Welcome to the latest edition of The Contract Employee's Newsletter -- the free e-mail newsletter designed to bring tips and news about the world of Contract Employment right to your e-mailbox.

You are receiving this issue of The Contract Employee's Newsletter because:

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Details on subscribing (and unsubscribing) are at the end of this newsletter.
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Thank you for your continued support. The Contract Employee's Newsletter has over 5000 subscribers, and the list is growing by approximately 500 names a week. At this rate there will be over 30,000 readers of the Contract Employee's Handbook and Contract Employee's Newsletter by the end of the year.

Can you imagine the IMPACT on the industry when over 30,000 contract employees start asking their agencies: "Hey! What's the bill rate?" Can you imagine the BENEFIT to contract employees when agencies everywhere come to realize that open disclosure of their fee schedule actually gives them a competitive advantage over those secretive scalawags and claim jumpers hiding in the bushes?

May the Fairy Godmother of all contract employees sit on you shoulder in 1998. And may she whisper nothing but sweet success in your eager ear.
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If you have never before visited The Contract Employee's Handbook please do so now. The Handbook is a rich source of free information on W-2 contract employment. Whether you are already a contractor, or possibly a permanent employee facing the prospect of being downsized, you are sure to benefit from a visit to The Contract Employee's Handbook.

If you find the information in The Contract Employee's Handbook useful, by all means tell your friends and colleagues. I invite you to follow the instructions at the end of this newsletter, and add their e-mail addresses to the mailing list. Several people have reported that they learned of the Handbook from a flyer that someone posted in their workplace. You might consider doing the same. There is a suitable flyer in the "Tell a Friend" section of the Handbook. Or, click these links and print the results:
-- Serious Flyer
-- Funny Flyer
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FOREIGN CONTRACTORS -- STRANGERS IN A STRANGE LAND

I recently received an e-mail message from an Indian national working in the United States on an H-1B visa. He wrote: "My agency never revealed the amount being billed to the client. They pay me $18/hr. I learned they bill the client $100/hr. What is the solution for this problem?"

The solution, my friends, is open communication. Whenever possible, compare notes with fellow contractors on bill rates, pay rates, and how your agencies are treating you. Open communication is key! Silence only plays into the hands of those recruiters who would take advantage of your inexperience.

Ask contractors doing the same work as you what the PAY RANGE is for someone with your skills. Share with them what YOU are being paid, and ask them if they think it is a fair rate. They may even tell you what they make. But don't ask directly unless you know them well. It is, after all, a personal question.

Agencies will council you to NEVER discuss your pay rate with your client-side supervisor. How silly! I am aware of one agency that lost its approved vendor status with a HUGE utility because it made a practice of billing high and paying low. Clients don't want their contract workers to leave prematurely to take better paying assignments, especially when they are already paying top dollar to the contractor's agency. In the case of the Indian national mentioned above, he followed my advice and spoke with his supervisor. The client is now going to bat for him because they don't want to lose his services. Speaking with the client is not arm twisting, it is simply being assertive, asking only for what is fair.

Foreign nationals, especially those from less developed countries, are often unfamiliar with the rates paid to technical contractors in the United States, and they may be accustomed to working in their home country for much less than prevailing U.S. rates.

[Sidebar: Technical contractors of any nationality will want to visit Janet Ruhl's Computer Consultant's Resource Page, http://www.realrates.com/, to view current pay rates reported by computer consultants from around the United States. Janet not only lists rates, but she analyses the results by discipline and region, and reports on industry trends.]

Armed with a passport, good technical skills, a job offer, and an H-1B visa sponsored by an American recruiting firm, foreign nationals arriving in the U.S. frequently accept unreasonably low pay rates from agencies seeking to exploit their unfamiliarity with the American job scene.

This situation is aggravated by the "code of silence" promulgated by full service agencies, and reinforced by such luminaries of contracting as Herman Holtz, himself (http://www.contractpro.com/ archive/ may97/ pages5/ inside.htm). Only by sharing information about pay rates and bill rates can we be assured that we are being treated fairly by the agencies who hold the leases on our mortal bodies. Certainly, eighteen dollars an hour on a one hundred dollar an hour bill rate is nothing short of indentured servitude!

Another aggravating factor is the belief by many foreign nationals that they may lose their H-1B visa, and be forced to return to their country of origin, if they upset their sponsoring agency. But that belief is unfounded. Foreign citizens may hold multiple H1-B visas, and contract through multiple agencies. They are not bound to work exclusively for the agency that sponsored their entry into the United States. In fact, they can "fire" their sponsoring agency if they don't like the way they are being treated, and go to work for any employer of record they choose providing they notify, and receive approval from, the Immigration and Naturalization Service.

(A note of caution: Foreign workers should secure a NEW assignment and NEW sponsorship through a different agency BEFORE they dump any scamsters who have been taking advantage of them. The INS only gives H-1B visa holders a grace period of 10 days between assignments. The services of an immigration attorney are highly recommended in situations like this, and can help convince the scamsters to let you move on in peace.)

A technical contractor from Canada posed a different question. He asked: "As a Canadian citizen, which is the best and easiest way to work in the States? Should I be incorporated in Canada?"

Fortunately, Canadians, like Mexicans, are accorded a special status under the North American Free Trade Agreement, http://www.grasmick.com/nafta.htm. Canadians are now able to obtain a temporary non-immigrant visa called the TN (Trade NAFTA). This work permit can be obtained, with no application form and minimum paperwork, within minutes of arriving at a port of entry. The filing fee is $50 U.S. The TN visa must be renewed annually, but there is no maximum time cap on the duration of stay.

Canadians who qualify for TN status usually also qualify for H-1B status. The H-1B, however, has a maximum time cap of two three-year terms.

Both the TN visa and the H-1B visa are issued to temporary EMPLOYEES. Self-employed professionals, including 1099 and incorporated independent contractors, are precluded from obtaining TN-1 status, and the INS has advised its field offices that the E-2 "treaty investor" classification may be the appropriate alternative for these types of Canadian professionals, http://www.grasmick.com/invest.htm. The E-2 is complex and more difficult to qualify for. For this reason, Canadian contractors seeking work in the U.S. are generally advised to work as W-2 contract employees through a third party employer of record.
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INTERNET RESOURCES

A brief search on the Internet using such key words "h1b" and "visa" turned up the following web sites that feature information on immigration and temporary work visas. I would really like to hear of additional internet resources in this area. SEND LINKS!!! If you know of any especially good web sites please e-mail them to me at jziegler@cehandbook.com.

*** United States Immigration and Naturalization Service ***
Highlights
http://www.ins.usdoj.gov/stats/annual/fy96/977.html

An overview of immigration trends.

*** US State Department *** Visa Services
http://travel.state.gov/visa_services.html

Information straight from the horse's mouth, so to speak. Click first on "Temporary Workers" and "TN Visas: Professionals Under NAFTA". Then click on additional links that seem appropriate. However, I would avoid the link to "Antiterrorism and Effective Death Penalty Act of 1996" -- It's REALLY boring.

*** International Center at Indiana University ***
H-1 VISA APPLICATIONS -- GENERAL INFORMATION
http://www.indiana.edu/ ~intlcent/ resources/ ic/ visa/ visa.html

An excellent overview of the H-1B visa application process behind the link called "H-1 Professionals".

*** Richard Maney & Associates ***
UNITED STATES IMMIGRATION VISA GUIDE
http://www.richardmaney.com/visa-guide.htm

The UNITED STATES VISA GUIDE outlines some of the most commonly sought visa categories, together with the characteristics of the respective visas, including the H-1B temporary professional visa that allows t-based visas or university admission in the United States. Their evaluations are submitted to the Immigration and Naturalization Service as evidence that a skilled temporary worker meets all the criteria set forth by current INS regulations.
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HEADING OVERSEAS?

So much for foreign nationals who want to work in the U.S. -- What about Americans who want to work overseas? Did you miss out on Junior Year Abroad in college? Thought the Peace Corps was too uncivilized? Contracting abroad offers a wonderful opportunity to "see the world", and get paid well for doing it! Here are a few "gateway sites" featuring links relating to off-shore employment and contracting opportunities:

*** Contract Crossroad ***
http://www.giantindex.com/crossroad/
This is a British site specializing in the UK and Australian contracting scene. Filled with useful and informative links to agencies, professional resources, contacts for professional networking, discussion forums, etc. Lots of good stuff here.

*** Freelance Informer ***
http://www.freelanceinformer.co.uk/
A bonanza of information about contracting in the UK, and anywhere else for that matter. Contains detailed descriptions of the local contracting scene, business requirements and cultural tips for more than 25 countries around the world. A quality resource site!

*** Iowa State University ***
International Job Opportunities
http://www.public.iastate.edu/~careerserv/intl.html
Links. . .

*** Duke University ***
International Resources on the Internet
http://www.duke.edu/~lpmaskel/intl_hrefs.html
A very rich site with lots of useful links.

*** Jan De Decker's JED:SP Contractor's Page ***
http://www.jedsp.com/3co/
Click on "General Info" and "Newsgroups". A good source for information on offshore contracting.

*** The UK Computer Contractor's Handbook ***
http://www.surerange.com/handbook/
You can download a 100-page book on contracting in the UK. Also, lots of links for off-shore contracting.

*** Janet Rhul's Computer Consultant's Resource Page ***
Recommended Links
http://www.realrates.com/links.htm
Includes some links for overseas contracting.

*** Net Contractor Search ***
http://www.demon.co.uk/syntaxis/
Many areas of interest to computer freelancers, contractors and consultants worldwide. For example, just enter the keyword "Europe" and see what happens!

Whether you are a foreign national seeking assignments in the U.S. or an American citizen seeking opportunities abroad, these sites should get you started in the right direction. -- JRZ
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If you can arrange it, I recommend The Contract Employee's Workshop. The cost is just $125, which as a savvy contract employee you will probably earn back from the increased differential in your paycheck in just the first few hours on your next assignment. Although based in the San Francisco area, I will travel outside Northern California to give Workshops to groups of 40 or more paid participants. To those who organize a "remote" workshop I offer two free admissions as compensation for your effort.

The Contract Employee's Workshop is a hands-on, in-your-face, no-holds-barred expansion of the principles and methods revealed in The Contract Employee's Handbook. Learn first hand the secrets your friendly commissioned headhunter will NEVER tell you . . . and why! Learn why you don't have to be an independent contractor to earn twice as much as most other W-2 contract employees . . . and how!

The Contract Employee's Workshop is also available for corporate outplacement training, and I welcome inquiries from corporate HR departments.

You can find additional information on The Contract Employee's Workshop at the On-Line Registration Page of The Contract Employee's Handbook.

Workshops are scheduled for the following locations and dates:

• San Jose, CA -- January 17, 1998
• Santa Clara, CA -- January 31, 1998
• Walnut Creek, CA -- February 14, 1998
• San Francisco Airport, CA -- February 28, 1998
• Mountain View, CA -- March 14, 1998

. . . Or, schedule a workshop anywhere in the USA.

The Contract Employee's Handbook and The Contract Employee's Workshop put YOU in charge of your own career as a contract employee. Dungaree Dan says: "Check'em out!"
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Wishing You Happiness, Success and Prosperity,

James R. Ziegler, Ph.D.
Author and Webmaster
The Contract Employee's Handbook
jziegler@cehandbook.com