Many thanks to all those who have contacted me to discuss their experiences with Yurcor and other EOR companies. Through the documents that have been shared with us, as well as the correspondences with representatives of these companies, we’re progressing with our plans to seek enforcement of the law and the return of wages to the effected artists. A special debt of gratitude needs to be paid to Justin Cone who exposed our efforts to the readers of his website Motionographer and brought us exposure we never would have been able to do on our own. While I am eager to update you on what has transpired so far, I can only say that we have significant progress and things are looking good. I will continue to update our progress when I can.
I wanted to specifically address the frequent questions that have been raised about what artists can do if they wanted to act on their own to recover the wages that they lost to Yurcor. While its our intention of instigating a class action lawsuit which would cover the United States, some artists are eager to start the recovery process faster than we can initiate the claim. For them, I want to post some information that would be useful.
I’ve been in contact with the Labor Departments of California and New York. (I will contact the DOL of Washington tomorrow and post those results in comments.) Through those conversations, I was told what steps artists should take if they decide they are interested in pursuing action against Yurcor.
Before you proceed in any legal venture of this nature, you must have proper documentation of the transgression at your disposal. This would be copies of Payroll Reports from the EOR that detail the employer tax withholdings for the entire claim you want to file. Meaning, if you worked for a studio for six months under Yurcor, and want to recover the wages withheld to pay the employer taxes, you will need records showing all six months worth of withholdings.
California
To file a claim with the EDD, follow the steps outlined under To Report Payroll Tax Fraud at https://askedd.edd.ca.gov/frmFraudStart.htm.
For the purposes of these reports, you should answer the questions on the Fraud Reporting Form as described:
To which EDD program does your report relate? with Payroll Tax Fraud
Does this report involve fraud by an EMPLOYER, EMPLOYEE, or BOTH? with Employer
In the subsequent form, list how Yurcor is withholding your earnings to pay the Employer Taxes for loaning you out to the visual effects studio. For name of person owning the business, list “Unknown” and leave the Full-Time and Part-Time employees.
New York
To file a claim with the Labor Standards Department of the New York Department of Labor, first have the LS 223 form completed. The form is pretty self explanatory, however be sure to fill out the last few questions accordingly:
25. List the TOTAL amount of Employer Tax withholdings that were withheld from you by the EOR. This is for the entire time you worked for them. It is important that you have the documentation to back up this claim
26. Mark the [Yes] box
27. Its best to list “See Documentation” and be prepared to show invoices for the period listed in the claim.
29. Mark the [Yes] box and write in the following column that the EOR withheld these monies to pay the employer-responsible payroll taxes
With the form completed, call one of the three following numbers:
212-775-3680
212-775-3723
212-775-3880
According to the representative I spoke with, they make three numbers available in case one is busy. All three are answered by the same office. This will begin your claim and the Labor Standards Department will begin action against the EOR to recover your wages.
Under most state laws, employers are responsible to pay Unemployment Insurance, State Disability, State Income and Employment Training taxes for their employees. California’s EDD explains this in their Employer’s Guide (page 6). While Yurcor is most likely paying that on behalf of the artists they loan out to companies, doing so with artist wages is the illegal part.
As always, feel free to contact me with any questions, concerns or continued documentation. We will continue our progress towards putting an end to this illegal and egregious practice that is so prevalent in the visual effects industry.
Wage Theft: What can you do? « Motion Design Association
Nov 01, 2011 @ 14:50:02
Have you been forced to deal with Yurcor? Let us know .. « Organizer's Notes
Dec 27, 2011 @ 14:04:37
Oct 23, 2012 @ 09:56:27
I am currently getting paid through Yurcor. Can you tell me what others have experienced thru Yurcor?
Oct 23, 2012 @ 10:12:03
Hello Todd. My post on Yurcor has gotten a lot of comments that you can read at this link: http://skaplan839.wordpress.com/2011/10/13/the-latest-vfx-scam-get-the-artists-to-pay-the-taxes/
Which company are you working at that is using Yurcor?
Oct 23, 2012 @ 15:37:32
Logan VFX. I wasn’t aware I was paying employer taxes too. That doesn’t make sense.
Oct 23, 2012 @ 20:23:46
It shouldn’t. You’re essentially being ripped off. Yurcor couches it as a win for you, since you get to be an “employee” (which is true, since you’re essentially employed by Yurcor) and a independent contractor since you’re still being ‘loaned out’ (which is totally false).
There are a few other shops in town that use Yurcor. We’re in the process of figuring out the legal avenue for getting artists their rightful wages back.
Oct 25, 2012 @ 08:09:56
I have yet to get my first check from Yurcor. I’m not a fan of the 30-day net, since it ends up really being almost 6 weeks by the time I get a check. I am very anxious about what my first check will look like. I will keep track of your process. I will definitely complain to Yurcor and Logan, if my check is hit hard.
Oct 25, 2012 @ 08:18:02
As far as I’m concerned, monthly salary payments are frustrating to begin with. But, it also smacks of how Independent Contractors are paid, which further muddies this already messy situation,
Its my belief that you’ll be complaining quite loudly to Yurcor and Logan after your first check. From what I’ve been made to understand, there is quite a significant amount taken out.
Apr 30, 2013 @ 11:12:17
Yes, quite a bit has been taken out. As an artist who has been out of work a lot because of outsourcing, I’ve had to take work at studios I know are using Yurcor. Of course, I’m maintaining records to account for the “employer” tax deductions. I look forward to getting back the money as well. Thanks for providing the steps to do this. Much appreciated.