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Question

i am a 1099 contract employee and my current employer today started deducting workers comp insurance out of my pay check they are located in baton rouge, la and i live in rockwall, tx is this legal or are they reponsible for this. i have been in contact with the us dept of labor and they cant answer my question. hopefully you can.

Submitted: 401 days and 21 hours ago.
Category: Employment Law
Value: $30
Status: CLOSED
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Optional Information

rockwall, Texas

Already Tried:
just found out this morning

Posted by Stephanie O. Joy, Esq. 401 days and 21 hours ago.

Info Request

Dear sam,

Just to clarify, you say 'contract' employee, Do you mean independant contractor? 1099s are not given to actual employees, only self-employed, ie. ICs.

401 days and 21 hours ago.

Reply

yes, i am an independent contractor but i am only employed by this employer

Posted by Stephanie O. Joy, Esq. 401 days and 21 hours ago.

Answer

Sam,

 

FYI, as an IC, (if you truly are, which is up for debate at this point) you are not employed by the employer. Rather, you are basically a business and you provide a service to a client, that client being the entity you are referring to as employer.

 

However, since your company is putting WC insurance into the picture with you, I'm wondering if they are getting nailed for miscategorizing you (and others) as ICs when you are employees.

 

Classifying a worker as an independent contractor rather than an employee allows businesses to compensate their workers without withholding federal, state, and social security taxes and to avoid paying workers' compensation insurance, unemployment insurance, and employment taxes. Independent contractors aren't entitled to benefits a company may provide to its employees, including health insurance, paid vacation time, life insurance, disability insurance, stock options, and 401(k) retirement plans.

A number of recent cases have held that employers that classified their workers as independent contractors were wrong. The courts found that the workers were really employees, and the employers were required to pay back taxes, overtime, and various fines and penalties.

 

Now, given the above, as per LA law, http://law.justia.com/louisiana/codes/7/83573.html the employer is not permitted to pass off this expense to the employees covered. So there is likely something fishy going on here. I would contact the LA district office at http://www.laworks.net/WorkersComp/OWC_districtofficelisting.asp

 

Good luck with this this.

 

 

Hope this helps to clarify.


 

I believe I have answered your question and I hope you a better understanding of your legal issue as a result. As you know, I am only the messenger and can not create favorable law if it doesn't exist, so please don't hold it against me if the legal result is not what you wish. If your question was in fact answered appropriately please click the GREEN "ACCEPT" button NOW, in order that it be recognized as such and I receive credit for my work from the company. This will not cost you anything, if you already deposited to the company for this service. Your promptness is greatly appreciated. In addition, Positive "FEEDBACK" and BONUSES are also appreciated. If you need additional related follow up on this particular question afterwards, don't hesitate to Reply and I'm happy to help you. And if you would like my assistance in the future, just put my name, STEPHANIE JOY, in your title or first sentence of post. Please keep in mind that I can only respond to your post and the information contained in it, as I do not know what you know unless you describe it fully. Also, due to site tech reasons, oftentimes I am initially only able to see the first part of your post, so I apologize in advance if it means more interactions between us. At times, there can also be a delay of an hour or more in between my answers because I may be helping other customers or taking a break, or if it is late at night, I may have to go get some shut eye til morning, but rest assured, I'll be back for you. Thanks!

 

Sincerely,

Stephanie Joy

 

My Standard and Required Legal Disclaimer. The information given by me here is not legal advice. You should not and may not rely on anything on this website as legal advice and you agree that the nominal price you may pay for information here clearly does not pay for any legal advice. I am neither establishing nor accepting an attorney-client relationship with you. You must hire an attorney in your state as a matter of law, in order to receive legal advise and attorney/client relationship and rights. I do not claim to be licensed to practice in the state where this information is being provided or whose law would apply, if any. My licensing credentials are noted in my profile, which you have full access to. As law is always changing, you are recommended to speak with the appropriate legal counsel for accurate and complete information. Thank you and have a great day.

401 days and 20 hours ago.

Reply

i am a full time employee i have a company supplied phone, credit cards with their name and mine on them and business cards from them with my name and position.

you are correct about them doing this not haveing to pay taxes and benefits, i have been asking and been told several times he was working on me becoming a full time employee but he keeps putting it off on his accountant and attorney.

Accepted Answer

They appear to be in violation of a few items here. The question is, are you going to push the envelope or allow it to continue? I suppose it depends on what you have to gain/lose, particularly in this tight economy. It is funny how they take their swee. time when it is you paying the price and them saving, however illegitimately. (I.e. they are illegally categorizing you as an IC when the parameters of the job indicate your an employee (ie. the level of control they engage in over you and how you do the job). In any event, if you are an IC you are not entited to WC benefits and so you shouldn't be paying for it and if you are an employee, they are not allowed to pass on that expense to you. They lose either way, as far as I see it. Good luck!

 


I believe I have answered your additional questions and I hope you a better understanding of your legal issue as a result. As you know, I am only the messenger and can not create favorable law if it doesn't exist, so please don't hold it against me if the legal result is not what you wish. If your question was in fact answered appropriately please click the GREEN "ACCEPT" button NOW, in order that it be recognized as such and I receive credit for my time and work from the company. Your promptness is greatly appreciated. In addition, Positive "FEEDBACK" and BONUSES are also appreciated. If you need additional related follow up on this particular question afterwards, don't hesitate to Reply and I'm happy to help you. And if you would like my assistance in the future, just put my name, STEPHANIE JOY, in your title or first sentence of post. Thanks!

Sincerely,

Stephanie O. Joy, JA Legal Expert

My Standard and Required Legal Disclaimer. The information given by me here is not legal advice. You should not and may not rely on anything on this website as legal advice and you agree that the nominal price you may pay for information here clearly does not pay for any legal advice. I am neither establishing nor accepting an attorney-client relationship with you. You must hire an attorney in your state as a matter of law, in order to receive legal advise and attorney/client relationship and rights. I do not claim to be licensed to practice in the state where this information is being provided or whose law would apply, if any. My licensing credentials are noted in my profile, which you have full access to. As law is always changing, you are recommended to speak with the appropriate legal counsel for accurate and complete information. Thank you and have a great day.

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Expert: Stephanie O. Joy, Esq.
Pos. Feedback: 99.2 %
Accepts: 852
Answered: 2/13/2009

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