Hedge fund legend Jim Simons is worth about $8.7 billion. His firm, Renaissance Technologies has $15 billion AUM.But for years RenTec classified security guards at the firm’s offices as contractors, which allowed it avoid unemployment insurance and other labour cost payments that it would have had to make if they were labelled staffers, the New York Post reports.
RenTec security guards found out that the firm hadn’t made unemployment payments on their behalf when one guard, called Louis Marsicovetere, left RenTec in ’08 and filed for unemployment insurance.
But he was told that because he’d been classified as a contractor, he was ineligible for benefits.After a legal tussle with his former employer, labour officials ruled in favour of Marsicovetere.
But Simons appealed the ruling! And experts told the Post that the back taxes, including penalties, might cost RenTech, at most, $100,000.
Mariscovetere set his own hours and did not work enough — sometimes as little as eight hours a week — to be considered an employee.
But Marsicovetere says he was without a doubt a RenTech employee; he had a uniform and had to wear a tie with the RenTech logo.
The appeal hearing is today.