A sad state of affairs . . .

[Tim C]

On June 18th the Oregon Department of Labor ruled that all sports officials in Oregon are employees of local associations.

In spite of the fact that each year each official signs an official form noting that he is an independent contractor and despite the fact that all officials receiving more than $600 receive a 1099 the ODL based their final judgment on the concept that umpires receive a "paycheck" of all game fees from a local group.

Oregon has already rules that Officials are independent contractors under workman's comp insurance programs. We do not pay in nor do we qualify for workman compensation claims if injured during a game.

The Oregon School Activities Association and the Oregon Athletic Officials Association have appealed the ruling and have asked to appear before an Administrative Law Judge for a second opinion of this ruling.

What does it mean if you are made to be an employee?

Well first 2.4% of your check will be withheld and applied to Unemployment taxes.

Worse than that the Oregon Department of Labor can, in retrospect, audit all sports associations in the state and bill for unpaid Unemployment Taxes (with penalty and interest) back an undetermined length of time.

Because the Oregon Legislator meets every other year NOTHING can be done through that body until 2011.

While this plays out the OSAA has stepped forward to pay all fees, fines and penalties for any current official that is caught in this dilemma.

While Maryland just based legislation to assure that officials will be considered independent contractors both Oregon and Washington appear to be headed the opposite direction.

Sad,

[bossman72]

very sad. that's incredibly stupid - nobody makes a living being an official, so there is no way an association should be taxed. this is awful.

[mbyron]

I think right now states are panicking about revenues. Anything that promises a net positive revenue stream is fair game. It doesn't matter if it's a bad idea, unconstitutional, will be overturned in the long run, or any other consideration. They need cash now.

Your state association has done the right thing. They'll cover their "employees" (ha) while the legal situation clears up. And it will come right in the end, since the ODL's ruling is obviously wrong. So I wouldn't get too bent out of shape over this.

[ozzy6900]

Not surprised, Tim. It's going to be hitting more States as the budgets are all in need of funding. Here in CT, the HS Varsity pay has topped $100 per game so it's only a matter of time before the State sees this as a source of income for them.

I will retire when this happens - I will not forfeit any of my fee!

[Forest Ump]

So now your local associations will have to carry workers comp for each umpire. The rating modifier will be sky high due to umpire injuries on the job. The paperwork and cost will be emormous. Umpires will have to have therapy after each injury before they can umpire again. Looks like a real nightmare starting in Oregon.

[jdmara]

Do your associations pay the officials or do the schools directly pay the officials? Here the schools pay the officials. The association does not touch any money besides dues from officials and school scheduling fees.

-Josh

[Rich]

Well, another advantage to the WI "system" is that we're hired directly by the leagues (for conference games) and by the home schools for non-conference games.

I've always wondered how an association can collect money and pay umpires directly from a central account and still try to consider the umpires independent contractors. I mean, the association decides who works the good games, what criteria is used for advancement, etc. Not trying to be a jerk here, but how are those umpires NOT employees under the law?

[SanDiegoSteve]

Wouldn't surprise me if that miserable Arnold would do that here. He's already cut everything in sight. When he gets wind of this, look out Cali.

[Kevin Finnerty]

If Schwartzenegger would simply work to legalize three of his famously favorite vices--weed, gambling and whores--his state would just be floating in dough.

[PeteBooth]

[QUOTE]

Originally Posted by Tim C

On June 18th the Oregon Department of Labor ruled that all sports officials in Oregon are employees of local associations.

Tee it will be interesting to see how many officials (in all sports) retire for the HS season. I am pretty certian you will keep us posted.

How is Oregon set-up for Summer / Fall ball?

What I can envision is that there is no umpire association at all. The coaches simply have a 'list of umpires" and call officials from this list and pay them "under the table"

Summer Tournaments would most likely suffer big time because when a tournament is run the Pres simply calls the association and says I have a 100 games this weekend what's the cost and sends in a check.

if there is no association to call, the torunaments could turn into a mess.

Personally if that type of law passed here in NY my officiating days are over.
In addition to P/R taxes you have Federal taxes and in my case State taxes as well.

A $50.00 game Fee would turn into a net of about $30 - $35.00 taken into account taxes. Also, when you add your total officiating income to your regular salary that would most likely put you in a higher tax bracket.

Also, when you are an employee as opposed to a contractor you are limited in what you can write-off

Another ploy by some states to increase revenues. The government can bail out GM and the banks with billions of dollars and in the same breath "stick it" to officials making a marginal Fee.

You are correct very sad

Pete Booth

[Welpe]

Originally Posted by PeteBooth

Also, when you add your total officiating income to your regular salary that would most likely put you in a higher tax bracket.

You aren't doing that already?

Rich, you do raise a good point IMO. The amount of control that an association can exert over how an official does his job in some areas does seem to blur the line between independent contractor and employee.

[Rich]

Originally Posted by Welpe

You aren't doing that already?

Rich, you do raise a good point IMO. The amount of control that an association can exert over how an official does his job in some areas does seem to blur the line between independent contractor and employee.

Blur? I think it obliterates it. Add in the typical association "restraint of trade" nonsense (officials aren't free in many places to work for the association and also for other groups or for people not willing to pay the association going rate), and I can't possibly understand why officiating associations can have it the best way, from every angle, simply for them?

If I want to work HS baseball in many states, I have no choice but to join the local association, pay whatever due they tell me I have to pay, pay the assigning fee, wear only what uniforms they allow, including association-only hats, etc., etc. How does this make me an independent contractor?

[PeteBooth]

[QUOTE]

Originally Posted by Welpe

You aren't doing that already?

Yes but being an independent contractor I also can write off expenses which i could not do if I were an employee.

Pete Booth

[Welpe]

Ah, I see what you mean now. Yes, that is a good point. Thank you for the clarification.

[Kevin Finnerty]

The only reason we are considered independent contractors is to save the associations a whole lot of cumbersome accounting.

We're employees of the associations.