conversation: User (mcgyver229): "Three months ago I was laid off as part of a 60 person lay off in a small company of 125 people.  I do Occupational Health and Safety work as I was the Manager.   I was given unemployment; been searching for jobs.\n\nFast forward 3 months, tax bill passed, etc.  I get a phone call from the president of the company asking me to come in because he has an opportunity.  He tells me things are picking back up and the company needs me back but he's trying to shop me at a discounted rate.\n\nI had been with the company 6 years and he says he wants to give me 20 hours at 60% of what I was making to do consulting work for 4 months until my lease is up.  This seems like a super low ball offer especially because they don't have to train anyone, I already know all of the employees, I am familiar with their policies as I wrote many of them.  Also after 4 months I cant get back on unemployment and having taken such a drastic pay cut I wouldn't be very well equipped to ask for more money in the future.\n\nI feel like this is a slap in the face and I want to counter offer their 60% slap with a 125% slap back.\n\nDoes this seem unreasonable??  Just seeking some guidance. \n\nThanks yall!\n\nUpdate: I weighed in at 250%.  Haven't received any response it's been a couple of hours since I sent my proposal.  I had to run the numbers several times.  My head hurt.\n\n**Update:  It's been a week and haven't received a response. "
  Self: "My two cents; decline the offer.  \nThey pulled a jerk move by not taking care of you (no raises for 3 years) while you were there, another one for how they let you go, and another one for how they want to bring you back.  You don't want to work for them.  \n  \nThat being said, life is life and maybe you need the money. 3 months work is income so you might want to take it. BUT, don't take that offer. They really don't have anything to offer you except a paycheck (clearly they aren't offering permanent work for their business that is "picking up"). So if they are just a check, it better be good.    \n\nAdditionally, you are the goose with the golden egg. You know everything inside and out and can hit the ground running day 1. You are the guy who can solve all their problems easily. Maybe somebody else can too, but the cost is higher (searching, hiring, training, etc). So you are the best option. People always pay top prices for the best option.     \n\nThen you have to factor in that he said contractor. Contractors are not employees, and take care of their own business costs. Mainly, think that for every paycheck you pay taxes on it, but so does your employer. Take a look at your last pay stub. How much in taxes did you pay? Say, 18%. That means they paid 18% as well, but as a contractor you'd be responsible for both, a total of 36%.  So you need to be paid 1.36 times what you were being paid just to break even. (This is all simple math and it might break down differently, but it's conceptual to get you in the right ballpark). That's why contact work costs what looks like an  exorbitant amount of money. The company is saving money on taxes, employment benefits, insurance, etc..., but the contractor is paying all that for themself. So the cost is the same overall, it's about who's paying it. Going in at a low rate isn't just bad for your hourly funding, you're actually paying their costs too.  \n\nSo that last part got long, sorry. Summary, if you go back as a contractor get paid minimum of 1.5 what you were getting paid to cover your costs. I'd actually say shoot for double. If they say no, they say no. Their loss. If they go for it then you actually get paid what you are worth and have your expenses covered."
  