RenTech Loses Appeal Of Unemployment Ruling

Feb 2 2011 | 10:33am ET

Renaissance Technologies' security guards are employees of the firm and not independent contractors, the New York State Unemployment Insurance Appeal Board has ruled in a decision that could cost the giant hedge fund about $100,000.

The board found in favor of the New York Department of Labor, which in 2009 ruled that RenTech should have been classifying security guards at its Long Island headquarters and Manhattan office as employees, and therefore paying more in unemployment insurance for them. RenTech had argued the specific former guard whose unemployment filing initiated the case worked too few hours per week to be considered an employee.

But the appeals board noted that RenTech guards didn't merely stand at the firm's doors, but shred confidential documents and patrol the offices themselves "so that Renaissance employees would feel more secure." The state will now review RenTech's employment records to determine how much the firm has stiffed it.

The hedge fund has 20 days to appeal, and the lawyer for aggrieved former guard Louios Marsicovetere expects it to do so. David Wims told the New York Post, "I don't think the appeal will be successful, but I expect them to do it."

Marsicovetere, for his part, called the ruling "fair and righteous."


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of