Two years ago I started working for a new company, as a contractor for 90 days. Boss liked my work and wanted me to work permanently. Here’s what I don’t get though- he extended my contract with no firm limit or expiration. So I was putting in hours like a permanent full time worker but getting paid like a contractor. I don’t know if this practice is popular in the US.
Later on (like 10 months ago), due to budget problems my hours started getting cut, so now I was at 30 hours a week. But my payroll checks stopped, and instead my boss switched to using PayPal. This was most frustrating because usually I wouldn’t get paid on the dot and it takes at least 3 business days to withdraw your money to my bank account, and the 3% transaction fee. It was like getting taxed but without getting any benefits.
I no longer work there, but I would like to know if that practice is common by small companies where budget is everything and whether it is completely legal. And most importantly, how do I avoid joining these kinds of businesses in the future? Any warning signs to spot these sort of practices before I decide to work for them?