Part time employer wants me to quit or stop working for one of their vendors

[stok234]

Florida but corporate is out of Texas.

So I'm a freelancer, however, one of the companies I work for considers me a part time employee. Lets call them company A. They take taxes out of my pay and give me a w2 at the end of the year. All the other companies I work with send me a 1099 and consider me an IC.

One of the companies I work for, lets call them company B, does work for company A as a vendor. Company A is telling company B that I have to either stop working for company B or quit company A. Does this sound legal?

Normally I wouldn't mind but company A fills in a lot of work when things get slow and I'd hate to lose that. One of the reasons company A is trying to enforce this is that they see it as a loophole to the 1560 hours a year limit for part time employees.

 

[cbg]

It not only sounds legal, it is legal. When the same person is working for one employer and one of their vendors, it can set up all kinds of issues that you wouldn't normally think of off the top.

 

[eerelations]

Yep, it's not only legal but quite common.

 

[stok234]

Ok, I guess no other option than to quit. Thanks for the input. On a positive note I discovered I can still get the work from company A I would've missed out on by going through yet another vendor and charge more! Tell me how that makes sense to company A.