Legal Question in Employment Law in Arizona
Is it legal for a Bar/grill to hire a bartender and mislead them into thinking that they are an employee, by making them fill out all the required tax forms such as w4 and then only pay them in cash? Then later hand them a 1099 and you find out that they have not been deducting taxes, social security, or unemployment insurance even though they said they would when you got hired. This Bar/ grill has open for five years and apparently not set up a payroll. So from what I can deduct is that my wife was basically a contract worker working for this place. Even though no contract has been established. Is it illegal to have a contract worker in the restaurant industry as a bartender or server?
1 Answer from Attorneys
If your wife believes that the employer is not appropriately reporting her status as an employee, she can file a claim with the Department of Economic Security.