Debuskey Testifies Before New York
State
Blue Ribbon Panel
On Thursday, February 14, 1999, Governor Pataki’s
special Task Force convened a hearing regarding pending legislation designed
to prevent the misclassification of employees as "Independent
Contractors." The hearing was held in the State Office Building in
lower Manhattan. President Emeritus Merle Debuskey was the first witness to
speak. He represented ATPAM and Unions for the Performing Arts (UPA), which
is the main sponsor of the legislation. Debuskey gave a compelling and
impassioned presentation which was based on his personal experience. In
1974, Debuskey won a case against the IRS which had improperly classified
him as an independent contractor and tried to hold him responsible for
paying unincorporated business taxes, penalties and interest as a Broadway
Press Agent.
Independent Contractor status is a very serious issue for
ATPAM members, especially those who maintain their own place of business.
For years the National Right-to-Work Committee, National Association of
Chambers of Commerce and other conservative business organizations have
lobbied to classify more and more Americans as independent contractors. Why?
The answer is pretty simple. To cut the cost of doing business by
eliminating payroll taxes (read benefits) for their workers. If you are mis-classified
as an Independent contractor by your employer, you lose your rights to many
employee benefits that we all take for granted, such as Unemployment
Insurance, Workers’ Comp, Disability and Social Security.
This is why ATPAM has fought so hard for so many years to
have all payments to ATPAM members be in the form of salary – not fees.
But the battle is not over. It will take significant pressure from working
people and their representatives to pass the legislation, which is closely
modeled on a law in Wisconsin. The proposed law sets forth a litmus test for
Independent Contractor status. There is a list of qualifications. If a
worker fails to meet all the criteria, he or she may not be classified as an
Independent Contractor.
On Tuesday, March 16th, representatives of
ATPAM and UPA will travel to Albany to lobby the Legislature further on this
subject. Developments will be reported in the Hi-Lites on a regular basis.
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