Legal Question in Employment Law in Arizona

My company has changed its name and LLC. They told all of the employees that for the first two years of forming the new LLC they have the choice to classify there employees as 1099 contractors, and have. No taxes have been taken out of our first check. They have made some questionable deductions for some of the employee's checks. I would like to know if this is legal and if not who can I talk to and what can I do about it.


Asked on 1/21/11, 4:26 pm

1 Answer from Attorneys
Donald W. Hudspeth The Law Offices of Donald W. Hudspeth, P.C.

Sounds questionable, especially if you work there, use company facilities, have no other employment and do not have your own business name and entity. Also, this is a "nuclear bomb" for the business and its owners when the taxes with penalties and interest are assessed for which there is personal liability and which generally may not discharged in business or personal bankruptcy. I would talk to Arizona Wage and Hour Board.

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Answered on 1/27/11, 6:18 am


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