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Comment by practicalpants | Hacker News Reader

This is probably not the right vehicle to ask 'Am I being treated fairly?', but I think I will anyways. The startup is pre Series A, I'm the first non founding/non executive level engineer, I'm technically a contractor but treated pretty much exactly like an employee (I know that's a whole separate thing), I'm not the most experienced engineer, i.e. last year at my prior job I was an intermediate level but this year I would be considered senior at most organizations, I get a decent hourly rate, it's 95% remote, and my equity percentage is... .25% with four years of vesting.

I could be wrong, but I've come to the conclusion that after dilution and taxes, any thing short of a billion dollar exit isn't going to be compensatory for my efforts. I don't know how correct my conclusion is, and whether I should try negotiating for more.

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A few points; .25% seems low but; a) How close is you hourly rate to what you would get normally?

b) Are you learning tech that will set you up to make big money?

c) Are you gaining insight about the industry that will set you up to be a co-founder?

Interesting points, thanks for your comment.

a) It's actually about $15-20 an hour less going off of my last job. I do consider it extra compensation that they are remote friendly, because I got to do some world traveling while working and they were fine with it. But now I'm back home in the Bay (...but also considering traveling again to make it worth my while).

b) Nope, just web stuff I'm already used to doing. The CTO at least is talented so I have learned from him.

c) Potentially. So far no specialized insights into opportunities for new players in the space. Those insights may or may not come.

Remember they're saving 6.75% of your costs by keeping you as a contractor instead of a W2. And they're treating you as an employee, it sounds like.

In some states that's not even legal, even if you willingly agree to it, because it's considered an abusive employee relationship and tax evasion (for instance, Massachusetts.)

Worse, for the company, is that unless your arrangement passes various tests (e.g. do you have multiple clients? Who and how decides what you're going to work on, etc.), the IRS can decide you really were an employee and hit the company for that 6.75%, withholding for all of it, and interest.

Normally you have to go through a body shop to get around this (the Senator who was responsible for this change in 1986 seemed to have been working on the behalf of some big ones in his state).

I think the working and traveling part is cool. I am not sure if you can put a price on that.

You're right, with the caveat that you did accept the offer :)

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