shoot $12/hr sounds like a deal to me. you can hire scottmandue and me for $25/hr and we can get the job done. i can't help you on what needs to be done. it seems like i missed the boat.

Actually .... you knew the answer to the question before you ever asked it. You just needed validation.

:eek:
Look into a Non-Compete agreement. Also, throw him a job once in a while with someone you fully trust and check behind him. If he steals from you, it should be immediate dismissal. If he'll steal a dime, he'll steal a million bucks.
Keep records of evaluations and meetings you've had with him. Also have a list of problems he screwed up that you had to fix. This way you are on solid ground if you have to send him packing. I'm sure you know that you have to keep this super confidential.

O.k. DasBoot, you're going on and on about this, and now you tell us he's contract? I'm starting to think his boss is the idiot. If he's contract be polite with 2 weeks and say "contract over".

And if I was the contract employee, no way in hell I'd sign a non-compete unless hired on full time permanent, especially after 2 years.

In your first post, you describe him as an employee, now he's an independent contractor. Which is it? The difference will determine what you can and can't do. You may want to find that check list (internet) to help you determine whether he's an employee or an independent contractor. If necessary, modify his work role accordingly.

For example, if he has to punch a clock, has a designated work station in your office, follows the rules and routines of other employees, follows your desired procedures to perform his job, etc., then the IRS might categorize him as an employee. You would then have to provide the same benefits and conditions as other employees. Terminating an employee isn't as easy either.

MHO,
Sherwood

This might help

http://forums.pelicanparts.com/uploa...1224295983.jpg

http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

If you classify an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that worker (the relief provisions, discussed below, will not apply). See Internal Revenue Code section 3509 for more information.

In NJ, the consequences are more severe. Subcontractors work for multiple employers.

Uhhh , I think my suggestion would be to use your own screen name for " advice ".

Todd :)

You should not be discussing performance with a 1099 employee. If he's contract - his contract either continues or it's over.

You open yourself to all kind of issues when you treat your 1099 contractors like employees. Research the case law surrounding Microsoft. Look at Wage and Hour issues, Fair Labor and Standards Act.

Has he worked overtime? Has he kept a log of his work? I think you need to look at your full exposure of wage and hour issues before doing anything.

Make sure you have non-competes/non disclosure information in place before releasing - when the crap hits the fan (and employees know all your secrets) you want to be protected as well as possible.

Just my opinion.

He's an independent contractor. I hope the IRS isn't monitoring this thread...

I've been an employer for over 25 years and I'd agree with the general posts of this thread..... FIRE HIM!

Now you did mention that he had a wife and kid, and he's worked for you for two years. So if it were me I'd belly up to some of the responsibility of being a poor employer; afterall, you got a problem with this guy after two years, you must take some of the responsibility, especially if you want piece of mind?

Next time he mouths off, ask him if he's serious about his squak talk or just jaw jacking? Then have a stern talk with him. I've done this and sometimes the employee will start to breakdown, but I can honestly say, it usually doesn't work. End it quick, fire him now.

Get rid of his negative energy, replace him with someone positive.

I have had guys, sub contractors and their workmen, come on my jobs over the years. some of these guys are always mouthing off about good they are and how much they make and its never enough. what they make is always a lot more then what everyone else is making around them. That's real bad, really bad to my employees to hear. It really screws with the head. If I hear it, I try to disrupt their conversation and ask about problems with the job on hand. If your guy thinks he's worth more then that, He will soon comtaminate the others who are good. This guy IS BAD BLOOD to the rest of your people. One day he's going to slowly take clients from you or may be sell them to your competors behind your back. I think you have given enough chances. You mention that good people are hard to find ( I can't agree with you more). Just how good is he and what makes him so good? Let us know why you want to keep him. Is it the trainning that you dread?

This guy is a user and a tool, and he will always be asking for more. He will never be self motivated, and he will turn on you at the worst possible time.

I have had many like him. do not count on changing him. Count on him to do what he has always done.

reading this has been a pretty good laugh.

bottomline..........either job done or guy ge-splitts. at garrett aviation there was a 90 day contract period. after that you were full time. standard reviews blah blah. if ya didnt cut the mustard at anytime..........adios. there was no union to protect you. right to werk state here in arizona. saw more people come and go then a carousel. various reasons......being late insubordination etc. az. has "10 reasons for termination" and obviously it was one of those.

Firing people is no fun. I've been there, and it's always hard.

But I've never regretted it aftwerwards. It's always a relief to be rid of a negative person, and I always wish I wouldn't have waited so long to send them down the road.

One of the most rewarding was when a former employee thanked me for letting him go. We had a long talk during his termination, and a few months later he stopped by and said it forced him to re-evaluate some things in his life, and he was doing better than he had in years.

If after 2 years he doesn't know exactly where he stands against your expectations, then you've failed as a manager.

He needs to understand precisely what he has to do in order to KEEP his job. Needs to be measurable & achievable. (stick)

Then lay out what needs to happen to get the big bucks (carrot)

Review his progress (or lack of) often. If you have to fire him, it will be no surprise.

Good luck!

Just put him on piece work. Lower his hourly wage and pay a commission.

Its a great motivator. He will likely quit.

He sounds like a liability, or one in the making, I think you know what you have to do. It's the part you hate the worst of being a business owner.

Piece work = employee

Hourly wage = employee

Commission = ?

If he's productive while working long hours, but earns all his money from sales commissions, keep him.

Sherwood