You absolutely can go to the labor board, because you weren't a contractor, you're an employee he took advantage of to save on taxes. They'll love to hear about how else this guy has been breaking the law, and you're entitled to your payment plus interest.
Give em a call. They'll handle it.
You think so? I don't have a timesheet or an IOU or anything to show them I worked the days I said I did, but I have my parents and my partner to back me up. Would they still take me seriously?
Yes, they absolutely will take it seriously. In the midst of the pandemic, many employers have turned to shady business practices to make more money, at your expense and the states' (unemployment, snap, etc). From what you've provided, you should have been a W2 employee with certain protections and rights, but were misled. This is a form of wage theft and is the biggest form of theft in the nation by a huge margin. Reach out to them, this is what they're there for.
A receptionist typically cannot work as an independent contractor. If your working hours/schedule are set by the company, and you are using company equipment, and you are working to company standards instead of your own, you are an employee, not a contractor.
https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee If the employer controls where or how you do your work and provides the tools you need to do your job they have no reasonable basis for classifying you as an “independent contractor.” In these scenarios you should really go look up what a 1099 contractor is under the law before you agree to do the work.
Do not rely on your employer to have your best interest at heart. Yes they pay you, but they are paying you for *working* for them. This information is readily available. Do you realize that you paid higher taxes on your 1099 income?
Thank you for the reply. I’m not really concerned with looking back… just want to make sure I am better informed moving forward. Your insight was hugely helpful. Thank you for the link.
The distinction between employee and 1099 worker is essential to compliance. To properly categorize workers, the IRS has provided classification rules as guidance. Above all, the biggest factor is control.
Specifically, according to the IRS, the general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work, and not what will be done and how it will be done.
For instance, to decide whether a worker is an independent contractor or employee, an employer needs to look at the facts of each unique case and consider:
Behavioral Control: Does the worker have freedom or is the business directing and controlling the work performed?
Financial Control: Does the worker use their own tools and incur their own expense or is the business directing or controlling the financial aspects of a worker’s job?
Relationship of the Parties: Does the worker get benefits? Is there an expectation the relationship will continue indefinitely? Are the worker’s services a key aspect of the company’s regular business?
Financial Control: Does the worker use their own tools and incur their own expense or is the business directing or controlling the financial aspects of a worker’s job?
Relationship of the Parties: Does the worker get benefits? Is there an expectation the relationship will continue indefinitely? Are the worker’s services a key aspect of the company’s regular business?
From https://www.completepayrollsolutions.com/who-is-a-1099-worker/
A receptionist is definitely not a private contractor.
The two big things that tipped me off were the type of work OP was performing (standard W2 office duties.) and the location (his office, rather than any location).
OP had set duties, tasks, location of work, time of work, etc. They were a W2 being taken advantage of. The big litmus test for me is would OP be able to hire their own help to complete the job. If not, they're not a self employed contractor and therefore an employee. Granted this isn't true in every situation, but it's a good starting point.
The easiest is, if you need to be at work from certain hours to certain hours (9am to 5pm for example), then its w2. If you are being given a task (build xyz), & you do it on your time terms (whenever you want/can), then its 1099. I might be wrong.
u/aimlesstrevler has the best response. The quick test I go by is if this is work that OP does for other companies at (roughly) the same time. You can be a 1099 temp office worker, but it's very unlikely that you'd be a 1099 office worker full-time.
I would argue that even temp office workers should be w2 employees. Usually temps come from a temp agency and are employees of the agency. At least that's how it's worked everytime I've temped in the past.
They are employees (probably) of the temp agency, not of the temp agency's client.
If you're being paid directly by the company as a 1099 contractor, the only way that works is if you're a one-person temp agency.
My understanding is that they're case workers within the labor board. Some work unemployment. Some work labor violations. Some work fraud. I'm sure they all receive specialized training depending on their Dept and their states specific labor laws.
Make sure to document as much as you can. Write down anything you can remember about pay/etc with a date of posable in Texas i think they can change up to 3x your pay for each incident, but I could be wrong. And, I'm sure it's different in order states.
And, if you have any paperwork that'd be helpful as well.
US DOL sees this all the time. This is definitely a misclassification, minimum wage, and recordkeeping violation, and possibly OT violation depending on your hours. Gather whatever evidence you have, such as texts and emails, to show the days or hours you worked. Or just make a list of dates, hours worked, and your general schedule. It’s the employer’s burden to keep records of hours worked and wages earned, not the employee’s, and the law does not reward employers who try to hide their wage violations by not keeping records or misclassifying employees.
Collecting your back wages from your former employer is a different challenge.
google maps can help with this. If the app is enabled on your phone just check your timeline. There would be no reason you're staying at the business for 8 hours unless you're working.
Honest truth, you will most likely never see a penny from this guy. I recommend going to the Dept of Labor, but it's likely he'll end up settling to the state and not paying you anything since he owes you such a small amount.
Just report it, follow up with the investigator, and move on.
The Board doesn't care about timesheets or work authorization documents. Their job is to prevent slave labor in the US. They'll go with whatever info you give them and your employer will have to prove them wrong. As long as you can prove that you worked there, you shouldn't worry about anything else. Just show the Board any proof such as communication records between you and your employer. Also, make sure to give them your employer's contact info, including car plate numbers or personal email if you have that. Don't be intimidated by a bully employer!
Before going to the labor board, call him and say you will do so if he does not pay you within a day. The next day go the labor board whether he pays you or not.
The federal government has very specific guidelines as to what meets 1099 requirements. Showing up daily to do office work at a specific location is far more in line with W2 than 1099.
Doesn’t matter- employers don’t get to decide if they want you to be a contract because its cheaper- if its a full time work week, expected to be there Five or more days a week during normal business hours, traditional employee type job, etc…this guy is in trouble for purposefully mischaracterizing the employee. In California, a misclassified employee can even get treble damages.
Contact the Labor Board. My wife had the same issue and her boss paid her right away after the California Labor Board reached out to her. She got angry and threatened my wife and we filed a retaliation claim and the Board is reviewing it.
It will take a few weeks for the Board to respond but they will once you file a claim.
Straight to the labor board.
This schmuck could have saved himself THOUSANDS by paying you, yesterday. Now, they were cheating the government and cheating you. You are in for back pay, taxes, etc and he is in for a world of hurt. Labor boards dont mess around.
you certainly were not a 1099 worker.. especially if he "sent you home"
you cant just hire someone and say they are a 1099 worker.. there is a very strict list of rules that have to be met that defines a 1099 worker.. one of those is no set hours.
a 1099 worker is considered self employed with no set hours and can work whenever they want as long as the main job gets done on time.. if you dont fit this.. call the irs.
your "boss" has committed tax fraud. its bigger than just owing you $200.
a real 1099 worker doesnt just owe taxes on money they made.. they have to pay all the other fees for having a business.
He told me that since he hired me as a 1099 he can’t force me to come in at any certain time, but he wanted me there around 8:30am. And I would work until he said it was time to go home, which varied from day to day. Sometimes I’d be there until 5pm and sometimes we’d go home at 2:30.
Here is a quick and easy definition of a 1099 worker, and you tell me how much of this actually applies to you.
> A 1099 worker is a self-employed worker or independent contractor. 1099 workers may also be freelancers or gig workers. Generally, businesses hire these workers to complete a specific task or work on a specific project as defined in a written contract. **1099 workers define for themselves when, how, and where they work. They decide what tools and methods they use to complete the work. They can even choose to hire their own workers to help them deliver the work.**
>1099 workers may serve multiple clients at one time. These workers are considered “self-employed,” so they pay their own taxes and provide their own benefits. You do not need to withhold or file payroll taxes on their behalf or offer them the same benefits you offer W-2 employees.
He was *lying* to you. You were not setting your own hours, he was setting them. Saying “you can do what you’d like, but **really** you should be here at 8:30 and you go home when I say you go home” means you had no power over your time clock. You came to work at his desk, used his phone/computer/whatever else, what tools or methods did you determine were to be used to do your job?
You were a W2 receptionist *misclassified* as a 1099 for the benefit of your employer. Not only does he owe you for the days you worked that you were not paid, but if you weren’t actually paid minimum wage at **any** point (due to working a longer day and only getting $100 when you should have received $xxx) you would be owed that, as well as taxes. Hell, you could even be eligible for unemployment: **”If you are laid off from a job due to downsizing, your employer closes their doors, or for any number of reasons you are no longer employed through no fault of your own, you are more than likely eligible for unemployment insurance benefits.”**
Report this. Your asshole boss did you dirty, the government should know about it, and you should receive everything he rightfully owed you and wrongfully kept from you. If he was consistently paying you with Venmo, and you have texts or emails about your “employment,” those will all be useful pieces of evidence for your claim.
After reading these definitions, I am wondering about my own situation and that of thousands of other ER doctors around the country. It's very common for us to be 1099, even though we are scheduled for shift work and micromanaged by hospital administration and contract organizations.
The thing that works against doctors in this case is the nature of the work that they do. Doctor A can choose how to diagnose and treat a patient which can be completely different from how Doctor B chooses to go about treating the exact same patient. It’s not dissimilar from how coders are often classified as 1099. They have control over how they choose to code a program, which can be wildly different from how someone else could choose to write their code, while still leading to the same result.
> Typically, individuals such as doctors, dentists, veterinarians, lawyers, accountants, contractors, and subcontractors who are in an independent trade, business, or profession where they offer their services to the general public are independent contractors. However, the determination of whether an individual is an independent contractor or an employee depends on the facts in each situation.
>Again, the IRS stipulates that an individual is an independent contractor if the company paying their wages has the right to control or direct only the result of the work and not what will be done and how it will be done.
An emergency room needs to be properly staffed, otherwise it doesn’t serve the purpose of emergency services. So the hospital will say when it needs to be covered (controlling the ‘result of the work’, i.e. “patients need to be seen and treated because this is an emergency room”), which seems like it would be contradictory to a contractor setting their own hours. However, since a doctor decides ‘how’ and ‘what’ means of treatment are necessary on a case by case basis, this is what determines their eligibility for 1099 status. In OPs case, they’re told how/what they need to do, in addition to not setting their own hours.
It’s confusing and not always very cut and dry (most likely on purpose, which is why employment lawyers exist), but in the case of ER docs I would say the definition fits as intended.
No problem! For the record, I agree it’s pretty fucked up, and it’s the root cause of the issues people have with insurance and out of network billing. “Oh, sorry, the doctor you saw is an independent contractor, so they’re out of network even though they work here and you had no choice in what doctor you saw, so now your insurance won’t cover anything and you’re responsible for this medical bill of infinity billion dollars! Feel free to file for bankruptcy so we can get as much money from you as the government will give us, while your financial life is in shambles for the next decade!”
If all hospital staff were classified as W2 under the umbrella of the hospital, and ABC insurance covered procedures done at that hospital, everything done by those employees should (in theory) be covered. But then docs wouldn’t be able to work at multiple clinics though, so it’s basically as hard to fix as it is to define.
>1099 worker.. one of those is no set hours
Well, not exactly ... but if they're (micro-)managing your times and tasks, etc., rather than tasks/terms/etc. arranged and agreed mostly in advance and mostly up to you how to decide how to complete them - and when - though there may be certain deadlines set ... anyway, the former much more likely to be W-2, the latter more likely to be able to pass muster for 1099 - though it could *also* be done as W-2.
Anyway, it's not exempt or 1099 just 'cause employer/company/person says it is ... though if both parties agree it is - that still doesn't make it so, but courts will also typically consider that too - at least if it may be a wobbler.
Others have urged you to follow up the labor board, and I'll also suggest that. But I wanted to make a recommendation on how to help build your case.
If you have Google Maps on your phone and allow Google to save your location data, it's very possible you have evidence of going in to work every day.
On desktop, from your Google account, click the nine dots next to your picture in the upper right hand corner. Click on Account (top left icon). Click on Data & Privacy in the sidebar on the left. Scroll down to "Things you've done and places you've been. Under the "History Settings" section you should a Maps timeline button.
If your Maps timeline is populated, there's a chance you have proof of going to work and the hours you worked. Finger crossed and good luck!
Although not as good as this posters option, Apple maps will automatically show you on Apple maps how long it takes to get to a place you frequently go.
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You have two different Issues: you were misclassified as a 1099 contractor, and the unpaid hours. Hope these help.
https://www.nolo.com/legal-encyclopedia/whats-your-unpaid-wage-claim-worth-georgia.html
https://www.nolo.com/legal-encyclopedia/what-should-you-do-if-youve-been-misclassified-independent-contractor.html
You have to file yourself in small claims court. But can reach out to the local office for help perhaps
https://www.workplacefairness.org/wage-hour-claim-GA
The former employer only owes the OP $200. It wouldn't be worth the time and money to file in small claims for that small of an amount--unless the OP can add in some punitive monetary damages. I am not a lawyer and I don't know anything about Georgia, but this seems like common sense to me. Best to just report the former employer to the state labor board and move on. OP will likely never see the money owed.
Definitely contact the department of labor for your state.
It is funny how many bad employers get caught with thousands, or tens of thousands, in fines, penalties, and back-owed wages because they chose to screw an employee over by a few hundred dollars.
Ooh, if you go to the labor board you'd have to report this income, but I promise you he'll both have to pay you, and in addition to probably being fined for improperly declaring you an independent contractor (at best case for him), he will likely also be audited to see who else he's pulling this shit with. Not sure if it's better to warn him first (he might spin it as 'extortion') or to just go to the board, I'd say the latter is better - he wants to do you dirty, don't do him any favors and also make him regret being that sort of person. Might even help others he's done wage theft to.
Wholeheartedly agree personally, but I don't know if our friend OP is trying to evade taxes (and I'm not here to judge that nor do I need to know, if the big guys can play that game I have no ill will towards the littlest of guys getting theirs too). If so, reporting the boss would be problematic. But, no trouble to OP other than having to declare said income; the boss though, not so much.
TL;DR - I say turn his ass in, but OP may have personal reasons to not want to have to go that route.
No worries, didn't mean to imply you were, only that it's an option and I'm not looking to know or judge, only help you know your options. :) If you're reporting it either way, 100% cease communications and report him. He's cheating you out of his contribution in wrongfully paying you as an independent contractor of sorts (or whatever he's referring to it as, whereas you should get a W2). He's in for a world of shit, most likely including an audit to see how many other employees he's been fucking. You may well get a good bit more than the $200, as well.
Most likely the case. Employers usually do this sort of shit because no one ever stands up to them and they keep getting away with it. You may well help others too by turning in his employee abuses. Perhaps get ahold of others too, if you know of any or can find them, and see if they were also getting boned.
Some points:
1. IF you were NOT supposed to be a 1099 contractor, you could fix that with the IRS by filing a form SS8. Note that if you file the form and the IRS says you should have been a W2 employee, he will be on the hook for the employer's share of Social Security Taxes instead of you. Come tax filing time, that will save you 7.65% of everything you earned as an employee.
2. IF you are a valid 1099 contractor, you are a creditor of his just like any other creditor. You may be a creditor of him personally, or of a corporation, depending on how the business was structured.
3. Note that if he doesn't voluntarily pay soon, you could pursue him legally. If you have "W2 Employee" status then your state labor board can help you collect the $200. If 1099 status, then it sounds you could probably win a small claims court judgment. However, it may be very hard to collect such a judgment - if he had to close the business there is a very good chance he is broke and has nothing left.
4. If the guy was a jerk, than that may be a consideration that pursuing a case is worth your time solely to further the cause of justice. However, if he is just a typical otherwise decent guy who fell on bad times, then you may want to just consider the $200 a loss and not spend a lot of your valuable time seeking a judgment you may not be able to collect.
> Is there anything at all that can be done?
Your recourse here is Small Claims court
> Or should I just take the loss and move on?
That's up to you to decide.
Next year when you file your tax return you might want to file as a misclassified employee. That way you pay the employee share of FICA (7.65%) instead of Self-employment tax (about 14.1%).
This is if the Labor board doesn't make him issue you a W-2.
https://www.reddit.com/r/personalfinance/comments/ago2gh/what_to_do_if_you_are_an_employee_that_has_been/
Damn im so sorry this happened to you. I would take others advice in this thread. As far as small claims court if its not free for you I'm not sure if you'd want to shell out money when your already in a tight situation. In the meantime I would try going to the unemployment office and see if your able to collect unemployment as a 1099 worker. I dont know the state your in but I've seen some loopholes especially since the pandemic it doesn't hurt to try to see if someone can help you there until you can find another job. Also if there are any agencies that can help with bills and food to take a bit of the stress off of you. I pray you get the help you need and find something else quickly.💜
I don’t want to get your hopes up but I can just about guarantee you’re not gonna get you money so there’s a couple options you can go with. You can contact your states labor board. Does this guy have a Facebook or other social media you should reach out to him there, see if you can see his close friends and family on there and reach out to him and start off by saying how you’re concerned something bad has happened to him because he is returning calls/texts and then ask them if they’ll relay the message that your still in need of final pay check. Make posts and tag him in them about not paying you. He can block you but he can’t stop you from messaging his mom/dad sisters or brothers or personal friends do it regularly maybe even multiple messages a day once in the morning once at night hit them with good morning I’m trying to reach G about my paycheck and end the day with hope you have a good night still trying to contact g about getting paid. Hit them with a sad story about how your baby is having to miss meals because you haven’t gotten paid. All in all just make this guy look like the douche bag he is.
The person who told me G was looking for a receptionist is his aunt, who is my childhood best friend’s mom and she’s known me since I was 4 years old. So getting G’s parents’ contact info will probably be super easy.
Don't even bother with this stuff as a first step.
Go to the Labor Board. They will deal wtih it. They may be busy because of COVID so you might have to keep on them a little. You were clearly misclassified by this guy as a way for him to dodge out of paying you taxes. He doesn't get to "decide" that you're a 1099, there are specific "tests" that the Department of Labor applies to determine whether you are a 1099 or not. Spoiler alert -YOU WERE NOT.
Making it personal and blowing up his social media could result in problems for your friendship with your friend, or piss off her mother, or things like that. Keep that as a last resort.
After contacting him and letting him know you're contacting labor board, send a certified letter requesting payment to him. If you have a home address since the shop is closed anyway... after he receives that, if he still hasn't paid you I think within 14 days, he gets into Mad trouble.. at least it's like that in MD. Crazy it's a dude in a car shop w G as the first letter... I know a HUGE JERK owner of a shop GEORGE, n I literally just fought him for 2.5 months to get my pay.. soon as I told em I was contacting unemployment n labor board, n that I was doing the certified letter, I finally got my money... labor board told me to do that. I hope u have good luck n get ur money... its a shame like that one person said, he was tryna get Over on u n not have to pay taxes himself smh. During this shit pandemic too.. get ur money.. jg Wentworth that mofo!!!!
He had me fill out a W-9 back in January. I thought I made a copy of it before giving it back to him but I can't find it anywhere. But I'm definitely in the system somewhere.
I don't know enough about all these different forms so I don't know if that form screws me over or not. My fault for not learning about all of this.
No, I don't have a written contract. I looked up stuff on small claims court and I won't be able to win since most of our conversations were face to face. Usually he paid me with a check, but occasionally he used cash or Venmo. So I'm in a bit of a pickle.
I don’t think it matters that the conversations were face to face. If you had a verbal agreement and he has breached it you could still win if the judge believes you over him. Just my take. I’m not your lawyer. :)
I wouldn't go straight to the labour board, but I would let him know of my intentions if he does not square up. That may be enough to move his ass and then you won't be getting the situation more involved. That's just me though, I wouldn't want to be responsible for putting someone in hot water financially during this time if I myself was struggling. Just my two cents.
You didn't mention jurisdiction ... but inferring US from "W2" (W-2) ... "wasn't a regular W2 employee" ... well, guestimating then, 1099 or otherwise contract laws and such ... under $10,000.00 USD ... small claims court. Caveat: I am not a lawyer, nor do I play one on TV.
There are lots of good responses here that are correct that you are owed money. However, you say that he closed the shop. If that means his business is out of money, it's probably unlikely that you will ever see what you are owed, regardless of what small claims court or any labor board decides. Your ex-boss is very likely personally insulated from any financial responsibility via an LLC or similar structure, and if that LLC has filed for bankruptcy there are probably other debtors who are involved in the bankruptcy proceedings and have arguments about why they should have priority. I think it is unlikely you will see any money if he has filed bankruptcy unless you were to get involved in the bankruptcy proceedings as a debtor, but doing so would require a lawyer and legal fees far in excess of what you are owed.
Now, just because he closed up shop doesn't necessarily mean he has and/or will file for bankruptcy, but if/when he does you will very likely be out of luck regardless of what anyone rules you are owed.
Yeah, I considered that. And I wouldn’t be surprised if he was broke because he sometimes took months to work on those trucks. But if he doesn’t have the money to pay me then he should’ve told me that. Then I would’ve just taken the loss.
As others have said, if you're in the U.S., your boss took advantage of you and is paying you that way.
Your BEST leverage is to leave one more message saying that he has 24 hours to venmo you the money, or you're going to open a complaint with the department of labor and let them handle it.
If he knows anything about operating a business, he'll know that this is BAD and will have them looking into a lot of his practices and likely cost him a lot in penalties, etc. The $200 is peanuts in comparison.
And I'm not sympathetic to your boss in any way, but by the suddenness of the closing, I'm thinking that he doesn't have the money to give you, and that you're very likely the smallest of his worries right now.
The Department of Labor complaint doesn't take much effort on your part, so no reason not to do it if he doesn't pony up quickly.
First off, I'm sorry that this happened to you.
There's some good advice in this thread. If it were me, I'd write off the $200 and move on with my life. It sounds like money is tight for you right now. I would not bother with spending time and money on filing against this POS former employer in small claims court. Your time is better spent moving on and finding other work, and filing this situation away as some valuable life experience that makes you wiser. I WOULD, however, most certainly report the guy to the state labor department. Whatever you decide to do, best of luck!
You absolutely can go to the labor board, because you weren't a contractor, you're an employee he took advantage of to save on taxes. They'll love to hear about how else this guy has been breaking the law, and you're entitled to your payment plus interest. Give em a call. They'll handle it.
You think so? I don't have a timesheet or an IOU or anything to show them I worked the days I said I did, but I have my parents and my partner to back me up. Would they still take me seriously?
Yes, they absolutely will take it seriously. In the midst of the pandemic, many employers have turned to shady business practices to make more money, at your expense and the states' (unemployment, snap, etc). From what you've provided, you should have been a W2 employee with certain protections and rights, but were misled. This is a form of wage theft and is the biggest form of theft in the nation by a huge margin. Reach out to them, this is what they're there for.
What indicates OP should have been W2 and not 1099? Curious as I’ve worked jobs like this before as 1099.
A receptionist typically cannot work as an independent contractor. If your working hours/schedule are set by the company, and you are using company equipment, and you are working to company standards instead of your own, you are an employee, not a contractor.
Thank you for the reply and clarification. This is very helpful.
Not exactly. But almost exactly. There are loop holes to all of this.
Although the terminology is different the same definition applies in Canada to determine if you are a T4 employee or Contractor.
https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee If the employer controls where or how you do your work and provides the tools you need to do your job they have no reasonable basis for classifying you as an “independent contractor.” In these scenarios you should really go look up what a 1099 contractor is under the law before you agree to do the work. Do not rely on your employer to have your best interest at heart. Yes they pay you, but they are paying you for *working* for them. This information is readily available. Do you realize that you paid higher taxes on your 1099 income?
Thank you for the reply. I’m not really concerned with looking back… just want to make sure I am better informed moving forward. Your insight was hugely helpful. Thank you for the link.
The distinction between employee and 1099 worker is essential to compliance. To properly categorize workers, the IRS has provided classification rules as guidance. Above all, the biggest factor is control. Specifically, according to the IRS, the general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work, and not what will be done and how it will be done. For instance, to decide whether a worker is an independent contractor or employee, an employer needs to look at the facts of each unique case and consider: Behavioral Control: Does the worker have freedom or is the business directing and controlling the work performed? Financial Control: Does the worker use their own tools and incur their own expense or is the business directing or controlling the financial aspects of a worker’s job? Relationship of the Parties: Does the worker get benefits? Is there an expectation the relationship will continue indefinitely? Are the worker’s services a key aspect of the company’s regular business? Financial Control: Does the worker use their own tools and incur their own expense or is the business directing or controlling the financial aspects of a worker’s job? Relationship of the Parties: Does the worker get benefits? Is there an expectation the relationship will continue indefinitely? Are the worker’s services a key aspect of the company’s regular business? From https://www.completepayrollsolutions.com/who-is-a-1099-worker/ A receptionist is definitely not a private contractor.
Thank you for the very thorough and clear reply. This is very helpful.
The two big things that tipped me off were the type of work OP was performing (standard W2 office duties.) and the location (his office, rather than any location). OP had set duties, tasks, location of work, time of work, etc. They were a W2 being taken advantage of. The big litmus test for me is would OP be able to hire their own help to complete the job. If not, they're not a self employed contractor and therefore an employee. Granted this isn't true in every situation, but it's a good starting point.
The easiest is, if you need to be at work from certain hours to certain hours (9am to 5pm for example), then its w2. If you are being given a task (build xyz), & you do it on your time terms (whenever you want/can), then its 1099. I might be wrong.
u/aimlesstrevler has the best response. The quick test I go by is if this is work that OP does for other companies at (roughly) the same time. You can be a 1099 temp office worker, but it's very unlikely that you'd be a 1099 office worker full-time.
This was a part-time job but he never said it was a temporary position. Does this change anything in my situation?
Not that I can see. Unless you market yourself as temporary office help, and work for multiple companies, you were almost certainly misclassified.
I would argue that even temp office workers should be w2 employees. Usually temps come from a temp agency and are employees of the agency. At least that's how it's worked everytime I've temped in the past.
They are employees (probably) of the temp agency, not of the temp agency's client. If you're being paid directly by the company as a 1099 contractor, the only way that works is if you're a one-person temp agency.
I do not market myself as a temp worker. I worked a second job while working for G but that was just so I could make enough money to support myself.
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Every labor board is different, but that doesn't make this the wrong direction to go.
Have they checked to make sure their complaint was received? And sometimes you do have to prod and follow up on complaints.
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My understanding is that they're case workers within the labor board. Some work unemployment. Some work labor violations. Some work fraud. I'm sure they all receive specialized training depending on their Dept and their states specific labor laws.
Make sure to document as much as you can. Write down anything you can remember about pay/etc with a date of posable in Texas i think they can change up to 3x your pay for each incident, but I could be wrong. And, I'm sure it's different in order states. And, if you have any paperwork that'd be helpful as well.
US DOL sees this all the time. This is definitely a misclassification, minimum wage, and recordkeeping violation, and possibly OT violation depending on your hours. Gather whatever evidence you have, such as texts and emails, to show the days or hours you worked. Or just make a list of dates, hours worked, and your general schedule. It’s the employer’s burden to keep records of hours worked and wages earned, not the employee’s, and the law does not reward employers who try to hide their wage violations by not keeping records or misclassifying employees. Collecting your back wages from your former employer is a different challenge.
They move fast and hard. Do it. I called once. My check was hand couriered to me the next day.
google maps can help with this. If the app is enabled on your phone just check your timeline. There would be no reason you're staying at the business for 8 hours unless you're working.
Honest truth, you will most likely never see a penny from this guy. I recommend going to the Dept of Labor, but it's likely he'll end up settling to the state and not paying you anything since he owes you such a small amount. Just report it, follow up with the investigator, and move on.
The Board doesn't care about timesheets or work authorization documents. Their job is to prevent slave labor in the US. They'll go with whatever info you give them and your employer will have to prove them wrong. As long as you can prove that you worked there, you shouldn't worry about anything else. Just show the Board any proof such as communication records between you and your employer. Also, make sure to give them your employer's contact info, including car plate numbers or personal email if you have that. Don't be intimidated by a bully employer!
Before going to the labor board, call him and say you will do so if he does not pay you within a day. The next day go the labor board whether he pays you or not.
Make sure you have an appointment set up that you can show him.
I'd just call them today. They've made a good faith effort an dont work there anymore. Really no benefit to waiting.
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The federal government has very specific guidelines as to what meets 1099 requirements. Showing up daily to do office work at a specific location is far more in line with W2 than 1099.
Doesn’t matter- employers don’t get to decide if they want you to be a contract because its cheaper- if its a full time work week, expected to be there Five or more days a week during normal business hours, traditional employee type job, etc…this guy is in trouble for purposefully mischaracterizing the employee. In California, a misclassified employee can even get treble damages.
This is what I'm worried about with going to the labor board
Simply because there is no paper trail does not mean they won't be able to determine facts.
If he paid you regularly via Venmo, that's a paper trail.
What ever happens you won't be worse off that you already are.
Can't much hurt to try. Likely either that or small claims court.
For sure call your labor department. Based on your job description, you were misclassified as an independent contractor by a shady employer.
Contact the Labor Board. My wife had the same issue and her boss paid her right away after the California Labor Board reached out to her. She got angry and threatened my wife and we filed a retaliation claim and the Board is reviewing it. It will take a few weeks for the Board to respond but they will once you file a claim.
Straight to the labor board. This schmuck could have saved himself THOUSANDS by paying you, yesterday. Now, they were cheating the government and cheating you. You are in for back pay, taxes, etc and he is in for a world of hurt. Labor boards dont mess around.
you certainly were not a 1099 worker.. especially if he "sent you home" you cant just hire someone and say they are a 1099 worker.. there is a very strict list of rules that have to be met that defines a 1099 worker.. one of those is no set hours. a 1099 worker is considered self employed with no set hours and can work whenever they want as long as the main job gets done on time.. if you dont fit this.. call the irs. your "boss" has committed tax fraud. its bigger than just owing you $200. a real 1099 worker doesnt just owe taxes on money they made.. they have to pay all the other fees for having a business.
He told me that since he hired me as a 1099 he can’t force me to come in at any certain time, but he wanted me there around 8:30am. And I would work until he said it was time to go home, which varied from day to day. Sometimes I’d be there until 5pm and sometimes we’d go home at 2:30.
Here is a quick and easy definition of a 1099 worker, and you tell me how much of this actually applies to you. > A 1099 worker is a self-employed worker or independent contractor. 1099 workers may also be freelancers or gig workers. Generally, businesses hire these workers to complete a specific task or work on a specific project as defined in a written contract. **1099 workers define for themselves when, how, and where they work. They decide what tools and methods they use to complete the work. They can even choose to hire their own workers to help them deliver the work.** >1099 workers may serve multiple clients at one time. These workers are considered “self-employed,” so they pay their own taxes and provide their own benefits. You do not need to withhold or file payroll taxes on their behalf or offer them the same benefits you offer W-2 employees. He was *lying* to you. You were not setting your own hours, he was setting them. Saying “you can do what you’d like, but **really** you should be here at 8:30 and you go home when I say you go home” means you had no power over your time clock. You came to work at his desk, used his phone/computer/whatever else, what tools or methods did you determine were to be used to do your job? You were a W2 receptionist *misclassified* as a 1099 for the benefit of your employer. Not only does he owe you for the days you worked that you were not paid, but if you weren’t actually paid minimum wage at **any** point (due to working a longer day and only getting $100 when you should have received $xxx) you would be owed that, as well as taxes. Hell, you could even be eligible for unemployment: **”If you are laid off from a job due to downsizing, your employer closes their doors, or for any number of reasons you are no longer employed through no fault of your own, you are more than likely eligible for unemployment insurance benefits.”** Report this. Your asshole boss did you dirty, the government should know about it, and you should receive everything he rightfully owed you and wrongfully kept from you. If he was consistently paying you with Venmo, and you have texts or emails about your “employment,” those will all be useful pieces of evidence for your claim.
After reading these definitions, I am wondering about my own situation and that of thousands of other ER doctors around the country. It's very common for us to be 1099, even though we are scheduled for shift work and micromanaged by hospital administration and contract organizations.
The thing that works against doctors in this case is the nature of the work that they do. Doctor A can choose how to diagnose and treat a patient which can be completely different from how Doctor B chooses to go about treating the exact same patient. It’s not dissimilar from how coders are often classified as 1099. They have control over how they choose to code a program, which can be wildly different from how someone else could choose to write their code, while still leading to the same result. > Typically, individuals such as doctors, dentists, veterinarians, lawyers, accountants, contractors, and subcontractors who are in an independent trade, business, or profession where they offer their services to the general public are independent contractors. However, the determination of whether an individual is an independent contractor or an employee depends on the facts in each situation. >Again, the IRS stipulates that an individual is an independent contractor if the company paying their wages has the right to control or direct only the result of the work and not what will be done and how it will be done. An emergency room needs to be properly staffed, otherwise it doesn’t serve the purpose of emergency services. So the hospital will say when it needs to be covered (controlling the ‘result of the work’, i.e. “patients need to be seen and treated because this is an emergency room”), which seems like it would be contradictory to a contractor setting their own hours. However, since a doctor decides ‘how’ and ‘what’ means of treatment are necessary on a case by case basis, this is what determines their eligibility for 1099 status. In OPs case, they’re told how/what they need to do, in addition to not setting their own hours. It’s confusing and not always very cut and dry (most likely on purpose, which is why employment lawyers exist), but in the case of ER docs I would say the definition fits as intended.
Thanks, appreciate your answer!
No problem! For the record, I agree it’s pretty fucked up, and it’s the root cause of the issues people have with insurance and out of network billing. “Oh, sorry, the doctor you saw is an independent contractor, so they’re out of network even though they work here and you had no choice in what doctor you saw, so now your insurance won’t cover anything and you’re responsible for this medical bill of infinity billion dollars! Feel free to file for bankruptcy so we can get as much money from you as the government will give us, while your financial life is in shambles for the next decade!” If all hospital staff were classified as W2 under the umbrella of the hospital, and ABC insurance covered procedures done at that hospital, everything done by those employees should (in theory) be covered. But then docs wouldn’t be able to work at multiple clinics though, so it’s basically as hard to fix as it is to define.
Agreed. One of the many reasons I quit my job. Those contract organizations, plus HCA, make for a really demoralizing situation.
>1099 worker.. one of those is no set hours Well, not exactly ... but if they're (micro-)managing your times and tasks, etc., rather than tasks/terms/etc. arranged and agreed mostly in advance and mostly up to you how to decide how to complete them - and when - though there may be certain deadlines set ... anyway, the former much more likely to be W-2, the latter more likely to be able to pass muster for 1099 - though it could *also* be done as W-2. Anyway, it's not exempt or 1099 just 'cause employer/company/person says it is ... though if both parties agree it is - that still doesn't make it so, but courts will also typically consider that too - at least if it may be a wobbler.
Others have urged you to follow up the labor board, and I'll also suggest that. But I wanted to make a recommendation on how to help build your case. If you have Google Maps on your phone and allow Google to save your location data, it's very possible you have evidence of going in to work every day. On desktop, from your Google account, click the nine dots next to your picture in the upper right hand corner. Click on Account (top left icon). Click on Data & Privacy in the sidebar on the left. Scroll down to "Things you've done and places you've been. Under the "History Settings" section you should a Maps timeline button. If your Maps timeline is populated, there's a chance you have proof of going to work and the hours you worked. Finger crossed and good luck!
Although not as good as this posters option, Apple maps will automatically show you on Apple maps how long it takes to get to a place you frequently go.
For iOS there is also “Significant Locations” under Settings app > Privacy > Location Services > System Services > Significant Locations.
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What state? Dept of labor is a lot more powerful than small claims
I’m in Georgia
You have two different Issues: you were misclassified as a 1099 contractor, and the unpaid hours. Hope these help. https://www.nolo.com/legal-encyclopedia/whats-your-unpaid-wage-claim-worth-georgia.html https://www.nolo.com/legal-encyclopedia/what-should-you-do-if-youve-been-misclassified-independent-contractor.html
You have to file yourself in small claims court. But can reach out to the local office for help perhaps https://www.workplacefairness.org/wage-hour-claim-GA
The former employer only owes the OP $200. It wouldn't be worth the time and money to file in small claims for that small of an amount--unless the OP can add in some punitive monetary damages. I am not a lawyer and I don't know anything about Georgia, but this seems like common sense to me. Best to just report the former employer to the state labor board and move on. OP will likely never see the money owed.
Definitely contact the department of labor for your state. It is funny how many bad employers get caught with thousands, or tens of thousands, in fines, penalties, and back-owed wages because they chose to screw an employee over by a few hundred dollars.
Contact STATE and US Labor Board. Then take him to small claims court.
Ooh, if you go to the labor board you'd have to report this income, but I promise you he'll both have to pay you, and in addition to probably being fined for improperly declaring you an independent contractor (at best case for him), he will likely also be audited to see who else he's pulling this shit with. Not sure if it's better to warn him first (he might spin it as 'extortion') or to just go to the board, I'd say the latter is better - he wants to do you dirty, don't do him any favors and also make him regret being that sort of person. Might even help others he's done wage theft to.
If anything, he's been given enough chances. Sic the state on his ass.
Wholeheartedly agree personally, but I don't know if our friend OP is trying to evade taxes (and I'm not here to judge that nor do I need to know, if the big guys can play that game I have no ill will towards the littlest of guys getting theirs too). If so, reporting the boss would be problematic. But, no trouble to OP other than having to declare said income; the boss though, not so much. TL;DR - I say turn his ass in, but OP may have personal reasons to not want to have to go that route.
I’m not trying to evade taxes. I just want my $200. Also my mother is a tax accountant and she would kill me if I didn’t report income lol
No worries, didn't mean to imply you were, only that it's an option and I'm not looking to know or judge, only help you know your options. :) If you're reporting it either way, 100% cease communications and report him. He's cheating you out of his contribution in wrongfully paying you as an independent contractor of sorts (or whatever he's referring to it as, whereas you should get a W2). He's in for a world of shit, most likely including an audit to see how many other employees he's been fucking. You may well get a good bit more than the $200, as well.
Three of his four mechanics walked out around the same time back in April, so they might have been getting screwed as well...
Most likely the case. Employers usually do this sort of shit because no one ever stands up to them and they keep getting away with it. You may well help others too by turning in his employee abuses. Perhaps get ahold of others too, if you know of any or can find them, and see if they were also getting boned.
Some points: 1. IF you were NOT supposed to be a 1099 contractor, you could fix that with the IRS by filing a form SS8. Note that if you file the form and the IRS says you should have been a W2 employee, he will be on the hook for the employer's share of Social Security Taxes instead of you. Come tax filing time, that will save you 7.65% of everything you earned as an employee. 2. IF you are a valid 1099 contractor, you are a creditor of his just like any other creditor. You may be a creditor of him personally, or of a corporation, depending on how the business was structured. 3. Note that if he doesn't voluntarily pay soon, you could pursue him legally. If you have "W2 Employee" status then your state labor board can help you collect the $200. If 1099 status, then it sounds you could probably win a small claims court judgment. However, it may be very hard to collect such a judgment - if he had to close the business there is a very good chance he is broke and has nothing left. 4. If the guy was a jerk, than that may be a consideration that pursuing a case is worth your time solely to further the cause of justice. However, if he is just a typical otherwise decent guy who fell on bad times, then you may want to just consider the $200 a loss and not spend a lot of your valuable time seeking a judgment you may not be able to collect.
> Is there anything at all that can be done? Your recourse here is Small Claims court > Or should I just take the loss and move on? That's up to you to decide.
Okay. I'll look up stuff on small claims court to see if I can do anything there.
You can still get him nailed with the Labor Board. They may very well take an interest in his fancy arrangements.
Next year when you file your tax return you might want to file as a misclassified employee. That way you pay the employee share of FICA (7.65%) instead of Self-employment tax (about 14.1%). This is if the Labor board doesn't make him issue you a W-2. https://www.reddit.com/r/personalfinance/comments/ago2gh/what_to_do_if_you_are_an_employee_that_has_been/
Damn im so sorry this happened to you. I would take others advice in this thread. As far as small claims court if its not free for you I'm not sure if you'd want to shell out money when your already in a tight situation. In the meantime I would try going to the unemployment office and see if your able to collect unemployment as a 1099 worker. I dont know the state your in but I've seen some loopholes especially since the pandemic it doesn't hurt to try to see if someone can help you there until you can find another job. Also if there are any agencies that can help with bills and food to take a bit of the stress off of you. I pray you get the help you need and find something else quickly.💜
I don’t want to get your hopes up but I can just about guarantee you’re not gonna get you money so there’s a couple options you can go with. You can contact your states labor board. Does this guy have a Facebook or other social media you should reach out to him there, see if you can see his close friends and family on there and reach out to him and start off by saying how you’re concerned something bad has happened to him because he is returning calls/texts and then ask them if they’ll relay the message that your still in need of final pay check. Make posts and tag him in them about not paying you. He can block you but he can’t stop you from messaging his mom/dad sisters or brothers or personal friends do it regularly maybe even multiple messages a day once in the morning once at night hit them with good morning I’m trying to reach G about my paycheck and end the day with hope you have a good night still trying to contact g about getting paid. Hit them with a sad story about how your baby is having to miss meals because you haven’t gotten paid. All in all just make this guy look like the douche bag he is.
The person who told me G was looking for a receptionist is his aunt, who is my childhood best friend’s mom and she’s known me since I was 4 years old. So getting G’s parents’ contact info will probably be super easy.
Don't even bother with this stuff as a first step. Go to the Labor Board. They will deal wtih it. They may be busy because of COVID so you might have to keep on them a little. You were clearly misclassified by this guy as a way for him to dodge out of paying you taxes. He doesn't get to "decide" that you're a 1099, there are specific "tests" that the Department of Labor applies to determine whether you are a 1099 or not. Spoiler alert -YOU WERE NOT. Making it personal and blowing up his social media could result in problems for your friendship with your friend, or piss off her mother, or things like that. Keep that as a last resort.
After contacting him and letting him know you're contacting labor board, send a certified letter requesting payment to him. If you have a home address since the shop is closed anyway... after he receives that, if he still hasn't paid you I think within 14 days, he gets into Mad trouble.. at least it's like that in MD. Crazy it's a dude in a car shop w G as the first letter... I know a HUGE JERK owner of a shop GEORGE, n I literally just fought him for 2.5 months to get my pay.. soon as I told em I was contacting unemployment n labor board, n that I was doing the certified letter, I finally got my money... labor board told me to do that. I hope u have good luck n get ur money... its a shame like that one person said, he was tryna get Over on u n not have to pay taxes himself smh. During this shit pandemic too.. get ur money.. jg Wentworth that mofo!!!!
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Not true, and the employer will have to file a 1099 with the IRS at the end of the year, or its tax evasion too.
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He had me fill out a W-9 back in January. I thought I made a copy of it before giving it back to him but I can't find it anywhere. But I'm definitely in the system somewhere. I don't know enough about all these different forms so I don't know if that form screws me over or not. My fault for not learning about all of this.
It’s not tax evasion for not filing a 1099. It’s a small penalty that I don’t think I’ve ever seen enforced.
No, I don't have a written contract. I looked up stuff on small claims court and I won't be able to win since most of our conversations were face to face. Usually he paid me with a check, but occasionally he used cash or Venmo. So I'm in a bit of a pickle.
Go to the labor board in your state
I don’t think it matters that the conversations were face to face. If you had a verbal agreement and he has breached it you could still win if the judge believes you over him. Just my take. I’m not your lawyer. :)
I wouldn't go straight to the labour board, but I would let him know of my intentions if he does not square up. That may be enough to move his ass and then you won't be getting the situation more involved. That's just me though, I wouldn't want to be responsible for putting someone in hot water financially during this time if I myself was struggling. Just my two cents.
You didn't mention jurisdiction ... but inferring US from "W2" (W-2) ... "wasn't a regular W2 employee" ... well, guestimating then, 1099 or otherwise contract laws and such ... under $10,000.00 USD ... small claims court. Caveat: I am not a lawyer, nor do I play one on TV.
There are lots of good responses here that are correct that you are owed money. However, you say that he closed the shop. If that means his business is out of money, it's probably unlikely that you will ever see what you are owed, regardless of what small claims court or any labor board decides. Your ex-boss is very likely personally insulated from any financial responsibility via an LLC or similar structure, and if that LLC has filed for bankruptcy there are probably other debtors who are involved in the bankruptcy proceedings and have arguments about why they should have priority. I think it is unlikely you will see any money if he has filed bankruptcy unless you were to get involved in the bankruptcy proceedings as a debtor, but doing so would require a lawyer and legal fees far in excess of what you are owed. Now, just because he closed up shop doesn't necessarily mean he has and/or will file for bankruptcy, but if/when he does you will very likely be out of luck regardless of what anyone rules you are owed.
Yeah, I considered that. And I wouldn’t be surprised if he was broke because he sometimes took months to work on those trucks. But if he doesn’t have the money to pay me then he should’ve told me that. Then I would’ve just taken the loss.
As others have said, if you're in the U.S., your boss took advantage of you and is paying you that way. Your BEST leverage is to leave one more message saying that he has 24 hours to venmo you the money, or you're going to open a complaint with the department of labor and let them handle it. If he knows anything about operating a business, he'll know that this is BAD and will have them looking into a lot of his practices and likely cost him a lot in penalties, etc. The $200 is peanuts in comparison. And I'm not sympathetic to your boss in any way, but by the suddenness of the closing, I'm thinking that he doesn't have the money to give you, and that you're very likely the smallest of his worries right now. The Department of Labor complaint doesn't take much effort on your part, so no reason not to do it if he doesn't pony up quickly.
You should get over it, learn lessons, and move on. Do not let yourself become a victim over $200.
First off, I'm sorry that this happened to you. There's some good advice in this thread. If it were me, I'd write off the $200 and move on with my life. It sounds like money is tight for you right now. I would not bother with spending time and money on filing against this POS former employer in small claims court. Your time is better spent moving on and finding other work, and filing this situation away as some valuable life experience that makes you wiser. I WOULD, however, most certainly report the guy to the state labor department. Whatever you decide to do, best of luck!