[KKKKkkkk1]

There's a very clear explanation in the article about the reason for this from an employment attorney. It's necessary so that Google can falsely classify these workers as non-employees.

Under existing IRS guidelines, a company can't arbitrarily determine which workers are full employees and which are contractors. The business has to be able to prove when a worker meets certain key legal definitions about contract work, and, if they fail, they would be required to treat the contractor as if they were an employee, according to Figari.

"One of those guidelines is whether there is a written contract or employment benefits. The other aspect is, is the relationship a continuing one, and is it a key aspect of the business," Figari said. Companies will try to work around this by saying: "If it's cut off at a specific timeline, we were able to get by without them for six months. They are not a key aspect of our business, and [the role] is not a continuing one," she explained.

[kodah]

It is federal law that makes them do this, but it's also because they are in fact using contractors for full time work, they're just doing the bare minimum to separate the two.

[downrightmike]

They do it to keep headcount down, this is just abuse. Feds have their rules because of past abuse. This should be added.

[frankbreetz]

but why are they no allow to do the same job as a Google employee? Isn't starting as a contractor and being brought on as an fte common practice?

[coryking]

> but why are they no allow to do the same job as a Google employee?

That is how it is if you are a contractor working for any tech company.

The actual shitty part about being a "contractor" is you are almost always a W2 for the contracting firm. Which means you get none of the benefits of actually being a real contractor. As a 1099 you can:

* Deduct (and potentially charge for) a ton of shit like travel expenses, hardware, software, internet, phones, home office, etc

* Set up a SEP IRA which lets you contribute 25% of your salary up to $58,000. This is far more than what you can contribute to an employer sponsored 401k (though as a W2 your employer can top your 401k to the same limit)

* Bill as high of a rate as you can get away with

* Easily work multiple gigs at once

* Use your own tools.

* It's your own business, literally. So act like it!

The drawbacks to a 1099 are:

* You are your own collection agency. Some clients are very slow to pay you.

* You have to pay your own social security and stuff

* You pay full freight for healthcare

* You are not entitled to unemployment

* Taxes get a little more complex

* You are a "flake" in the eyes of a bank... so getting loans for houses and stuff is a little harder.

As a W2 working through a bodyshop you get:

* Paid weekly no matter how slow their client is paying

* They provide you equipment... no matter how shitty it is

* Maybe some kind of shitty healthcare offering that disqualifies you from buying your own plan and deducting it on your taxes

* Maybe some kind of shitty retirement plan that disqualifies you from contributing pre-tax money to your own IRA

* You can collect unemployment. Helpful for that 6 month break.

* You get paid at a substantially lower rate than whatever they are billing the client.

* You are a cog in a machine.

[sidlls]

They could hire them as a FTE, but that would cost more. This six month “break” is little more than a cost optimization exercise.

[freeone3000]

Because if they're doing the job an FTE does, they should be full-time from the start. Otherwise, a company could be doing software development or food delivery or whatever and have no employees at all, merely having them all be "independent" "contractors" with very few legal protections.

[izacus]

You just invented Uber. Congratulations, you're rich!

[twiddling]

That's the dream

[kevincox]

It depends a lot on the role. There are some roles where Contractor to FTE is fairly common and other roles where there is no equivalent FTE role and there is basically no chance of making the transition. (You would be basically applying fresh)

[PeterisP]

They are not allowed to do the same job as a Google employee because Google does not want them to ever become an employee - even though they do need many full time people for that job.