
It has come to my attention that Mesa Detection, like some other security companies, classified their employees as independent contractors. The informant said that he made a complaint to the NM Private Investigator's Board and then Mesa Detection reacted by "employing" the people who were already employees. I like to call this one the "independent contractor" scam. Why would a company do this? There are many reason and almost all involve money. A company can sava a substantial amount of money on it's company matches for employment taxes, it can save money for worker's compensation insurance because it isn't required for independent contractors and it wouldn't license independent contractors witht he state. It is a very simple minded scam and there is a long history of people/companies trying to do this same thing.
The IRS puts out the following information on how to determine the status of an employee:
To stay out of hot water with the IRS, be sure the workers you classify as independent contractors meet the IRS definition of an independent contractor. The IRS has a 20-point text its auditors use to determine the proper classification. Here's a list of the some of the major points:
Who has control? A worker is an employee if the person for whom he works has the right to direct and control him concerning when and where to do the work. The employer need not actually exercise control; it is sufficient that he has the right to do so.
Right to fire. An employee can be fired by an employer. An independent contractor cannot be fired so long as he or she produces a result that meets the specifications of the contract.
Training. An employee may be trained to perform services in a particular manner. However, independent contractors ordinarily use their own methods and receive no training from the employer.
Set hours of work. Workers for whom you set specific hours of work are more likely to be employees. Independent contractors, on the other hand, usually establish their own work hours.
Report IRS Tax Fraud! (click for link)
Mesa Detection is no stranger to employee pay discrepancies. Click this LINK to view an earlier post that I worte concerning Mesa Detection being fined over $100,000 by the US Department of Labor for wage violations.
All security guards must be employees of the security company. There is no allowance in the law for independent contractors! See below for New Mexico Laws:
“private patrol company” means a legal business entity, the location of which may be within or
outside of the state, including an independent or proprietary commercial organization that provides private patrol operator services that are performed in New Mexico and the activities of which include employment of licensed private patrol operators or security guards;
FF. “security guard” means an individual who is registered to engage in uniformed or nonuniformed
services under the direct control and supervision of a licensed private patrol operator or a private patrol operations manager to perform such security missions as watchman, fixed post guard, dog handler, patrolman or other person to protect property or prevent thefts.
On or after July 1, 2007, every individual seeking employment or employed as a level one security
guard shall file an application for registration with the department.
Report "independent contractor" Fraud to the NM Private Investigator Board! (click link)
The New Mexico Worker's Compensation Administration has something to say about this issue in New mexico State Law:
52-1-2. Employers who come within act.
The state and each county, municipality, school district, drainage, irrigation or conservancy district, public institution and administrative board thereof employing workers, every charitable organization employing workers and every private person, firm or corporation engaged in carrying on for the purpose of business or trade within this state, and which employs three or more workers, except as provided in Section 52-1-6 NMSA 1978, shall become liable to and shall pay to any such worker injured by accident arising out of and in the course of his employment and, in case of his death being occasioned thereby, to such person as may be authorized by the director or appointed by a court to receive the same for the benefit of his dependents, compensation in the manner and amount at the times required in the Workers' Compensation Act [Chapter 52,Article 1 NMSA 1978].
Report Fraud! (click link)

New Mexico Security Guards need to stop getting scammed. There are plenty of companies that operate illegally or don't follow all of the proper regulations. Guards should really consider this prior to continuing employment with such firms. Don't be stupid!
What would happen if you were injured on the job and your company had no insurance to cover the injury?
What would happen if you were inspected by law enforcement for your license, didn't have it, and were taken to jail?
What happens when it is time to pay taxes and you haven't withheld anything out of your checks to pay the IRS? What about retirement? The company is supposed to pay money into IRS taxes that guarantee Social Security, Medicare and Unemployment Insurance.
Security Consumers and Clients need to stop being scammed! The client,building owner or property owner will become liable if its security company didn't do things the right way and obtain the proper insurance, etc. Property owners need to verify information such as:
- Guard License, training certificate and criminal background check, employment status, usage of personally owned vehicle on client property
- Company insurance (verify with agent), policy for hiring independent contractors, company state licenses
- Litigation history, reputation and a "Google" search!
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