SCAD reclassifies student workers as independent contractors, raising legal concerns

SAVANNAH, Ga. (WTOC) - Student workers at the Savannah College of Art and Design (SCAD) say they accepted summer jobs as hourly employees, only to be told weeks before the jobs started that the positions had been changed to independent contractor roles.

The students accepted roles as Pre-College Assistants, or PCAs, who help supervise prospective students during SCAD’s summer programs.

Documents reviewed by WTOC Investigates show the original offer describes the role as a student employee position paying an hourly wage. SCAD later switched to classifying the same workers as independent contractors, who are paid a flat stipend.

One student worker said the change is affecting her wallet. An employment attorney said it may be illegal.

Job duties and original offer

For years, SCAD’s Pre-College Assistants have helped run the college’s summer programs, guiding younger students to classes, supervising dorms, and helping with events.

One PCA, whose identity WTOC is protecting for fear of retaliation, said PCAs are sometimes called “glorified camp counselors.”

“Our job is to get them to their classes, to everything, to make sure they’re waking up,” the PCA said. “And it’s pretty much just like RAs, but like a summer camp version for SCAD.”

Documents obtained by WTOC Investigates show offer letters to PCAs went out this winter, describing the role as an hourly student employee position. The pay is listed at $13.50 an hour, with a projected income of $3,780 for 40 hours a week over seven weeks, plus housing and meals.

The offer package also included detailed performance expectations. PCAs must be present in dorms on assigned days, must get overnight absences approved by supervisors, must wear a uniform shirt, attend functions and team meetings, and take on other duties as assigned by SCAD staff.

But after students accepted, SCAD sent an email announcing what it called “an important change.”

The email said beginning this summer, PCAs will be classified as independent contractors rather than hourly employees. The student workers will receive a flat stipend of $3,510, $270 less than the original offer, paid in four installments with no overtime opportunities.

“We were told that it was worth up to $3,500,” the PCA said. “But I’ve had friends that have done the PCA [program] and they get more than that because they were able to work other hours or switch shifts. We don’t have that opportunity. We get a flat fee and that’s it.”

The new independent contractor agreement, obtained by WTOC Investigates, included virtually the same job responsibilities as the hourly job, including performing “other services as requested by SCAD.”

Legal concerns

Employment attorney Roland Mumford reviewed the documents and said those duties raise red flags.

“This would appear to be more of a W-2 classification and that they are walking a legal tightrope between that W-2 line and that 1099 classification,” Mumford said.

Mumford pointed to the level of control described in the documents, including supervision, on-campus work, SCAD-provided housing, uniforms, and assigned duties.

Under federal labor law, whether someone is an employee or an independent contractor depends on the facts of the working relationship, including how much control the organization has over the work and whether the worker is operating an independent business.

Mumford said the PCA documents describe students embedded in SCAD’s own summer program, performing ongoing work under SCAD’s direction.

“The degree of control and supervision that SCAD would have over the individuals in this position would absolutely fall under a W-2 classification,” Mumford said.

SCAD has not said why it made the switch, but Mumford said generally, reclassifying workers as independent contractors can reduce an employer’s payroll obligations.

“The only thing I could think of would be financial compensation savings,” Mumford said. “They’re looking at the savings because then, obviously, there would be tax withholdings for the employer. The employer may have to be paying out certain taxes for the employee, and so forth.”

Mumford said if workers are misclassified, there can be legal consequences, including claims for unpaid wages or overtime.

“When you look at the first document in contrast to the second document, it is clear they are walking a legal tightrope doing this,” Mumford said. “And there is some creative lawyering going on with that form, but I don’t think it passes the sniff test.”

The change also prohibits PCAs from working other SCAD jobs over the summer, as well as speaking to “the news media” about the independent contractor agreement.

The we spoke with PCA said the change adds to a broader concern about student workers feeling they have little power to push back.

“We don’t have a lot of protection,” the PCA said. “And we have no one we can talk to about it because this is coming from the head of student employment. They have a way of like, stepping around the rules without getting in trouble. And I have realized that.”

SCAD did not respond WTOC Investigates’ request for an interview.