Legal Question in Employment Law in Florida

Stop payment on a subcontractor's check, legal or illegal?

If a person is working on a 1099 basis as a consultant to a firm and works out of that firm, is he considered and employee?

The consultant is paid weekly by means of the corporate check book, not a payroll check. Each check is wrote up as an ''advance''. The firm decides to terminate the services of the consultant. The firm had issued a check to the consultant for $700. The firm placed a stop payment on that check because there is no need to advance the consultant. Is it legal to place a stop payment on that check?


Asked on 3/02/01, 11:05 am

1 Answer from Attorneys

Re: Stop payment on a subcontractor's check, legal or illegal?

You have really raised two issues in this question. First, are you an employee or independant contractor. You cannot simply call the person a consultant and issue a 1099 to save taxes and make for a simple life, if in fact they should be classified as an employee. If the company controled your hours and/or told you how to do your job and/or provided you with the means to do your job, then maybe you were an employee entitled to minimum pay rates and overtime. Second, as to check. In general a company need only pay for services they receive or contract for. You need to decide what the case was here.

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Answered on 5/04/01, 4:43 pm


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