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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Employment Law
Satisfied Customers: 111487
Experience:  20+ Years of Employment Law Experience
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I own a locksmith company - currently my technicians are sub

Customer Question

i own a locksmith company - currently my technicians are sub contractor >1099
however i am looking to try employment however not with w4 but to give them their pay via company check ,they will work the legal amount of hours and days ,and in the end of the year they will still be 1099.
the reason i dont want all the employment laws etc , what will be the safest legal way for me to use this method .
Submitted: 11 months ago.
Category: Employment Law
Expert:  Law Educator, Esq. replied 11 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Unfortunately, you cannot just "try employment" without paying unemployment tax and workers compensation insurance and making proper deductions from their pay for social security.
Furthermore, I am afraid that even though you now call them independent contractors, they may really be employees anyhow, which could cause you a bigger issue. In order to determine if they are employees, the IRS and Department of Labor look at your control over their work, such as providing tools, equipment for them to work, or if you direct their work hours (time of work, where they work). So right now they may already be employees, even though you are calling them 1099 independent contractors. See: https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Self-Employed-or-Employee
See also: https://www.irs.gov/taxtopics/tc762.html
You need to seriously evaluate your employee/contractors to make sure you are not improperly classifying them, that is the first step.
If they are truly independent contractors, then leave them that way, because you trying what you mention above you cannot do without taking proper taxes and paying workers compensation. If you find your workers really should be employees and you have misclassified them, you need to fix it and not ignore it because if you are caught misclassifying it could cost you significant money in fines and penalties to the IRS and to the Department of Labor.
Customer: replied 11 months ago.
ok
so if i hire technician as w4
what is the safest what to ,make them work 6 days a week like i see other companies do ?
Expert:  Law Educator, Esq. replied 11 months ago.
Thank you for your reply.
As they would be "at will employees," they are required to work any time the employer needs them to work. So you set the rules and if they refuse to work as you need them, you can fire them. The law says only you have to pay your employees for the time they work and if they work more than 40 hours in a week, you have to pay them time and a half. As long as you are paying them to work, they must work or you can fire them for refusing to work, which is a basis for them to be denied unemployment. An at will employee can be made to work as many days or hours in NC as the employer requires, so you set your terms of employment.
Customer: replied 11 months ago.
basically i sent up an employee contract and in that work contract i mentions the jobs requires 6 days a week 50 hours etc ?do you make these contracts ?
Expert:  Law Educator, Esq. replied 11 months ago.
Thank you for your reply.
You need no written contract at all, that just complicates matters. You hire the employees as "at will employees" meaning without any contract. When you hire them you let them know the hours of employment/days of employment and their rate of pay, which you can do in an offer letter to them. You do not need a contract and most employers do not use them.
Customer: replied 11 months ago.
what type of proof i would have if i fire someone that my requirements where such and such they last a month but they just cant do it
dont i need to show the department of labor in north carolina why i should not pay unemployment ?
Customer: replied 11 months ago.
also
if i hire subcontractor technician as an apprentice locksmith can i sign them up on a none compete agreement ?
and in what cases i can not ?
Expert:  Law Educator, Esq. replied 11 months ago.
Thank you for your reply.
You can have it in an employee manual or simply a memorandum to all employees with the requirements for the position. No contract is necessary and in fact, even in the memorandum to the employees you specify that their employment is at will and the memorandum does not create a contract and you can change the terms as you deem necessary.
Most all at will employers have nothing in writing, it is just the terms they set forth, that is the good thing about at will employment for employers and the laws are all slanted towards the employer, not the employees.
You can make any employee, even an at will employee in NC, sign a non-compete agreement if you choose to do so.
Customer: replied 11 months ago.
What about subcontractors locksmith can I sign them ?onnine compete .About at will employee how do I Moshe them at will are there specific forms or what classify them legally as at will employee
Expert:  Law Educator, Esq. replied 11 months ago.
Thank you for your reply.
I quite honestly see what your set up may be from what you are saying and I would say you run a risk here these people are employees not contractors. However, under NC law, even if they are contractors you CAN still have them sign a non compete agreement.