umpires and labor laws

[Guest Guest]

I belong to an organization that has a clinic coming up. Attendance is "mandatory" for umpires who wish to be assigned in the coming season. The clinic costs three game fees plus we must work multiple games, multiple days, with no pay.

Anyone know if there's any law against requiring me to work free just to get consideration for a job I already have?

[scrounge]

 

In related news, a group of NYC strippers just yesterday were awarded $10.9 MM in back wages over this very issue as the federal judge found they were improperly classified as IC.

 

So, if I met one of these NYC strippers at their place of employment and I offered her a temporary work project (say raking the leaves in my yard), would she be an IC or my employee ?

 

 

If the project you came up with was raking leaves, then not only would you owe all employment taxes but there would be a 10% penalty surcharge for lack of imagination.

[semper_fi_72]

Usually business licenses are for places of business that you occupy and work from. Particularly when offering goods or services to the public in general. Most umpire and sports officials as independent contractors don't fit and are thus excluded. I can assure you that some local ordinances and codes are written broadly enough to atrempt to include any business income of any type conducted within their jurisdiction. However, as with most laws, enforcement can be a problem.

If you aren't standing around bragging about how much you're being paid for umpiring or making in general no one will bother you and you can do what your conscience demands when income tax filing time comes around.

And that's all I have to say about that! (Forrest Gump voice)

Umpiring is like a box of chocolate.  You never know if your getting a good game or bad game today.

[lawump]

My random thoughts on this thread:
 
(1) Setting aside federal tax law, the determination of employee vs. independent contractor is a state law issue and can vary from state-to-state.  Very rarely, in my experience, is the form that a person signs stating that they acknowledge that they are an independent contractor the determining factor in court.  
 
(2)  I am President of my local high school association (the largest in my state).  We have open elections.  If you have been a member for 2-years, you can vote in the election.  One-half of the seats on our Board of Directors are up for election every two years.  I am living proof that anyone can become a leader in our association if they get support from members.  I was elected President in just my fourth year in the association.  We don't have a "good ol' boy" network.  If we did, they would have never let this loud-mouth Bostonian get elected President of this association located in the South!  Our financials can always be viewed by members, but as I tell my members: we don't have much.  It won't take you long to review them.
 
(3)  We require, to be in good standing, that our members attend our on-field weekend (2-days) clinic held in January.  It costs $50.  NO instructors get paid anything.  As a former MiLB umpire, I have taught at a lot of camps under MLB umpires over the years.  I have taken that experience and use it while spending hours upon hours (seriously...a lot of time) preparing and organizing our umpire clinic every year.  I get paid nothing, except the satisfaction of seeing our association improve.  The cost of the camp is in addition to our annual dues, but the camp fees pay the camp expenses and nothing more.  We do NOT run the camp to make a profit.  Over the years, they have had former MiLB umpires, current major Division 1 conference umpires and PBUC evaluators serve as instructors...all for $50.  If a member cannot attend our camp, we will let them attend another camp...as long as it was attended within one calendar year and it is a legitimate camp.  (For instance we've had members attend Tony Thompson's weekend camps and a Jim Evans clinic.)

[Jimurray]

My random thoughts on this thread:

 

(1) Setting aside federal tax law, the determination of employee vs. independent contractor is a state law issue and can vary from state-to-state.  Very rarely, in my experience, is the form that a person signs stating that they acknowledge that they are an independent contractor the determining factor in court.  

 

(2)  I am President of my local high school association (the largest in my state).  We have open elections.  If you have been a member for 2-years, you can vote in the election.  One-half of the seats on our Board of Directors are up for election every two years.  I am living proof that anyone can become a leader in our association if they get support from members.  I was elected President in just my fourth year in the association.  We don't have a "good ol' boy" network.  If we did, they would have never let this loud-mouth Bostonian get elected President of this association located in the South!  Our financials can always be viewed by members, but as I tell my members: we don't have much.  It won't take you long to review them.

 

(3)  We require, to be in good standing, that our members attend our on-field weekend (2-days) clinic held in January.  It costs $50.  NO instructors get paid anything.  As a former MiLB umpire, I have taught at a lot of camps under MLB umpires over the years.  I have taken that experience and use it while spending hours upon hours (seriously...a lot of time) preparing and organizing our umpire clinic every year.  I get paid nothing, except the satisfaction of seeing our association improve.  The cost of the camp is in addition to our annual dues, but the camp fees pay the camp expenses and nothing more.  We do NOT run the camp to make a profit.  Over the years, they have had former MiLB umpires, current major Division 1 conference umpires and PBUC evaluators serve as instructors...all for $50.  If a member cannot attend our camp, we will let them attend another camp...as long as it was attended within one calendar year and it is a legitimate camp.  (For instance we've had members attend Tony Thompson's weekend camps and a Jim Evans clinic.)

Admirable way to run an association and training. But, since you have "law" in your moniker, who pays your umpires? If its a bunch of leagues and school districts would any state say they were employees of all the payers? Or does your association pay them? Or, does the association pay them for a big preseason tournament and then they revert to being paid by the schools? If some government entity wanted to nitpick this, wouldn't it fall upon the paying entities?

[lawump]

Our umpires are paid directly by the home team's school 100% of the time for games.  For tournaments, they are paid directly by the tournament host school.  As an aside, some schools want to give us (the association) their entire game fees for the entire season and then have us pay the actual umpires who actually umpire the games.  I will not allow this to happen.  I do not want the earned game fees going through our association's bank account; I don't want to give the appearance that we pay our members. 

 

I can't answer for all states, but for South Carolina I don't think umpires are employees of the schools.  I do not think that mere payment is enough to make us employees of the schools.  The degree of control an entity has over the person often is the determining factor as to whether or not we are an employee or an independent contractor of that entity.  By the very nature of our jobs, the schools have minimal control over how we perform our duties as umpires. In our area, they do not control our training (other than making us get a minimal score on the NFHS national test), they do not control what uniforms we wear, they have no control over what umpires are assigned to games (other than the state championship which is selected by the High School League).

 

Now conversely, we (the association) do not pay the umpires, but we DO have some control over the umpires.  For example, we require training attendance, we set uniform standards, we assign umpires to games, etc.  However, we also make clear that our members are free to join another association. 

 

WHERE I THINK AN ASSOCIATION REALLY RUNS A RISK OF BEING HELD TO BE AN EMPLOYER (AND THE MEMBERS NOT BEING INDEPENDENT CONTRACTORS) is when the association does all the things that we think of an association doing (assigning games, setting uniform standards, conducting mandatory training, etc.) BUT ALSO has a policy of not allowing members to belong to any other umpire association.  I think having a policy of not allowing your members to belong to other associations greatly increases your risk of being found to be an employer.

 

This may not be an issue for some associations (because they may be the only association in town), but in my association we specifically tell our members that they can belong to other associations.  They are not allowed to share our confidential/copyrighted materials (usually training materials) with the other association, but they can join the other association.

[Umpire in Chief]

If you are an independent contractor, wouldn't you need to have a business liscense in every town you work in? Anybody do this?

Actually a few years ago the City of Chesapeake, Virginia actually went after sports officials. They found out who the schools were paying as officials then if they did not have a business license they got fined. Guys in my HS association were talking about this a few years ago, but I haven't heard anything from it in a while.

 

Back to Employee vs Contractor...

 

In my professional opinion I just can't see where sports officials can be considered independent contractors. As @DP26 mentioned above there are too many factors where our associations have overwhelming control of our own work and our work product. As was mentioned:

• We must wear uniforms (many with an association name/logo) 
• We are told where to work and when
• If we do not do a satisfactory job, then the association can take action against us (demote, assign lower level games, require additional training) 
• Conversely, many associations rate, rank and promote us
• Associations solicit the business and the rates
• Associations place other requirements on us attending meetings and clinics, etc...

 

But I much prefer to be considered an IC than an employee. Perhaps we qualify as subcontractors to our association???

[Majordave]

Subcontractors to our associations.............That's some creative thinking there Warren.

Someone might think you were a lawyer or worked around a bunch of lawyers. Hahahaha

[semper_fi_72]

So let me bring up one point that I do not believe has been mentioned.

Employees are issued W2's at the end of the year to report Wages and Taxes withheld.

1099's are issued to Independent Contractors and others who are not employees who are paid more than $600.

I have had a couple schools issue 1099 for as little as $75.

Also who is withholding State and Local Tax, Fed Tax, Unemployment Taxes etc etc etc.

 

So if the IRS says you get a 1099 instead of a W2, where is the issue?

[Replacematt]

So let me bring up one point that I do not believe has been mentioned.

Employees are issued W2's at the end of the year to report Wages and Taxes withheld.

1099's are issued to Independent Contractors and others who are not employees who are paid more than $600.

I have had a couple schools issue 1099 for as little as $75.

Also who is withholding State and Local Tax, Fed Tax, Unemployment Taxes etc etc etc.

 

So if the IRS says you get a 1099 instead of a W2, where is the issue?

State law determines your status, not federal law.

[Kevin_K]

 

So let me bring up one point that I do not believe has been mentioned.

Employees are issued W2's at the end of the year to report Wages and Taxes withheld.

1099's are issued to Independent Contractors and others who are not employees who are paid more than $600.

I have had a couple schools issue 1099 for as little as $75.

Also who is withholding State and Local Tax, Fed Tax, Unemployment Taxes etc etc etc.

 

So if the IRS says you get a 1099 instead of a W2, where is the issue?

State law determines your status, not federal law.

 

What if you earn income in a state that has no personal income taxes?

 

When it comes to federal income taxes, the IRS has jurisdiction.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Self-Employed-or-Employee

 

 

Most states that have personal income taxes follow the same guidelines, however there are some that may vary. It would be best to consult your state's department of taxation or a qualified professional rather than the sage advice of umpires.

[johnnyg08]

Here's a pretty good piece on an independent contractor vs an employee.

 

http://money.cnn.com/2014/11/20/news/companies/fedex-driver-lawsuit/index.html?hpt=hp_t2

[maineump]

Don't forget to carry your own insurance. Many groups may have insurance, but it is to protect the organization, not the umpires.

 

Bottom line -

#1 - If you want to work for them, you are sort of at their mercy. Just protect yourself with insurance.

#2 - Find out what they do with tax information for the pay you get

#3 - Talk to an accountant to get advice with pay you receive

[zm1283]

I belong to an organization that has a clinic coming up. Attendance is "mandatory" for umpires who wish to be assigned in the coming season. The clinic costs three game fees plus we must work multiple games, multiple days, with no pay.

Anyone know if there's any law against requiring me to work free just to get consideration for a job I already have?

 

I know that if our associations around here tried to make a $150 clinic mandatory, we wouldn't have very many umpires left. We have enough trouble finding/keeping our numbers up with only a couple meetings per year. 

 

For those of you who are making statements regarding independent contractor/employee, be very careful.  Each State and the IRS may make a determination based on various factors as to whether or not you are an independent contractor.  Just because the association By-Laws state you are an independent contractor, that does not mean you are an independent contractor.  Just by signing a policy and procedure and "employment" agreement does not make you an independent contractor.  There are many factors that are considered to make a determination whether you are or are not an independent contractor.  I have practiced in this area, and represent corporations, athletic associations as well as umpire associations and advise you that there are many factors to consider.  

 

Exactly.  Just cause people say you're an independent contractor doesn't mean that you are.

 

I work with some people who do football games at the college level and because they work at another system school, the check has taxes withheld.  I think it would be really interesting if one of those people got hurt officiating and applied for worker's compensation.

 

 

I work for a school district and I have worked some subvarsity basketball tournaments here in the past. Every time I've done so, they pay me on my regular paycheck like an employee and withhold taxes, retirement, etc. I've brought it up to them and told them if I get injured, they would likely be on the hook for worker's comp and that I'm an IC when working as an official. They don't seem to mind and want it that way. Fine by me I guess....

[noumpere]

 

 

I work for a school district and I have worked some subvarsity basketball tournaments here in the past. Every time I've done so, they pay me on my regular paycheck like an employee and withhold taxes, retirement, etc. I've brought it up to them and told them if I get injured, they would likely be on the hook for worker's comp and that I'm an IC when working as an official. They don't seem to mind and want it that way. Fine by me I guess....

 

 

It's very difficult to have someone be an employee in some roles and an IC in other roles.  Even if they tried to make you an IC for officiating, someone would push back on this and the penalties might be worse that the risk of worker's comp etc.

[spiffdawg7]

 

 

 

I work for a school district and I have worked some subvarsity basketball tournaments here in the past. Every time I've done so, they pay me on my regular paycheck like an employee and withhold taxes, retirement, etc. I've brought it up to them and told them if I get injured, they would likely be on the hook for worker's comp and that I'm an IC when working as an official. They don't seem to mind and want it that way. Fine by me I guess....

 

 

It's very difficult to have someone be an employee in some roles and an IC in other roles.  Even if they tried to make you an IC for officiating, someone would push back on this and the penalties might be worse that the risk of worker's comp etc.

 

I am a teacher and coach in the same district/county that I do 95% of my High School umpiring. The county doesn't even know I am an umpire, the schools just pay our association directly and the county doesn't know who all of the umpires are in the association.  There are at least a couple other teachers in the association as well. I don't umpire at my own school, but I am in the same district and still get paid as an independent contractor.

[noumpere]

 

I am a teacher and coach in the same district/county that I do 95% of my High School umpiring. The county doesn't even know I am an umpire, the schools just pay our association directly and the county doesn't know who all of the umpires are in the association.  There are at least a couple other teachers in the association as well. I don't umpire at my own school, but I am in the same district and still get paid as an independent contractor.

 

 

 

That's because the association pays you (which, not to rehash what has been said, can (not WILL) lead to the association being an employer).  I was talking about the situation where the school (or the school district) pays the umpire directly.

[Army Ump]

No law against it, but you can certainly write off anything related to that clinic; miles, cost of meals, etc.

[Army Ump]

By law, anything you earn as an IC is taxable income;  just because you make less than $600. doesn't mean it's not taxable income...it only means the IRS hasn't received a copy of a 1099.  Businesses, schools, etc that employ IC's may not have to issue 1099 for income below $600., but that doesn't preclude them from doing so if they so desire.