Independent Contractor Pay: Hassle free or Headache?

The NFL has a lot of problems these days. Over the past few weeks America has watched stories about NFL players that are more like episodes of COPS than Sports Center features.

But have you heard about the cheerleaders? Here's a whole different headache for the league.

Over the past year, 13 cheerleaders in five states have filed lawsuits against their respective teams claiming the teams violated minimum wage laws. How is possible that in a billion-dollar industry the sideline entertainers don't make even minimum wage?

The NFL has always given responsibility for cheerleader management to the teams. The teams either contract individually with their selected squad members as independent contractors or contract with an outsourced sponsor or management company. In turn, the women are typically paid for each game and promotional appearance during the season. Pay range for the season -- yes the entire season -- can be as little as of $100.

Keep in mind the ladies are required to attend practice weekly, come to all scheduled games during the season and post season, and may have promotional responsibilities as well. That means that starting contractor pay for an average season could be as low as $20 per month.

The contractor pay issue has become so problematic that the cheerleaders for the Buffalo Bills, the Buffalo Jills, will be absent for the first season ever since the 1960s. In Oakland, earlier this month, one cheerleader was awarded a settlement of more than $1 million for the Raiders' cheerleader independent contractor pay practices. After that, the Raiders implemented a pay program for cheerleaders, paying them $9 per hour.

With workplaces that operate globally now, hiring contractors has never been a more “in-
vogue” business practice than it is now. For a fraction of the cost of hiring and retaining an actual employee, contractors can be hired locally, nationally, or even globally to fulfill tasks or projects.  Hiring contractors not only can be easy and beneficial for both parties, but also breaks the barriers of long-term commitment for either party while operating in a flexible and cost-efficient manner. For a lot of businesses, independent contractors just make more sense – or do they?

The good news in all of this is, I would say ninety-nine percent of the people reading this column do not have cheerleader contract problems. The bad news is the NFL isn’t the only place where contractors are incorrectly classified when it comes to pay in a workplace – and doing so can easily become a bigger headache than putting the contractors under payroll.

In fact, a series of state and federal employment laws come into play when determining if an individual should be paid as a contractor or employee. The U.S. Department of Labor, state departments of labor, and the IRS have been increasing audits of employers across the country each. These audits hit big and small companies alike and require a detailed review of every person you have paid over a three-year period. Even if a contractor no longer works for a company, if he or she is deemed to have been classified as an employee the company is required to pay back all the “unpaid” employment taxes plus penalties.

It seems like it would be worthwhile to classify appropriately to make sure you don’t end up like the
Buffalo Bills without the Jills – and a lawsuit to follow, right? Check-in with us next week as we determine if you should pay someone as an independent contractor or employee.
Monica Bitrick is the CEO of Bitrick Consulting Group, a human resources agency in Idaho Falls.

Ririe family finds life sweet in August, September

Patty Landon of Landon's Sweet-Lovin' Corn

If you like your corn on the cob fresh and sweet, there are a few things to bear in mind, says Patty Landon of Ririe, who runs Landon's Sweet Lovin' Corn with her husband, Norman.

First of all, it helps if you cook it the day it's been picked. Second, it needs to be kept cold. "If it's picked cold, it has a higher sugar content," she said. That's why their daily pickup load is harvested by hand (and by Norman) at 4 or 5 in the morning, then kept covered by a heavy tarp.

If you've got to keep corn for a day or two, keep it refrigerated and don't shuck it until you're ready to cook it.

This is the seventh year the Landons have parked their truck in late summer/early fall at the corner of First Street and North Holmes Avenue (their son, Allan, has another truck at Sunnyside and Hitt.

Idaho Falls has been good to them, and they usually sell out every day. "Canners will come by and buy 10 to 40 dozen ears," Landon said. "One person even bought 60 dozen."

Their price is $4 for a dozen ears. The two sweet corn varieties they prefer are serendipity and sugar buns, both best sellers at roadside stands across the nation. Serendipity produces bigger ears and sugar bun. Each have their own particular flavor.

Ironically, most of the corn grown in the Midwest is for feed or ethanol or corn syrup. Landon said her sons served LDS missions in Iowa and Missouri and begged her to send corn to them.

The Landons run a small operation, 100 acres they bought from her father, Arlo James Moss. They will be on the corner for as long as the corn holds out, but with the weather getting colder it's going to be a limited number of days. Like them on Facebook here.

Gold's Gym plans first anniversary celebration Monday

Gold's Gym in Ammon, late Tuesday morning

Gold's Gym in Ammon will be having a first anniversary celebration Monday with a two-night Vegas hotel stay and a Precor stretch trainer featured as the big giveaway prizes.

After some fits and starts at remodeling the old Teton Spectrum Raceway building at 2363 Eagle Drive, Gold's moved last year from its temporary location near Kmart to its present location. The celebration will be from 4 to 8 p.m. Members of the public are invited to come and see the facility, which as 30,760 square feet on the main floor.

Here is the link to their Facebook page: https://www.facebook.com/pages/Golds-Gym-Idaho-Falls/419013054859743

It's official: Hobby Lobby is coming to Ammon

We had a story nearly two weeks ago suggesting it was virtually certain that Hobby Lobby would be coming to the Sandcreek Commons development at Hitt and Sunnyside Roads.

This appeared in the BizMojo inbox this morning at 11:41.

Idaho Falls, ID - Ball Ventures and Woodbury Corporation today announce the coming of Hobby Lobby to the Idaho Falls area. The planned location for the new craft and home décor retailer is Sandcreek Commons, located at the corner of Hitt Road and Sunnyside Road in Ammon. Hobby Lobby will occupy a 55,000 square foot building and plans to open in the third quarter of next year. Cabela’s previously announced plans to locate in Sandcreek Commons.

 Hobby Lobby is an Oklahoma City-based company founded in 1972. The Ammon location will be one of over 600 stores owned by the privately held national retail chain. Hobby Lobby’s first Idaho location opened in Meridian in 2010. A second location is set to open in Nampa on September 22, 2014. The Ammon location is expected to bring roughly 35 to 50 jobs to the community, paying $15 per hour for full time positions and $10 per hour for part-time associates.

Ball Ventures, an Idaho Falls based real estate development company, is pleased to speak on behalf of both development companies regarding the newest major national retail tenant coming to the east Idaho region. “We are pleased Hobby selected Sandcreek Commons as the location for their new store. They are very popular with shoppers in this region and we anticipate the store will enjoy great success at this particular location,” says Eric Isom, Ball Ventures’ Chief Development Officer.

Paint-your-own pottery studio opens downtown

Mary and Josh Hashagen of Possibly Picasso, the newest business to open downtown.

For a couple who moved to Idaho Falls only in April, Josh and Mary Hashagen have not wasted any time getting their shingle hung out.

Today, at 351 W. Broadway, where the Bookstore on Broadway used to be, the two opened Possibly Picasso, a paint-your-own pottery studio. Mary had been to one in Phoenix and saw the business possibilities. "We wanted a family place for indoor activity," she said.

Making the space appealing took some work, including paint, a sink and a new hardwood floor. Then there was the issue of rewiring the store with a service robust enough to power two kilns without blowing every fuse on the block. Luckily, Josh's trade is construction, so the work could be done "in house." Because Josh's trade is so seasonal, they feel they have the time a small business requires.

A ribbon cutting has been scheduled for Sept. 27. For more information, their Facebook page is www.facebook.com/possiblypicassollc.