Bingo!
ICs normally would have their own contracts that they present to a prospective client. If a MSC presents the contract, work instructions, when/where/how the work is to be done, that is similar to EE (employee) which would be subject to Federal minimum hourly wage law.
What's more, specific "tools" are required to do many of the jobs or MSs won't be offered the work.
I know a number of people with EE status that work with minimal to no supervision or work in remote/rural locations -- that does not make them ICs. Consider a "one person" office EE where the boss is rarely present, or a "road warrior" where the EE office is his/her vehicle, often there's not a lot of daily supervisory oversight, but the person is still an EE.
MSs charging MSCs for additional time for services rendered is a very good idea, including travel (mileage) for longer distances. I would suspect MSCs would shorten the report and/or lessen the requirements of the shop if they had to pay additional costs for ALL services rendered. 
Knowing the profit margins that these MSCs make, it seems shameful what they pay to MSs, and I assume most MSs are on a fixed budget of some sort.
Seems MSCs are walking a fine line. 
Insightful scoop shoppinalong.
shoppinalong Wrote:
-------------------------------------------------------
> This is an interesting thread.
> 
> [
www.mysteryshopforum.com]
> =7
> 
> Having just spent a couple of hours reading all of
> it...some lightbulbs went off -or is it on?
> 
> First of all,all the authors here are literate,
> very good writers, good grammar and punctuation
> which obviously makes you valuable to the MSC's.
> But some seem to have developed a victim mentality
> such as: "The MSC's have all the power". Really?
> 
> Second - those $3 and 4 and $5 shops....it
> suddenly occurred to me whose taking them: college
> students and seniors on very low social security;
> TO EAT.
> Remember the stories about Seniors eating dog food
>  because it was all they could afford... certainly
> accepting a a $4 or $5 job and a free meal is
> better than dog food....so maybe we shouldn't
> begrudge those who are taking those jobs.
> 
> And then - LIGHTBULB - that's why some of the
> MSC's are trying to get shoppers to sign up with
> EIN's - as if we have our own companies, a
> subcontractor - then they think the govt. can't
> say "you are paying this shopper/ quasi
> Independent Contractor less than what would be
> minimum wage for the hours you are requiring for
> that work" because if it's your own company,and
> it's up to your company to make a profit or not;
> it becomes profit and loss but not a matter of not
> paying even minimum wage. An Independent
> Contractor is usually paid a set amount for the
> day or days a job takes: such as $75 or $80 a day
> or more to complete a task. The mileage may be
> included or additional pay.
> 
> And something tells me - another lightbulb - that
> that Forbes article didn't do the MSC's any good -
> it showed a spotlight on MSC's and must have
> caught the attention of the IRS or other
> governmental agencies who were trying to figure
> out how MF was grossing $53 million...and
> discovered they were using "Independent
> Contractors" who they were paying $2 , $5, - or
> not paying at all.  That and there may have been
> complaints to some govt agency by some "shoppers".
>  
> 
> Put it all together and it put a spotlight on
> Mystery Shopping Companies, their profits and
> their quasi "Independent Contractor" contracts...
> 
> And the MSPA and Jobslinger and some other
> companies have the nerve to post big notices to
> Shoppers to "help stop the government from taking
> away your Independent Contractor status which will
> negatively affect the industry" !!!!
> 
> What it will negatively affect is the MSC's bottom
> line - dollars. If Shoppers are not classified as
> Independent Contractors the MSC's will have to pay
> Social Security, FICA, other taxes, horror of
> horrors maybe even some benefits.  The MSC's are
> making millions because they are underpaying
> shoppers and getting away with having to pay no
> taxes for employees, benefits, etc.  
> 
> As someone indicated, when you're offering $2 and
> $4 and $5 it's akin to slave labor..
> 
> My personal impression is that the govt. or some
> govt consumer organization may be tryng to scare
> them into paying decent amounts for the work of
> the Independent Contractor Shoppers - or on the
> other hand the govt. needs the money for Social
> Security and other taxes the employer would have
> to pay if the govt. can prove we are not
> Independent Contractors.  And actually I think
> they can.  An Independent Contractor is told go
> speak to so and so but is not told in detail, you
> must do this,this and this at this specific time; 
> ask everything on this form, go there at this
> specific time and have the report in at this
> specific time. they are also not instructed what
> to write or how to write on chat forums.
> 
> I haven't been a 9 to 5'er in many years and would
> not like to go back to that - on the other hand I
> wouldn't take those $3 , 4, 5, $7  jobs
> either..and only the $10 if it was down the same
> street I'm on.
> 
> If you organize as a group - union like - and
> demand a certain pay, I dont think you will be
> IC's anymore. 
> 
> But Shoppers ARE organized.  This Forum is an
> organization.  I think I read somewhere there are
> about 1200 to 1500 people registered here.  That
> doesn't say how many dont register but come and
> read. The MSC's present us with contracts, which
> apparently many of them don't live up to.
> 
> Perhaps we, EVERY mystery shopper, should
> individually present each company with  (the same)
> a Mystery Shopper contract with clauses which
> states: "if payment for services rendered is not
> received for my shopper investigation and report
> within (14) or (30) days, I agree to pay 
> Mr./Ms./Mrs. ____  penalty of $____  and legal
> fees. 
> 
> I was astounded when I read one person was told
> "you'll get paid when we get paid"!  That is what
> I suspected. But that's not how business works in
> any other
> world.  If you dont pay your water or electric
> bill, you cant say to the company, 
> "You'll get paid when I get paid"  They turn off
> the spigot and the electric.
> 
> By the way, it's crazy that they can refuse a
> report and refuse to pay. You put the time in,you
> report what you saw, they pay, whether they dont
> like that you told the truth whether it be
> negative or positive for their client. Period. 
> They want additional information, an Independent
> Contractor WOULD CHARGE for additional work to
> supply additional information.
> 
> I suspect that would get their attention.
> Maybe someone should bring these alternative
> contracts up to this President of the MSPA at that
> conference.
> 
> You want the forum to grow larger? You want to
> have a semi-organization?  Ask 
> Jacob to make sure The Mystery Forum appears at
> the top of any Google search for Mystery Shoppers,
> mystery shops, secret shoppers,etc., shoppers
> needed,etc.  There are ways to do it. 
> 
> Go to other forums yourself and brag about the
> wonderful informative forum you found where
> shoppers themselves talk about which Mystery
> companies are good, which pay and which dont pay,
> which are worth it and which aren't and print the
> URL to here:
> [
www.mysteryshopforum.com]
> =7
> 
> The internet is the greatest invention for
> organizing there ever has been. 
> 
> You'll excuse the suggestions but I tend toward
> action and problem solving.
> 
> Just sayin'.