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Old 10-24-2006, 12:49 PM   #1
Clayton
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Join Date: Mar 2005
Location: Grand Junction, CO
Posts: 109
Default Captive Vs "Contractor"

I was RIFed (reduction in force) recently and the company has nobody who can do what I've been doing for them over the last 11 years. I do full DTP, technical writing, layout, technical illustration, and product renditions, using Ventura, Draw, Photoshop, and the usual associated stuff (i.e. MS Office).

My final salary was a bit over $25/hour, with paid health benefits including dental, and Retirement IRA fund matching (3%). I felt underpaid by about $5 an hour.

The company wants me to continue doing my job but as a contractor. Supposedly their budget only allows for about 10 hours a week.

Is the following contract unreasonable?

10 hours/week X 6 weeks = 60 hours
60 hours @ $60 per hour = $3600
Contract expires December 31, 2006
Work over $60 per hour billed at same rate

$60 per hour in my area is comparable to charged rates for auto mechanics, plumbers, carpenters, etc. who of course are paid much less than that.

Upon contract expiration, a new contract can be negotiated.

I just want to know if this is a reasonable starting point for negotiations. Some have suggested I add the condition that if they do not give me enough work for the full 60 hours, they forfeit the remainder of the contract dollars, but I'm not sure if that tack is appropriate.

Any ideas are appreciated, as always.
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