Filter Queen Healthmore, Sound Filtration, Eastern Filtration, Country Air Systems For those of you that have may been pressured to work as an independent contractor for Filter Queen, take note Seattle Nationwide
As fomer employeed (oops "independent contractor") Filter Queen should do some reading of sections 1 and 2 of the Restatement (Third) of Agency. As an idependent contractor you have a fiduciary responsibiliy. For the case of Filter Queen this means "A person having a duty created by his or her undertaking to act primarily for another's benefit in matters connected with the undertaking". At the same time, a fiduciary relationship, means that the relationship involves trust and confidence.
In section 2 of the Restatement (Third) of Agency defines and independent contractor as:
"A person who contracts with another to do something for the owner (or employer) but who is not controlled by the owner (or employer) nor subject to the owner's (or employer's) right to control with respect to the independent contractor's physical conduct in the performace of the undertaking."
This means that if you are cleaning the office, being threatened with not getting sales calls (if the owner has a telemarketing center) if you don't perform a certain task, and you are being forced in the morning for training sessions, then you could be an employee.
Filter Queen should get busy and clean up their mess about their "independent dealer network" or one of these days someone presents them with a class action lawsuit. There is a reason why Filter Queen hires reps in Washington and not Oregon because Oregon law doesn't recognize this form of employment (after all they do collect state income taxes). Many other states should get busy and do the same.
If Filter Queen built high quality stuff that thay can stand behind (I do like the product) then it can compete with Dysan on the showroom floor of Best Buy rather than wasting time, money, and resources on foolish sales offices that may even dub as an MLM system (when utilized with branch offices) with high pressure sales tactics that make the company and who it represents as undesirable people to do business with. Especially when it involves a $3000 vacuum cleaner with a high interest rate to buy (if your credit is bad) that can be bought on EBay for $700.
Those that are sitting in on a sales presentation, would do the rep a big favor by directing them to this blog.
3 Updates & Rebuttals
Tim
Lebanon,Oregon,
It doesn't do any good to complain
#4Author of original report
Mon, November 17, 2014
While I agree with your assessment of the product line, these offices are independently owned and Filterqueen has no control over the merchandise that they offer. The problem I have is that these dealers do not go through a background check before they enter a strangers home. One of these something will happen that will cost the company dearly in financial penalties that they will take responsibility for thier own actiions instead of pawning off on those that are naive over how ethical business practices work in the first place.
Tim
Lebanon,Oregon,
The IRS definition of an independent contractor
#4Author of original report
Thu, August 14, 2014
For those of you who wish to denfend the "independent contractor" agreement that you signed to work for a Filter Queen distributor, this the definition of an "indpendent contractor" according to the IRS webite:
Independent Contractor Defined
People such as doctors, dentists, veterinarians, lawyers, accountants, contractors, subcontractors, public stenographers, or auctioneers who are in an independent trade, business, or profession in which they offer their services to the general public are generally independent contractors. However, whether these people are independent contractors or employees depends on the facts in each case. The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. The earnings of a person who is working as an independent contractor are subject to Self-Employment Tax.
If you are an independent contractor, you are self-employed. To find out what your tax obligations are, visit the Self-Employed Tax Center.
You are not an independent contractor if you perform services that can be controlled by an employer (what will be done and how it will be done). This applies even if you are given freedom of action. What matters is that the employer has the legal right to control the details of how the services are performed.
If an employer-employee relationship exists (regardless of what the relationship is called), you are not an independent contractor and your earnings are generally not subject to Self-Employment Tax.
However, your earnings as an employee may be subject to FICA (Social Security tax and Medicare) and income tax withholding.
Your services are controlled by an employer. They tell you what sales calls to make and they contol the shots since you legally have their equipment. The only legal standpoint that they can stand behind with those contracts is your responsibility for thier equipment.
You are a contracted employee for the distributor and your wages are subject to witholding.
Since living in Oregon, I have never seen one Filter Queen dealer or distributorship even try to setup shop in this state. The laws are pretty clear about the definition of what an employee is in the state of Oregon. Since they do collect state income taxes on wages, they are accountable for their independent contractors/employees activities and they can be audited at any given time. As a result, they set up distributorships in Washington state.
Don't waste your time defending their sales practices. They are great products that can stand up to their own weight on the shelves of Best Buy and Wal Mart (like every cleaning machine does) without the foolishness of a middleman and the high interest rates that they try to stick you with. If your selling them door to door then you should have enough sence to know better.
That is unless your seeing your probabtion officer or you are out on work release selling them to the public. After all the dealerships do not do background checks on their employees or representatives.
Tim
Lebanon,Oregon,
The IRS definition of an independent contractor
#4Author of original report
Thu, August 14, 2014
The definintion of an independent contractor as defined by the IRS:
People such as doctors, dentists, veterinarians, lawyers, accountants, contractors, subcontractors, public stenographers, or auctioneers who are in an independent trade, business, or profession in which they offer their services to the general public are generally independent contractors. However, whether these people are independent contractors or employees depends on the facts in each case. The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. The earnings of a person who is working as an independent contractor are subject to Self-Employment Tax.
If you are an independent contractor, you are self-employed. To find out what your tax obligations are, visit the Self-Employed Tax Center.
You are not an independent contractor if you perform services that can be controlled by an employer (what will be done and how it will be done). This applies even if you are given freedom of action. What matters is that the employer has the legal right to control the details of how the services are performed.
If an employer-employee relationship exists (regardless of what the relationship is called), you are not an independent contractor and your earnings are generally not subject to Self-Employment Tax.
If you are being told where to visit a customer by an employee of the company that you are represented by Filter Queen, you are an employee. Unless you can freely go on your own calls, then you are an independent contractor. Since you signed a contract to use the equipment, the sales office that you work for has control over where you go or what you do.
Most Filter Queen independent sales offices operate a call center that dispatches calls to the contractor. They have crossed a fine line that has been made very clear this year on the IRS website.
Filter Queeen distributor offices do not exist in Oregon. Since Oregon collects taxes on wages earned, this model doesn't even qualify as an employer for the sales representatives. This explains why the company maintains offices in Vancouver.