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Ask HN: Typical Startup or Abuse?

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Re: Ask HN: Typical Startup or Abuse?

#121

Earlier quoted context omitted.

Can't you witch to working full-time in your freelancing? I don't know if you can get more clients straight away, maybe (if your relation is good enough with them) you can ask your current clients for work recommendations, bootstrapping even more your full-time freelancing. I don't know the legalities and other related things aside, but I would make a rebellion, although you look in the worst position (you are being…

I do believe life is a good deal of weighing risks and taking them at a period of time. Jumping right off to freelancing would be too uncertain at the moment. Bills come to around $1,500/mo. Freelancing at the moment generates around $900-$1200/mo. But I currently only have the bandwidth to handle 1 or 2 projects per month. On the rebellion side I would not feel ethical doing so. I don't want this guy's business to c…

OKAY, stop right there:

> I don't want this guy's business to crash and burn.

That's fine, you don't have to want it to crash and burn. HE clearly wants it to crash and burn.

While it's your entirely your responsibility for having chosen to stay in such a terrible situation, he's the one who created it in the first place.

He's the one who's betting his business on mistreating people. He's the one who's betting his business on mistreating, most importantly, a single person who holds his business together.

He could have paid you more. He could have fulfilled his promises. He could have hired other people to make you more dispensible, to hedge his bets, to protect his future.

But he didn't. Because he's not a businessman, he's a user. Users don't think "gee maybe I should use THIS guy a little less, to protect myself," they think "WEEEHEE I CAN SQUEEZE A LITTLE MORE OUT OF THIS DUDE FOR NOTHING!"

That's simply unwise.

It's not your place to worry about whether he goes out of business. It's his plan. It's his mistake.

And, after you leave and you've secured your future income, call the IRS on his butt. He is breaking the law and should be punished and switch his business model to something legal.

Don't do it out of vengeance, do it out of concern for future schmucks.

Re: Ask HN: Typical Startup or Abuse?

#123

The really unfortunate things about your situation are: 1. You're probably legally misclassified as a contractor rather than a full-time employee. You should read IRS Rule 87-41 to understand why that is, but the really telling part is that you're carefully managed as to work down to the minute. Dead giveaway - you're an employee. 2. Since you're clearly an employee, you're subject to the protections of FMLA. My favo…

The 1099 versus W-2 gambit is dangerous. He could, in principle, claw back the entirety of the 1099 payments, including whatever you paid on as taxes, then adjust them to a W-2 and pay you back less W-2 taxes. You'd then have to wait until the next tax cycle to get a government refund on the 1099 taxes. Retroactive reclassification of money is a dangerous game unless you have big cash reserves and lawyers of steel.

The IP gambit is potentially career ending. All he has to do is take out a press release that insinuates you may have destroyed his business with lawyers out of purest spite. That press release will hang around on background checks forever.

If you need leverage, go after unemployment insurance. If you were watching the clock, then he should have been paying unemployment insurance on your behalf. The state unemployment bureaucrats are remarkably bitchy and tenacious about it, but the worst case expenses to the company are not enough to start a legal war over. They are, however, enough to get the attention of a paranoid tightwad.

Re: Ask HN: Typical Startup or Abuse?

#124
While it is not something I would suggest in most situations, this guy seems close enough to pond scum to deserve it. (Personal note: at my first programming job, decades ago, I was paid from the owner's wife's personal checking account for the last few months, after one of my company paychecks bounced. While I'm sure there was some tax fraud going on there, I didn't see any reason to cause the guy any more grief than he was already going through.)

After securing further employment, turn him in to the IRS, with as much supporting documentation as possible.

See http://www.bankrate.com/brm/itax/news/20030221a1.asp for a bit more info on the IRS bounty program.

If you would feel guilty about the impact on the other "contractors" at the company, share any eventual payoff with them.

Re: Ask HN: Typical Startup or Abuse?

#125
Lots of good advice here. One thing I would emphasize: think about how you ended up in this (rotten) situation and what you can change about yourself to make sure it doesn't happen again.

You seem to have an extreme case of nice guy syndrome. You don't want to get into a conflict with your boss and you are highly willing to sacrifice yourself to meet his expectations. My guess is you would feel almost physically ill at the idea of "letting someone down" who was "counting on you".

You need to get over that, at least somewhat. If you don't set boundaries, if you don't have a notion of where your wants and needs are more important than what others want and need from you, you'll always be overworked, underpaid, and underappreciated. Nobody respects a pushover, and there are a lot of guys who will use them up mercilessly.

Did I read that you're only 21? If so, hey, you've got lots of time to get this sorted out. But you might as well start now. :)

Closing thoughts: Get out as soon as possible--there's a lot of ways you could go about this. Don't try to "get even", just cut your losses. Don't do anything unethical on the way out. Do not trust your boss if he starts making promises of change or reform. As soon as possible, start saving money and get a cushion built up. You'd be in a much better position now if you weren't living paycheck to paycheck. Good luck.

Re: Ask HN: Typical Startup or Abuse?

#126
You're fucked but this type of situation is not uncommon.

This is how most smallish PR agencies, "digital agencies" and other sorta technical tangential "media" related companies in NYC operate.

You should just get any other sane job as quickly as possible and regroup. Working at Trader Joe's would pay as much and be less of a headache. If you can do any sort of web programming at any capacity you can make 70-120 grand in NYC. I don't know much about PA, but I know there are at least some decent jobs in Pittsburgh.

Re: Ask HN: Typical Startup or Abuse?

#127

Just to give you an idea of where you stand pay-scale wise, I am a student employed part-time. I make about the same as you during breaks when I have the time to put in full-time hours. You are making student money for professional hours.

Perhaps an even sadder comparison, as an intern at a web development company putting in similar hours, I'm making more than double that. You are clearly more experienced and skilled than I am; you deserve much much more.

heh, now you make me wonder if I too am getting shafted

Re: Ask HN: Typical Startup or Abuse?

#130
Unless you have significant equity, you need to immediately negotiate higher pay or leave.

* $500/week is ridiculous. You are way underpaid.

* There is no upside for you:

  * Say the company is successful and starts generating a lot of revenue: you'll have to crawl your way from $500/week to a decent salary. New employees will immediately make more than you.

  * If the company is sold, the founder gets rich and you get nothing.
You've accomplished significant milestones: you've taken a product from idea to production, and you are now managing a team. Play this up in your next interviews, you've earned it. Get yourself a better position with better pay, in line with the skills you've honed and proven over the last year.

Btw, I've founded 3 startups so I'm very familiar with what it's like to pay people little. In every case the counter to the low pay was significant equity - if the startup makes it, you get a share of the prize. If you're not getting equity, you're getting used, plain and simple.

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