Independent Contractor CFI Removed from Work w/o Cause

[JeffDG]

Odds are you have a contract. Whether it's written or not is a different matter.

If you have an agreement as to how to operate with an FBO, that's a contract.

When you go into your local McD's and order some fries, you enter into a contract.

 

[Brad Z]

* edited to provide some clarity on the original question

You mean you deleted the part about you planning to leave in a month?

I suppose if you really want to be bullish you can ask your student to insist on flying with you. I'm not sure why he would though, you'll be gone before he even has a chance to solo. Don't expect to be compensated for the school cancelling you; it just doesn't work that way. If you're that busy that you're rearanging you life for a student lesson, then maybe instructing is not the right thing for you right now.

 

[write-stuff]

Since independent contractors are not employees (and that's an important distinction where the IRS is concerned), they have no rights to continued work. An employer may stop using them at any time for any reason.

 

[poadeleted20]

Odds are you have a contract. Whether it's written or not is a different matter.

If you have an agreement as to how to operate with an FBO, that's a contract.

When you go into your local McD's and order some fries, you enter into a contract.

Jeff's point notwithstanding, in a situation like this, if it isn't written down, it didn't happen, and then you're back to whatever your state's laws about such things say, and again, you need a lawyer to know where you stand.

 

[poadeleted20]

Since independent contractors are not employees (and that's an important distinction where the IRS is concerned), they have no rights to continued work. An employer may stop using them at any time for any reason.

...subject to whatever is in the contract between the two parties. There's nothing that says such a contract cannot include guarantees of work (or at least payment if work is not provided, or is cancelled on short notice so other work cannot be obtained).

 

[docmirror]

You guys are missing the main point here. He's a casual employee. If he works less than a 1000/year, on a casual basis with no fixed schedule(8-5, M-F), and is called as needed, there's no "removed from work". Where it gets complicated is if he's on a W2, vs a 1099. I've dealt with this before with a similar situation where the worker thought that because they worked the last 3 weeks straight, that they deserved to work the next week. Even though, I explained in excruciating detail that this was casual work, and that they were self-directed. IRS form SS-8 has all the info you want. But first, I want to know if he's a W2 or 1099 paid, and whether he's in a right to work state. So far, he's being cagey with that info, so I'm out of here, and I hope the OP gets booted off the island.

 

[aviator430]

I'm a CFI on a 1099 -- ie. I'm an independent contractor. I don't know how one could be an independent contractor on a W-2, so I thought it was clear in the original post.

This state is a right to work, at-will employment state.

The question isn't whether or not they chose not to call me on future jobs. My point is I was already scheduled to work the job and then was pulled off of the job at the last minute. This is not covered in the contract. Since I'm still working there, I have not been terminated. The ultimate lesson learned is that I should have my own supplemental contract to go along with the company-issued agreement that covers me in situations like this.

My contract actually says I am "expressly free" to work for other companies. My operations manual, however, says I cannot do so without expressed written permission from the company. It is well known within this company that such permission is never granted. My contract requires me to comply with the operations manual, and not doing so is a contractual basis for termination with no notice.

 

[ClimbnSink]

Dude you need to relax and move on. Your CFI job is crap, they use you for cheap labor and you build time til you can do better.

 

[Old Geek]

Dude you need to relax and move on. Your CFI job is crap, they use you for cheap labor and you build time til you can do better.

This. Besides, Robin Williams killed himself today. This is insignificant in the big scheme of things.

 

[Clip4]

The simple solution is for you to call the student. If he desires your services, ask him to cancel with the other instructor, and reschedule with you.

 

[JimNtexas]

They want the benefits of having employes AND the benefits of not having employees. They can't have both.

You can move on and put this whole thing behind you, or file a form SS8 with the IRS and/or contact your state workforce commission and complain that you are an employee being paid on a 1099.

Either one will be cause a medium sized PIA to the flight school at best. At worst it could put them out of business.

You have to decide if you want to go down that road.

 

[poadeleted20]

You guys are missing the main point here. He's a casual employee.

You cannot say that definitively based on the information posted. He may be an employee, he may be an independent contractor -- we don't have enough information to know.

 

[poadeleted20]

I'm a CFI on a 1099 -- ie. I'm an independent contractor. I don't know how one could be an independent contractor on a W-2, so I thought it was clear in the original post.

You and your employer may think you're an independent contractor, but an analysis by the IRS might determine otherwise, and find your employer in violation of a lot of tax and labor rules as a result. It's happened before.

This state is a right to work, at-will employment state.

That would matter only if you are an employee.

The question isn't whether or not they chose not to call me on future jobs. My point is I was already scheduled to work the job and then was pulled off of the job at the last minute. This is not covered in the contract.

Then assuming you really are an independent contract rather than an employee, you don't have any grounds to complain about breach of contract. Keep this in mind next time you sign such a contract, and make sure it covers all reasonably foreseeable issues.

Since I'm still working there, I have not been terminated. The ultimate lesson learned is that I should have my own supplemental contract to go along with the company-issued agreement that covers me in situations like this.

Good idea -- work out the terms you think should be included, then discuss it with management. Just don't be surprised if they decline to accept your terms. Whether you can then negotiate terms will be largely a question of how much they want/need your services.

My contract actually says I am "expressly free" to work for other companies. My operations manual, however, says I cannot do so without expressed written permission from the company. It is well known within this company that such permission is never granted. My contract requires me to comply with the operations manual, and not doing so is a contractual basis for termination with no notice.

That's an issue to discuss with an attorney.

 

[airdale]

IMHO this is getting a little out of control. From the thread it appears that we have one young CFI who is upset about one small event in his working life.

Getting him spun up about wage & hour laws, IRS regulations, employment contracts, etc. will not lead to any good outcome for him. Sure, he can go nuts and investigate all of this stuff, call in the mounties, and irritate his employer. For what? Revenge for one slight?

As has been suggested, he should talk politely and calmly with his employer to see if he can understand the employer's viewpoint on the issue and, if he doesn't like what he learns, he can attempt to convince the employer to change.

From that point he can continue to work for the employer or he can walk. If he walks, he can do it without burning bridges or he can try to make a stink. The downside of the latter could be significant reputation damage to his budding career. Maybe not, but why take the risk? There is no downside to leaving on good terms.

 

[docmirror]

You cannot say that definitively based on the information posted. He may be an employee, he may be an independent contractor -- we don't have enough information to know.

I can, and I did. Now that I know he's on a 1099, and he has no fixed schedule it becomes crystal clear. The 1099 is a dead giveaway, along with the nature of his schedule. For a CFI in a 141 type school you might have a point, but then he would be on a W2, and have regular hours, and withholding, etc.

I'm out. No, really this time.

 

[Z06_Mir]

I
The question isn't whether or not they chose not to call me on future jobs. My point is I was already scheduled to work the job and then was pulled off of the job at the last minute. This is not covered in the contract. Since I'm still working there, I have not been terminated. The ultimate lesson learned is that I should have my own supplemental contract to go along with the company-issued agreement that covers me in situations like this.

My contract actually says I am "expressly free" to work for other companies. My operations manual, however, says I cannot do so without expressed written permission from the company. It is well known within this company that such permission is never granted. My contract requires me to comply with the operations manual, and not doing so is a contractual basis for termination with no notice.

And what if the airplane had broken? No flight time for you, would you still want to get that 1.4 hours you think you deserve? Welcome to the real world.. You will never find a job that is flexible, pays well, and you know exactly what you're going to do each day. If you want to be in the aviation industry you're going to need a tougher skin because this isn't an easy business. 1.4 hours in your logbook is hardly worth thinking about beyond a minor annoyance.

Why would you agree to a contract that says you can't instruct elsewhere when it's clear you're only instructing a couple hours a week at best? Either you have another full-time job or you're in a position that doesn't require one (college student?) and you didn't see it as a big deal to begin with... but it suddenly is now that your 1.4 hours wasn't allowed as originally planned.

PS, 18 hours is pretty good notice. Sometimes I'm lucky enough rolleyes to get 12 from work when craps hitting the fan.

 

[jesse]

I'm a CFI on a 1099 -- ie. I'm an independent contractor. I don't know how one could be an independent contractor on a W-2, so I thought it was clear in the original post.

This state is a right to work, at-will employment state.

The question isn't whether or not they chose not to call me on future jobs. My point is I was already scheduled to work the job and then was pulled off of the job at the last minute. This is not covered in the contract. Since I'm still working there, I have not been terminated. The ultimate lesson learned is that I should have my own supplemental contract to go along with the company-issued agreement that covers me in situations like this.

My contract actually says I am "expressly free" to work for other companies. My operations manual, however, says I cannot do so without expressed written permission from the company. It is well known within this company that such permission is never granted. My contract requires me to comply with the operations manual, and not doing so is a contractual basis for termination with no notice.

Seriously man. It's one lesson. You're going to get far "worse" things stolen from you in the business world. Your ability to handle that maturely and move forward will be pretty important if you want to be successful.

If you try to make someone sign all those contracts just so you can do some instruction for them every now and then you're going to get laughed out of every airport. There are only so many airports.

But what do I know..I'm just an independent flight instructor.

 

[airdale]

The ultimate lesson learned is that I should have my own supplemental contract to go along with the company-issued agreement that covers me in situations like this.

Oops. Missed reading that howler earlier.

If you tell an employer that you require that he sign your contract, you'll learn a lesson alright. No doubt about it.

 

[JimNtexas]

You cannot say that definitively based on the information posted. He may be an employee, he may be an independent contractor -- we don't have enough information to know.

I think we do have enough information. The flight school is paying this CFI as a contractor and reporting that income on a 1099.

The flight school is also requiring the CFI to follow all the same rules as they set in writing for full time employees.

These are red flags that the flight school is engaging in wage theft by requiring this CFI to pay social security taxes that are the legal obligation of the flight school to pay.

This flight school is clearly in violation of the law. This practice is extremely common with small businesses of all kinds in the U.S.

My advice would be for this CFI to walk away, taking with him the lesson that if he signs on to work as a contractor, he needs to establish up front in writing that he's not an employee. In particular, he should carefully read any employee handbook or policy document that they want him to sign, and get written exceptions to rules that should not apply to a contractor, such as forbidding him to work for other customers or setting strict attendance policies.

His other alternative is to burn the flight school. In the big scheme of things this may not be his best move.

 

[aviator430]

Not interested in metaphorically (or literally) burning down the school. Never was.

There are a lot of points being made here by people who have no idea what they're talking about. I'll save time and just leave it at that.

 

[aviator430]

For a CFI in a 141 type school you might have a point, but then he would be on a W2, and have regular hours, and withholding, etc.

And that's where your assumption is wrong, sir.

 

[Henning]

I'm a CFI on a 1099 -- ie. I'm an independent contractor. I don't know how one could be an independent contractor on a W-2, so I thought it was clear in the original post.

This state is a right to work, at-will employment state.

The question isn't whether or not they chose not to call me on future jobs. My point is I was already scheduled to work the job and then was pulled off of the job at the last minute. This is not covered in the contract. Since I'm still working there, I have not been terminated. The ultimate lesson learned is that I should have my own supplemental contract to go along with the company-issued agreement that covers me in situations like this.

My contract actually says I am "expressly free" to work for other companies. My operations manual, however, says I cannot do so without expressed written permission from the company. It is well known within this company that such permission is never granted. My contract requires me to comply with the operations manual, and not doing so is a contractual basis for termination with no notice.

You are not an Independent Contractor, you are an illegally represented employee. Your situation doesn't meet the IRS test for IC.

 

[bobmrg]

I am an independent contractor CFI for a flight school that manages its reservations using an online scheduling system. Students schedule the school's aircraft and a listed instructor like me at will. I set my availability in the scheduling application. When a student books me for a flight, I arrange my personal schedule to ensure my plans the night before and the day of will allow me to be on time to the flight and fit for duty.

A student booked me and one of the school's aircraft for a lesson 6 days prior to the lesson date. 18 hours prior to the reservation, the manager of the school removed my name from the reservation and replaced it with his own, without notifying me until it had already happened. I attempted to call the manager and his boss, but they would not return my calls. The manager blamed his boss, claiming his boss advised him to do it. The boss texted me on Saturday morning confirming that it was his decision to change the reservation. I know the student personally and introduced him to the school. That student scheduled me for the lesson, not another instructor.

Has anyone had a similar experience? How did you handle it if the boss doesn't believe he was in the wrong? I believe I am entitled to some form of repayment for the cancellation by the company. I am not an employee, so as an independent contractor, reservations made by customers are my contracts to work. I am not permitted to work for any other company while under my independent contractor agreement with this one.

Nobody would sign a contract that says "All reservations are tentative, and you may be removed from one without notice for any reason."

* edited to provide some clarity on the original question

My experience as an "independent contractor" was cut short the day that the insurance carrier for the small FBO where I was working pointed out to the owner clause in his policy saying that their airplanes were insured for training only when flown by an instructor employed by the insured. H had been operating his flight school without valid insurance and didn't know it.

From that point on, I was an employee, with all the concomitant paperwork.

Bob Gardner

 

[poadeleted20]

I can, and I did. Now that I know he's on a 1099, and he has no fixed schedule it becomes crystal clear. The 1099 is a dead giveaway, along with the nature of his schedule. For a CFI in a 141 type school you might have a point, but then he would be on a W2, and have regular hours, and withholding, etc.

I'm out. No, really this time.

Good, because you're still wrong about anyone other than you being certain on this. As I said, the IRS has nailed employers on this issue before when they were calling people "independent contractors" and giving them 1099's when by application of the law, those people really were employees, and I think that's happened to flight schools and CFI's specifically. Gets really painful and expensive for the employer when that happens.

In any event, we don't have enough information in the OP's posts to apply the IRS tests for this, so while we know how the OP is being treated, we do not know if the OP is being treated according to the law on point.

 

[poadeleted20]

I think we do have enough information. The flight school is paying this CFI as a contractor and reporting that income on a 1099.

The flight school is also requiring the CFI to follow all the same rules as they set in writing for full time employees.

These are red flags that the flight school is engaging in wage theft by requiring this CFI to pay social security taxes that are the legal obligation of the flight school to pay.

This flight school is clearly in violation of the law. This practice is extremely common with small businesses of all kinds in the U.S.

I think you're probably right, but I'm not willing to say that with certainty without further details. However, I think you are a lot more likely to be correct than docmirror.

In any event, "it's a lousy situation, Commander Eddington." The OP will have to decide whether to eat this sandwich or find another restaurant. But no matter which way the OP goes, it's probably a good thing the OP came here to discuss it first rather than to confront the school in the heat of anger.

 

[JimNtexas]

My operations manual, however, says I cannot do so without expressed written permission from the company. It is well known within this company that such permission is never granted. My contract requires me to comply with the operations manual, and not doing so is a contractual basis for termination with no notice.

I think the OP wants to have some sort of recourse because he was denied this flight 'without cause'. Even if he were a real employee, which he clearly isn't, the school doesn't need 'cause' to put him on or off the schedule.

An employee might have some rights in some places to go to their friendly neighborhood workforce commission and complain that he or she was denied wages to which he or she was entitled.

As a 1099 contractor he isn't an employee, and has only the rights in the contract he signed, which probably give him no rights at all.

Most of the posters in this thread have said that in one way or another. I don't think it's what he wanted to hear.

 

[aviator430]

IMost of the posters in this thread have said that in one way or another. I don't think it's what he wanted to hear.

It's not that I'm looking for a particular answer; I'm just explaining my point and asking people for their opinions. If they contradict mine, so be it.

In a Part 141 environment where a student is not due for a phase check, and the student has booked me for training on a particular lesson, I expect to be able to work notwithstanding weather, maintenance, or an airport closure/TFR. If I were to cancel the student 18 hours prior like that and inconvenience another instructor with a last-minute assignment, or inconvenience the customer with no instructor available to replace me that day, I could easily have my agreement terminated. That's all I'm trying to say. If it doesn't work the other way -- and evidently it does not -- then oh well.

Ron's quote sums it up well.

 

[Henning]

Correct, your remedy begins with going to the IRS, but you'll be burning a lot of bridges for a few thousand dollars.

 

[poadeleted20]

Correct, your remedy begins with going to the IRS, but you'll be burning a lot of bridges for a few thousand dollars.

I doubt the OP would be receiving "a few thousand dollars" for one stage check. But if so, I want to know what school that is so I can apply for a job there. ')

 

[GCA319]

If you're leaving in a month, was it a new Primary student? Perhaps they realized one of the most annoying things to any new student is changing instructors in the middle of training for a rating? Were you up front with the student that you're outta there a month from now?

Just a thought. Perhaps they're trying to run a flight school and a new student on your schedule isn't good customer service.

If it was just a BFR or getting someone current to rent from them, different story.

Yup. I was a an independent CFI in NM and just moved to another state for a new flying job and handed over all of my students the moment I found out I was leaving (picked up a temporary bar tending gig to make money before I left). Swapping out instructors mid training is tough on students and it should be our job to try to make that transition as seamless as possible. That being said, it sounds more communication could have taken place if we are getting the whole story.

 

[mrkbbd]

The issue is not the "1 missed flight" - the issue is the employer continuing to remove OP from future flights. If it becomes a pattern, it's time to leave. Don't waste your time with bosses who do not respect the work you do - remember they are making money on you. If there is a growing pattern, you need to calmly confront and see what the issue is. If there is a legitimate concern the OP is leaving, then new students should not be assigned to him. Taking current students is another story.

The best advice from this thread is to not burn bridges. The aviation community is very small. I guarantee OP's boss knows someone who knows someone and OP can get a reputation early as a "troublemaker." This is a BAD stigma to have when starting out.

I would not threaten with the IRS stuff everyone keeps bringing up, it is really irrelevant for this situation whether you are an employee or a contractor. OP's employer needs to consult actual employment attorneys before publishing manuals, but no one on the board can conclude whether or not OP is an ind. contractor or not - not all the facts present and only the courts can really conclude.

Remember, the CFI job is just to build hours until you are qualified for your next upgrade. You may have to put up with some BS along the way, but look to the bigger picture.

 

[jesse]

I would not threaten with the IRS stuff everyone keeps bringing up, it is really irrelevant for this situation whether you are an employee or a contractor. OP's employer needs to consult actual employment attorneys before publishing manuals, but no one on the board can conclude whether or not OP is an ind. contracto

Regardless of the legalities, given the small community, the OP is best to just move on and not be trying to bring the State or Feds down on the flight school. If he does that, he better expect that decision to come back and bite him in the ass time and time again in the future.

There is no way I would take on an independent flight instructor if I heard they did that. Regardless of if the employer is wrong he knew what he was getting into when he signed up. Someone that signs up for things knowing how it works, then ******* and raises hell when one flight gets moved to another instructor, is not someone I would touch with a hundred foot pole.

 

[Lindberg]

Since independent contractors are not employees (and that's an important distinction where the IRS is concerned), they have no rights to continued work. An employer may stop using them at any time for any reason.

You might be surprised to find out that the exact opposite is true.

 

[Topper]

You might be surprised to find out that the exact opposite is true.

Short of a contract, the opposite is not true. I use independent contractors all the time in my business (not employees I am calling independent contractors) and am free to use them when needed and not use them when I don't want to.

As far as employees, I am in an employment at will state. Short of an employment contract, I am also free to stop using (layoff or fire) any employee wit or without cause or explanation as long as it is no for a protected reason (I.e. Race, religion, marital status, etc.)

Jim

 

[Henning]

I doubt the OP would be receiving "a few thousand dollars" for one stage check. But if so, I want to know what school that is so I can apply for a job there. ')

The few grand comes from the cut of the penalties and interest the IRS gives the informant. America pays snitches well.

 

[nosehair]

Yes. There is another side to this story. From experience as a CEO I believe that there is almost no chance that the situation is exactly "black and white" as the OP sees it.

aviator430, when you approach your employer you should remember a very important rule of life:

Do not kick today that which you might have to kiss tomorrow.

If you leave every job and every relationship on good terms you will build a network that can provide referrals, job leads, or other positive things that you may not even know about directly.

Conversely, though it can be satisfying to one's ego to pee on the carpet, tip over the coffee machine, dump the wastebasket on the boss's head, and stomp out, you can be absolutely sure that no good will come of it. And you can be pretty sure that your behavior will be remembered and remarked upon in situations where it is detrimental to you.

So forget all the babble about independent contractor status, small claims court, the IRS, etc.

There it is, and bears repeating.

Waaa, waaaa, waaa! That what I hear from the OP. Sorry to be so frank, but it may be a beneficial slap in the face.

Move on! Get away from people, places, and things, which seem to obstruct your desired way of life.

Bosses can hire and fire any way they want. Fact of life. Get used to it, especially in any job where there are more applicants then jobs.

You cannot correct the faults of the world, only yourself.