Employer having me work full time despite deciding that I'm a "freelancer."

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I have been working for time for my boss, I am technically her employee. In January she told me I was a freelancer and she filed a 1099. She refuses to change my status and has continued to have me work for time. She won't give me a contract detailing what I'm supposed to do as her "freelancer." What are my options?

Attorney Answers

3
Kristine Karila ·
No contract is required but wise for each of you if you are truly a "freelance" independent contractor. It appears that you believe that you are an employee and not an independent contractor. Many companies make the mistake of misclassifying a worker as an independent contractor to avoid labor laws, including having to purchase workers' compensation insurance. In addition, if she isn't taking out EDD payments and other taxes, if you get fired, etc. you will have a very hard time collecting unemployment compensation. It may be worth your time to consult with an employment law attorney. 949-481-6909
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Brad S KaneLandlord / Tenant LawyerLos Angeles, CACA licensed ·
First, you may be an employee, but misclassified as an independent contractor by your employer, who wishes to avoid their financial and legal responsibilities. For a summary of the issues relating to misclassification go to: http://www.dir.ca.gov/dlse/MisclassificationOfW Second, if you are actually an employee, you additional legal rights. If your employer terminated you for asserting that you were an employee by filing a claim with the IRS or Division of Labor Standards Enforcement, you probably have a claim for termination in violation of public policy. Employees, unlike independent contractors, also have protection from many types of discrimination and other protections. Third, if you are actually an employee, you should be entitled to many benefits, including but not limited to unemployment, worker's compensation and disability benefits in the event of termination or injury. Thus, if your employer terminates you for claiming employee status you should consider applying for unemployment benefits. You may also be entitled reimbursement of the employer's portion of your taxes paid as an independent contractor as well as reimbursement for expenses such as mileage. You can file a FREE claim with the Division of Labor Standards Enforcement or you should immediately consult with an attorney to go over the specific facts of your case. http://www.dir.ca.gov/dlse/howtofilewageclaim.htm
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Marilynnmika Spencer ·
The general rule is that a person is an independent contractor (or "freelancer") if the employer has the right to control or direct the RESULTS of the work but not HOW the work is done or even WHAT work is done. It sounds like you are an employee and not an independent contractor, so you should consult with one or more experienced employment law attorneys with whom you can discuss the details of your situation. Many employers misclassify workers as independent contractors and pay them as "1099 employees" when in fact they should be classified and paid as regular W-2 employees. Employers receive a substantial benefit from doing this, but there is NO benefit to the workers. If a worker is wrongly classified as an independent contractor instead of an employee, that worker will not be eligible for many benefits of employment or eligibility will be reduced. Areas affected include the right to: – be paid for all hours worked or controlled by the employer; – the legal minimum wage; – overtime pay; – rest and meal breaks; – workers' compensation insurance; – Social Security contributions; – unemployment benefits; – state disability benefits; – employer benefits such as vacation, sick leave, pension, medical insurance, etc. Also, in some states, including California, employers are subject to a penalty if they misclassify employees as independent contractors (see below). There are different ways to determine if a worker is an employee or independent contractor. Employers must comply with all relevant laws. FEDERAL TAX LAW: The Internal Revenue Service (IRS) looks at three areas to determine a worker’s status: Behavioral Control – This area considers instructions and training. If the employer has the right to direct or control the work, even if it does not exercise that right, the worker is an employee. These instructions might include when to do the work, or how and where to do it; what equipment or tools to use; who the worker can hire or not hire to help get the work done; what supplies and services to buy, and/or where to buy them. If the employer trains the worker in required methods of doing the work or the procedures to get the work done, this is evidence the employer wants things done its way, which indicates the worker is an employee and not an independent contractor. Therefore, if the employer gives the worker detailed or extensive instructions on how to get the job done, the worker is probably an employee and not an independent contractor. Financial Control – This area considers who has the right to direct and control the business, not just the work. The more of a financial or promotional investment the worker has made in the work, the more likely the worker is an independent contractor. However, there is no requirement for an investment in order to meet the definition of independent contractor. If the worker incurs expenses in performing the work but is not completely reimbursed, the worker is more likely to be an independent contractor rather than an employee, especially if these expenses are high. If the worker has the chance to make a profit or loss on the work, the worker is probably in business for himself or herself and therefore an independent contractor. Relationship of the Parties – If the worker does not receive benefits such as medical coverage, vacation, or pension, the worker may be an employee or an independent contractor. However, if the worker receives benefits, the worker is probably an employee. (continued in Comment below)
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