ITAA Files `Friend of the Court' Brief in Support of Microsoft Temporary Worker Case

Business Wire, June 3, 1999

ARLINGTON, Va.--(BUSINESS WIRE)--June 3, 1999--

The Information Technology Association of America (ITAA) announced that it has filed a friend of the court ["amicus curiae"] brief in support of Microsoft Corporation's petition for a rehearing by the full Ninth Circuit Court of Appeals of the Vizcaino vs. Microsoft case.

Eight other trade associations and industry organizations joined in the motion. The brief follows the sweeping May 12 decision of a three judge panel of the Ninth Circuit, which would reclassify thousands of temporary workers and independent contractors employed by Microsoft Corporation since 1986 as permanent and eligible for benefits such as stock options.

The brief argues that the decision relies on a "dual employer" rationale that is "unworkable and unprecedented in the employee benefits context." Additionally, the brief states that the Court's decision fundamentally guts the common law test of employment status. The Ninth Circuit's decision is the first to hold that a person paid a single compensation stream may be considered employed by two unrelated employers. The decision also creates a "presumption" of employment status, instead of using the multi-factor test created under Common Law.

ITAA and its fellow signatories, representing a broad cross section of the information technology and IT services industries, said that the decision of the three judge panel will have significant adverse impact on employees who chose temporary employment; business, in particular information technology firms which rely heavily on temporary staffing services; and the overall American economy.

"To let this decision stand would severely undermine the information economy. It flies in the face of how a growing number of Americans prefer to contract their professional skills to the marketplace," said ITAA President Harris Miller. "We can't have it both ways. In order to remain the leader in the $2 trillion global IT marketplace, we need a legal system that allows flexibility and adaptability for workers and employers."

The decision of the panel was based on an earlier reclassification, for IRS purposes only, of 145 Microsoft temporary employees, hired between 1987-1990, as full time workers. ITAA submitted an amicus curiae brief supporting Microsoft's position in that case, as well.

Joining ITAA's brief were the American Electronics Association, Association of Private Pension and Welfare Plans, Chamber of Commerce of the United States, Information Technology Industry Council, National Association of Manufacturers, National Association of Temporary and Staffing Services, National Technical Services Association and Software and Information Industry Association. A copy of the full brief and motion to file can be found at ITAA's Internet website: http://www.itaa.org <http://www.itaa.org> .

ITAA's 1998 survey on the IT workforce issue, Help Wanted 1998, found 346,000 unfilled jobs for programmers, systems analysts and computer scientists in American companies. ITAA has numerous resources available on its website about the IT workforce issue at http://www.itaa.org/workforce/.> ITAA consists of 11,000 direct and affiliate members throughout the U.S. which produce products and services in the IT industry. The Association plays a leading role in public policy issues of concern to the IT industry, including taxes and finance policy, intellectual property, telecommunications law, encryption, critical infrastructure protection, securities litigation reform, and human resources policy. ITAA members range from the smallest IT start ups to industry leaders in the software, services, systems integration, telecommunications, Internet, and computer consulting fields. Learn more about ITAA and its positions on the issues by connecting to its web site at http://www.itaa.org.