Just curious, Tippytoe, but how does that legally make them "employees"? They are paying a fee to lease the equipment, and they do make their own hours, and set their own fees. If you own equipment, you can use it.
I'm not defending Walmart, I just want clarification.
Thanks.
I think this article will help you:
http://www.synergistech.com/20qs.shtml
The short answer is that Walmart DOES control your hours and days and your fees. They tell you how many days you must work and how many hours you much work (#7) You may be able to chose which day you take off but they will demand you work X number of hours and days. It is my understanding that they still simply charge the OD a percentage of their monthly intake which is illegal overall and considered "fee-splitting". Most or all boards of optometry forbid ODs from working for non-doctor entities. Walmart gets around this by labeling ODs as "independent contractors". Other commerical places simply put a small 200 sq ft 'room' on the side of their optical so the OD can have an "independent" office. Some states even require a seperate door for the ODs "office"--called '2-door states'.
Try to work only 8-2pm or take every weekend off or raise your fees to $180 for an exam or take off at 10 am to see your childs school plan and they will fire you in 30 days (per their contract). Walmart also provides most equipment for the OD (#14). Equipment is not rented from Walmart last time I checked. They provide all the basic equipment and the OD can buy other equipment if they want and have space (retinal camera for example). These two reasons by themselves make Walmart ODs employees legally, and not 'independent contractors". Additonally, ODs in Walmart would fail points # 1, 3, 6, 8, 9, 15 and 19 below.
These are the 20 questions used by the IRS to determine employee vs independent contractor status:1. Are you required to comply with instructions about when, where, and how the work is to be done?
Among other things, this means you should schedule meetings collaboratively, you shouldn't use your client's equipment, tools, or office space on a regular basis, and your name shouldn't appear in the company directory much less on the wall near your ... uhh ... coffee cup.
2. Does your client provide you with training to enable you to perform a job in a particular method or manner?
Your client must not provide you with more than minimal training. For products you cannot be expected to learn on your own, you must pay market price to attend training sessions that the client provides for its customers.
3. Are the services you provide integrated into your client's business operation?
If you perform the same services as an existing or recently departed employee, you're an employee. To qualify as an independent contractor, you must provide only those services that the company needs occasionally and that are incidental to its central business.
4. Must the services be rendered by you personally?
If you are contractually obligated to provide all services personally, or put another way you are contractually forbidden to subcontract any part of that service, you're an employee.
5. Do you have the capability to hire, supervise, or pay assistants to help you in performing the services under contract? You must be able unilaterally to engage one or more contract or staff workers to help you provide the contracted service. A client who forbids you to hire helpers has sealed their own fate in an independent contractor-compliance audit.
6.Is the relationship between you and the person or company you perform services for a continuing relationship? Your service must be occasional and incidental to the client company's central business. Repeat engagements are fine, but long continuous assignments are considered irrefutable proof of employment.
7. Who sets the hours of work? If you allow your work hours to be dictated by your client, either by precedent (consistently making yourself available when the client's workers are available) or explicitly in your contract, you look a lot less independent to a contractor-compliance auditor.
8.
Are you required to devote your full time to the person or company you perform services for? If your client explicitly demands all your time and forbids you from accepting other projects concurrently, you're that company's employee.
9. Is the work performed at the place of business of the potential employer? If your client demands that you perform all your services at their site or hinders your efforts to work offsite, you're that company's employee.
10. Who directs the order or sequence in which the work must be done?
If your client demands that you perform your services in a specific order, you're that company's employee.
11. Are you required to provide regular written or oral reports to your client? If your client demands regular, detailed status reports and won't settle for the explanations typically included in an invoice, an auditor is much more likely to consider you that company's employee.
12. What is the method of payment — hourly, commission or by the job? (Contigency- or project milestone-based payments are ideal.)
Being paid exclusively for hours worked makes you appear to be a wage slave. Synergistech recommends defining milestones in your contract and documenting your progress toward them in each invoice. We also advise invoicing in the name of your business, not as an individual.
13. Are your business and/or traveling expenses reimbursed?
Your business and travel expenses are deductible against income you earn as an independent contractor. Not incuring these costs makes you look like an employee.
14.
Who furnishes tools and materials used in providing services?
If you don't incur the expense of providing your own tools, training, and other necessities for your services, you're an employee.
15. Do you have a significant investment in facilities used to perform services?
Many otherwise compliant contractors fail to expose themselves to the risk of losing money. If you can't demonstrate investments in your own tools, training, marketing, insurance, and similar business expenses, your independence will be questioned.
16. Can you realize both a profit or a loss? This question is pivotal — for many auditors, exposure to the risk of losing money is the single biggest differentiator between an employee and a contractor.
17.Can you work for a number of firms at the same time? A true independent contractor can, and when possible should seek to, work for multiple clients concurrently. Synergistech recommends that you never stop marketing yourself and that you take seriously all opportunities, regardless of whether you're currently fully engaged.
18. Do you make your services available to the general public? Real independent contractors have their own web site, are listed in relevant business directories, and conduct marketing campaigns to emphasize that they're in business and demonstrate that they can be found by those seeking their services.
19. Are you subject to dismissal for reasons other than nonperformance of contract specifications?
If you can be terminated because your client has a layoff, or decides to hire a staff employee to fill your role, you're not all that independent. At-will termination makes you look like an employee. Unless you've violated the contract yourself, insist on at least two weeks' notice.
20.
Can you terminate your relationship without incurring a liability for failure to complete a job? Yes, if you're working on a time-and-materials basis and invoicing hourly. No, if you're working on a project, or milestone, basis — in this case you are obligated to deliver on your commitments if you wish to be paid for your efforts.
