New York Times

How the Chinese View Us: Too Many Hamburgers

by Fred Abramson on September 22, 2010 · 5 comments

Thomas Friedman of the New York Times is currently on a trip to China. He relays a skit that he believes cuts to the core of how the Chinese view America. Here is the story:

China’s CCTV aired a skit showing four children — one wearing the Chinese flag, another the American, another the Indian, and another the Brazilian — getting ready to run a race. Before they take off, the American child, “Anthony,” boasts that he will win “because I always win,” and he jumps out to a big lead. But soon Anthony doubles over with cramps. “Now is our chance to overtake him for the first time!” shouts the Chinese child. “What’s wrong with Anthony?” asks another. “He is overweight and flabby,” says another child. “He ate too many hamburgers.”

That is how they see us.

Friedman observes that the infrastructure in China is top-notch. He (incorrectly) contrasts China’s bullet trains with the malfunctioning  the escalators at New York’s Penn station, but his point is well taken. The Chinese are racing  to the peak, focusing on creating first class projects that take massive government intervention.   On the other hand, large projects in the US proceed at a snail’s pace.  Exhibit A: My law office is two blocks from ground zero which is still a construction site.

Our political system is hampered by political forces that have more a stake in getting elected rather than providing concrete solutions to our problems.  American’s need to think more about what is best for America rather than what is best for them on an individual level.

What do you think?  Is the political center unfocused? How can our government work faster to create projects in a massive scale to help economy keep up with China? What should the role of corporations and the private sector be?

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Employers with Independent Contract Workers are Targeted by the Government

by Fred Abramson on February 19, 2010

According to the New York Times, the IRS is cracking down on companies that try to pass off regular employees as independent contractors. More than two dozen states are cracking down on employers that improperly claim regular employees as independent contract workers. The federal government believes that enforcement could yield $7 billion during the next decade.

Among the most often misclassified workers are truck drivers, construction workers, home health aides and high-tech engineers.

As an independent contractor, there is no employer-employee relationship with the person or company that you are doing business with.  The independent contract is a consultant who performs specific duties that the consultant is capable of performing.

At the start of the relationship, it is absolutely vital to have an independent contract agreement (also known as a consulting agreement) drafted to protect both parties.  The consequences of failing to establish a consultant as an independent contractor can have dire tax consequences.

In your independent contractor agreement, it is important to establish that the consultant performing the services  is not under the control of the employer.  In addition, the employer may not directly supervise the consultant.

When it comes time to draft an independent contractor agreement, you should focus on the fee for services rendered and provide a complete description of the services that are to be provided.

According to IRS, you should be aware of the following common law factors when it comes to providing evidence as to degree of control:

Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?

Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)

Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

If you have a legal question regarding independent contractors in New York, contact the Law Office of Frederic R. Abramson at 212-233-0666

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