that I will now be on an hourly determined rate for work as they feel I am needed. I just have a feeling this is to actually phase people out without laying them off outright....and I want to know if I am considered a freelancer for them, can I collect unemployment? I could go from 40 hours to 5 hours a week depending on how they determine the freelance work, and I can't make it on that. Right now I have been told nothing, and I don't know if I will until close to the time I am "switching over" (I also don't feel this should be me having to push HR so hard for answers, if they made the determination, shouldn't they have a process in place to share with me?). I will of course look for other work, but that will take time, and I have bills to pay : (

 

[Zigner]

I'm not convinced that you still wouldn't be considered an employee...

There is no requirement that they specifically tell you what you are asking about. If your hours are being cut from 40 per week to 5 per week, then you should apply for unemployment. In my opinion, you should also seek other employment.

 

[cbg]

So I just assumed there should be some sort of documentation in place showing that I will no longer receive the benefits and the salary, and something new worked out showing a new rate and schedule (on call, 3 days a week, whatever that would be)?

I am not going to take a stand on whether you will actually be an IC or whether you will be a part time employee. In this situation, the answer is the same either way.

With a single exception, there is NO requirement that they provide you with ANY documentation regarding your benefits or salary. The sole exception is that they will need to provide you with information about COBRA.

There is NO requirement that they give you anything in writing regarding a new rate or a schedule. There is NO requirement, in fact, that they provide you with a schedule at all. They can call you in on an as-needed basis and there is nothing illegal about that.

I don't know how to make it any more clear than that.

 

[TC2017]

Thank you both for your timely help. It is very much appreciated.

 

[Chyvan]

Since they aren't calling it a layoff, can I try to collect unemployment if I am freelancing for the same company?

Sort of. They don't have to say "fired" or "laid off," but you are being fired. Fired from the job that you had. They are making you a new offer of work, and I wouldn't call it work in the traditional sense. They are offering you the opportunity to be self-employed. If you want the UI, you can't do the freelancing. Save paperwork of these changes. Try to persuade them to leave things as is because you won't be accepting the freelance position if that is your choice.

You just can't have both. If you want the UI, fine. If you freelance at the same time, you'll have to report your earnings, and then won't get a UI check because you might make too much, or you'll be labelled as someone that's "joined the ranks of the self employed," and not get a UI check, or can be labelled as "not able and available," and not get a UI check.

Just decide what you can live with.