Boss tries to keep former employee on as a contractor for 10hrs/week with slashed pay, doesn't understand why employee is offended

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  • A woman looks upset while talking on the phone outside her building
  • My work asked me to contract with them after resigning and then insulted me with their offer.

    I was making almost $27 an hour in my salaried role. With payroll taxes, healthcare premiums, and a 403b match, this cost for my employer was about $39 an hour. I did the math. I resigned on good terms and they asked me if I would be willing to contract for them maybe 10 hours a week after
  • starting my new job, which will pay me $34.18 an hour. I was totally open to this, but told them I would expect $50 an hour. I have done my research, and viewed this as a kindness towards them. Many people would demand more.
  • In my mind, I'm doing them a favor by keeping things running, training my replacement, etc. This is only $11 an hour more than what they pay to keep me as a salaried employee. Additionally, contracting would mean I'm giving up a clean break, an immediate release of stress, and would mean I'm working 50+ hours a week while starting my new job. I genuinely felt like I was doing them a favor. There's only 4 people on my team, including my boss.
  • My other manager left on September 2nd, 2025, and their hiring process is so slow that her replacement started on January 1st, 2026. She's still practically new so she's going to struggle to take my workload.
  • Originally, they seemed really anxious about me leaving, even offered to work something out to keep me, which I declined. They had literally told me no to opportunities for promotion before I resigned. Their fault. But I ended up agreeing to contract for them anyways since we did have a great working relationship and I valued them to some degree.
  • Anyways, they come back and tell me that there's no precedence for $50 an hour, that it's completely out of budget (hard to believe), and that other employees who decide to contract do so for much less. They implied they were doing ME a favor by offering me a contract, and offered $30 an hour. That is CHEAPER than their cost to keep me as an hourly employee. They would be saving money!
  • I very bluntly told them that their offer was not acceptable, and that I wasn't willing to save THEM money on my hourly rate and held firm. My boss got upset, tried to push back by implying that they were just "helping me make a little extra money," but irritatedly accepted my rejection of their offer.
  • I'm already making an extra 20k with my raise. Why would I need their "extra money?" I could make more than 50 an hour by working overtime at 34/hr. Why the h I would I accept that? Now they've just p ed me off. It doesn't seem like they expected me to decline. Oh well. If they come crawling back I'll tell them my rate has increased to $60 an hour. That would still be a kindness to them that I'm now feeling like they don't deserve.
  • Commenters agreed that they had the right to ask for more.

    ak_doug Generally speaking contract work is double the salary rate. Because you are doing it without benefits and without labor protections. No expectation of long term employment, no stability, no protection from anything.
  • You should be charging $75 an hour if they call back. This is based on your market research, and is a better reflection of your risks, and the value of your contributions to their efforts.
  • pangalacticcourier Good for you, OP! Stand firm. "You want my expertise? I offered you the friends and family rate as a professional courtesy in light of our long association. My regular freelance rate for this kind of work is $75 per hour. I wish you the best in your future endeavors."
  • A businesswoman looks confused while talking on the phone
  • Reuben3901 I wouldn't do it. They could blame you for any issues. that arise, especially now they put a target on your back
  • owaikeia Geez, you're entirely too nice. Why did you peg it so low at $50? Someone else said it, but yes. A contractor should be at LEAST double.
  • At min, $75/hr with a minimum amount of hours. But I would go higher, regardless. Toss out $100/hr. Their idea that "they're is no precedence" is irrelevant. You're the only one who really knows the work, can complete it competently, etc. You have the advantage. Use it.
  • Gen_X_Cynic Don't let emotions get the best of you. You gave them your rate, they don't want to pay it. No worries. Just move on. Don't let people live in your head without paying rent.
  • BigAggie06 "$50 was the "making it worth my time" rate, congrats if you need something you just graduated to the "you're an a hole rate" which is $75/hr"
  • ConsultantForLife Assume any 1099 gig will have up to a 40% tax on it. So the only way this works is if your rate is 1.4x your previous rate.
  • larrythegrobe They're going to pay you for 10 hours a week. They will be expecting you to work more than that. Don't do it.
  • Chrono978 For contract work, setup a company and apply for the contract as a company. My experience is corps never question hourly rates when it's a contracting company but get very antsy at rates when it's an individual. I've been rejecting low hourly rates by saying sorry my company won't accept this, even though I own and run it.
  • MuchDevelopme... If they come back. You need to at least double your initial offer. You were originally offering them a deal. Consider it an 'insult to your intelligence' tax.
  • utlaw92 They're just trying to "rightsize" your compensation.
  • bfume You wanna triple your salaried rate if you want a contractor rate for self- employment. Some say 2x but after taxes and benefit replacements, plus the self employment tax, 3x is a better metric. It's more common too if you can find a realistic client.
  • autumneliteRS I think you put it best yourself in another comment - they have undervalued you. They didn't put the effort into retaining you. They made a half hearted effort to discuss something when
  • you were leaving. They made an offer of contract work to help themselves - not you - and got offended when you didn't just agree to a basic salary. Maybe contracts do do it for less. But you aren't just another contractor. You would be doing this work on top of your normal job and would be significantly more
  • efficient that other contractors because you know the role because you have done it. If they do not want to or can't afford to pay you your worth, that is fine. But there are consequences for them for that choice. It is why you are leaving in the first place and in this case, the
  • consequence is they have to opt for another contractor who will be slower and less familar with the work. If they come back to you, the answer is a simple "My previous rate still stands. I wish you the best of luck with another contractor if you opt to go with them".
  • rasalscan Honestly, I would politely decline if they counteroffer. Negotiating further will simply sour the relationship. I try to always leave on excellent terms, and while you were initially doing that it seems like further action is going to unravel the relationship or good exit further.

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