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Can you really work free in America today?

Updated on October 31, 2014

USA is NOT a "right to work" state anymore

America and its right to work has quietly changed in the past decade.

I AM talking about a more subtle change that has been "slide in" as a supposed part of an older cause to help mistreated labor that was not "given" benefits by their longer term employeers even though they are treated like staff employees. While there may be some merit in this in select areas especially with the ACA now in place, helping enhance "fair" compensation to deserving workers is NOT the government's agenda and not where its manpower resources or spend is going.

The real agenda of the government is to shut down "highly paid" 1099 contractors ability to work for large client companies. The governemnt has made it "illegal" for companies to hire indepedent contractors. To repeat , it is now in violation of the complex Federal Standards Labor Act " interpretation" for large companies to hire 1 or 2 man firms or independent workers. The freeze out will force these 1 & 2 person companies / independent contractors to take LOWER paying jobs with benefits instead of their current HIGHER paying job with self purchased health care AGAINST each worker's will. They can do that or literally move overseas. A few larger firms are fighting to keep this specialized labor but it is difficult, risky and expensive.

This issue forces the masses to serve “big brother” at artificially LIMITED compensation rates. This issue relates to the right to work of Americans being “amended” by illegal manipulation by the Federal Government. I am not talking about a formal change in the law, I am talking about closed door negotiation and extortion by the USA Federal government’s IRS against hundreds of companies. This issue - the real issue- is not being covered by the media.

The US federal government is forcing small and independent business owners OUT of their own business.

(How? - by forcing larger companies to break their contracts with such small independents in favor of replacing them with larger staffing services that have also bowed down and agreed to follow IRS covertly defined, " suitability to hire" instructions.)

You are no longer qualified to get a job unless you work as W2 employee of a large company?

( Issue: If you don’t take a job as W2 employee of some large company, then you will NOT be allowed to do any work associated with any mid to large size company. Basically you will no longer be allowed to have ANY small business in the USA!)

The cancer like growth of this covert, IRS sponsored, change is amazing. The effects I am directly aware of in the oil & gas industry are already profound. Larger oil & gas companies have been pushed and prodded for last few years on this issue by the government. Non compliance risk is significant as the government apparently threatened to push court findings in favor of granting long term 1099 contractors retirement benefits as well as holding the oil and gas companies responsible for back taxes of the 1099 staff as if they had been W2 staff!

Result was those same large companies trying to restructure their staffing in such a way that all are W2 staff – either their or W2 staff from large approved staffing companies.

For your background, a 1099 contractor is typically a skilled individual or small business that does limited term business with a larger company. The only compensation is money. No benefits, no insurance, no paid vacation are paid to the 1099. All taxes owed are the 1099’ers responsibility to pay. Gross income for Tax accounting is fully reported to the IRS by the big company so full tax under the law is paid. To be clear the millions of 1099 workers I am talking about are NOT all cash types. These people spend more time internally managing their work and pay more actual money than most W-2 folks. That said extra opportunity for right offs exists for 1099ers, getting your own insurance is required, and the result is that overall tax owed by a 1099er is usually about 10+% less than an equivalent W2 job…

Swift International: : a large job shop agency for years that placed 1099 independent contractors (over 50% of their staffing before 2010 were 1099s). Now, as of 2013, they cannot and will not hire you unless you agree to be a W2 employee of theirs before they “place “ you with firms like Chevron, etc.

FACT: The big oil companies like Exxon, BP, Shell, etc have been engaged by the Federal government on this topic for the past few years. They were threatened to keep these "how to staff" engagement sessions quiet. It took a while but their forced , partial implementation of these unAmercian policies finally resulted in leaking out the reason why.

Job interview conversation excerpts below with Swift and other firms under orders to keep this change quiet include:

- “ you are well qualified for the job, but you are required to be hired as a W2 staffer with us first.”

“ I would prefer staying a 1099 independent contractor”

- “ We no longer support those wanting to stay 1099, if you can’t accept the position as out W2 employee, then we can no longer offer it to you”

However you need to realize that BOTH Democrats & Republican are supporting this evil change. This is NOT a so called “Obama-nation” that some Tea Party supporters talk about… and yes, many Congressmen are working through LPs or similar 1099 like constructs themselves... and yes they are exempt from this anti-American purge of independent American workers….

Both liberals and conservatives and everyone in between is in the slow process of un-Constitutionally being forced down restricted pathways of employment.

Implementation is only partial for now. Reports the IBM, Microsoft, Exxon, Shell, BP and Chevron have been under siege for the past few years now by the IRS have surfaced. The large “body shops, and large professional recruiting groups that support such super major firms have been directed by these main clients to comply with primarily or exclusively supplying W-2 staffers. Phase out periods are being used in some cases to reduce chance of litigation and media attention.

Tactics by the IRS are simple. IRS likes to reclassify 1099 independent contract workers as W-2 employees when practical in order to better control the individual , limit his options and to maximize the taxes collected. When reclassification is successful, it typically results in fines, penalties, and back-taxes for which the employer is many time held liable. These amounts can be large and typically also result in forcing the “newly defined” employer to also create a pension or 401k plan balance as if the worker had been a normally participating employee the entire time.

The U.S. GAO (the General Accounting Office) reports IRS claims millions of dollars in uncollected payroll, social security, medical, and unemployment insurance taxes “lost” because of misclassification of independent contractors. However the GAO report fails to “value” the large fees these contractors pay to insurance companies for expensive medical coverage, accountings and pension consultants and other help that W-2 workers don’t need to be involved with since these 1099 individuals and small companies create their own set of working benefits.

The reasons for this attack against your personal liberty are simple.

1) Improve tax yield by around 10% without openly changing rules

2) Improve control ( and reduce freedom) in the working population

This is a long term, bipartisan attack against the right to work freely in the United states of America. It will not go away in 3 years and will continue to spread unless WE THE PEOPLE do something.

W-2 is the IRS preference for indentured servant type workers in the USA
W-2 is the IRS preference for indentured servant type workers in the USA
LP or LLC employment mode view
LP or LLC employment mode view

USA IRS policy - W2, 1099 or welfare

IS it OK to be forced to work as W2 employee or not get a job with big company?

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    • jman00001 profile imageAUTHOR


      2 years ago from Texas

      Appreciate the response and follow up. Much has happened since the hub was placed online.

      More corporate based corruption - some of it captured on audio recording tape by subcontractor that sent it to me. Literally begging me not to get him involved out of fear. I checked with my hiring manager on what I thought was a safe subset of the data. Things went very badly very quickly.

      I respect many of the hubpage surfers including stillsurfin, but most have NO IDEA of the real world.

      The main stream media is bought and paid for and totally politically biased. We have no USA based independent media at all and have not for many years.

      The people are struggling with a horrible choice for 2016 president. The real issue is the fear that both Trump and Clinton have shared some truths mixed with partial truths as well as pure fiction. Truths that may include Clinton is a liar, traitor , criminal and possible murder. Truths may also include that Trump is not well suited emotionally or politically for office. Neither candidate is appropriate for holding office . The majority of Americans believe that yet here we are ( again) deciding between 2 unsuitable candidates- between the lesser of to evils or risks...

      The USA is going downhill - more divided- more corrupted than ever before similar to the fall of the Roman empire...

      My fellow Americans- Trump's multiple divorcees, bankruptcies, and non military experience should have NEVER allowed him to compete in the republican primary let alone win if this system was not totally corrupt and broken. ( Of course the 10+ years old claims recently shared by over 6 women about his groping and rape -line attempts were somehow not "known a few months ago during that primary? ..hmm. I wonder who was behind that cover up?) I cant tell you how many pro trump voters hope Trump's VP gets to take over soon should Trump pull out a victory..

      My fellow Americans- Hillary Clinton for president? Seriously.. All the ridiculous corruption up-to and include death involving her and her Husband President Bill Clinton with whitewater? The credulous Monica affair and cover up of the dirty blue dress by unattractive Monica's mother? Can you even imagine the bribes , cover-up, threats and scandal associated that we did NOT hear about? Hillary is the first women to run for president . I believe that A women can definitely do a great job in that role - but not that woman! We need a loyal American, no private server 33 thousand email server scandals, no shady financial support, no obvious shady control of the major media. We need less corruption and lies..

      Trump unfortunately is mostly right in the claim that Hillary has terrible judgement. However my fear is the reason for that bad judgement is that she IS a traitor and cares ONLY for her own and main supporters well being. The rest of us can burn.

      The reason for sharing the notes above now is an event that occurred tonight at Mo's Irish pub in Houston. A young white male marine was arrested at the bar.

      I was there and witnesses the situation as well as spoke with the man. Other than an older retired martin and me, NO ONE carted that the young solder on leave was in pain. He was very drunk- drunk BEFORE he ordered and was served his first drink. He said that his brother was recently killed during a covert operation. He was not belligerent but definitely shared his story with many. He stated the govt and media are NOT telling the truth about what is happening overseas. That the non military people do still have power but MUST act and test their strength and stand up for their families now before it is too late. He was not a Trump supporter exactly - believe me I asked- but he was AGAINST the horrible current government and the shady decisions and lies that have lead to MANY american services man deaths. I strongly suggested that he be given a taxi or uber ride home versus calling police. That did not work until I noted with others that the establishments was serving him drinks that he paid for well after he was obviously drunk. Typical liberal response to those who fight and die for this country.

      Many in oil and gas plan to leave and work overseas permanently if things keep trending down. The above disrespect and uncaring of real American solders in pain is one reason why.

      Shame on us for letting this once great country degrade soo far soo fast.

    • profile image


      5 years ago


      From your profile, you seem like a bright capable woman.

      But,-no offense - I have problems agreeing with you on this topic.

      I always try to use facts and data - not suspicions, theories, guesses, fears, innuendo, he-said, she-said, or somebody's personal belief - to come to an opinion.

      I haven't seen anything that indicates that the US Government has a secret "agenda" to stop Americans from being free to work independently... no laws, policy, or overt actions to substantiate such a claim.

      And the idea that the US Government is "covertly" doing this is immediately suspicious to me.

      Mainly because the US Government isn't clever, cohesive, or capable enough to do it covertly in the first place. The US Government itself is too disoriented, disconnected, and contentious to carry out some secret agenda like that.

      Second, because I know from personal experience that there are many, many Companies that are using Temporary Employees to meet their business objectives in the Aerospace and Agriculture Industries.

      Now, I'm NOT saying that you didn't experience a Company that had it's own business strategy to reduce or eliminate temporary workers - but, I believe they were doing that for their own financial and business reasons, not because the "US Government was out to get them" if they didn't.

      Also, I do not know the motives of those individuals in those Companies who told you that. For all I know they could be Paranoid Tea Party nut jobs who think the Government is ALWAYS "out to get them" in one way or the other.

      Or, maybe there is something specific within the Big Oil Community that makes them lean towards permanent employees over temporary employees - that is something I know nothing about.

      As far as the Companies you mentioned, I also do not know about some "covert policy" change for temporary workers for IBM.......

      But, I can tell you that is not the case for Microsoft.

      I have a home in Hawaii and a home in Seattle and have a lot of friends (including my brother-in-law) who works for Microsoft in various organizations, including HR.

      When I talked with my brother-in-law a few minutes ago about this subject, he just laughed. He has a number of consultants working on Projects that he leads - and by Microsoft company policy is encouraged to evaluate temporary workers when needed for surge capability. They are used for a wide variety of assignments.... Including even software coding when it's needed.

      One last point -----------

      If you want any real credibility in your hubs you should refrain from using demeaning caricatures of the President of the United States.

      Normally that is done by closed-minded individuals that are extremely biased in their thinking and beliefs.

      Those individuals WILL gain a following with other biased closed minded individuals and be seen as "credible" because they are viewed as "birds of a feather".

      However, by doing so - those individuals will immediately lose credibility with all the logical, rational, independant, open-minded individuals who form the majority of Americans.


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