Legal Question in Business Law in California

Is it Contract labor, or Employee

The EDD thinks that our employees are not contract labor because we give them use of our trucks. The work employees do for us is Servicing Customers on a route. These employees were payed per route, and never were givin a specific time to start and end the job. these employees also used the trucks for personal use. These Employees were told before they were hired that they were contract laborers, and were payed per route, not by the hour. If they did not complete a route, they did not get payed for it before they completed it. In addition, the exowner of this company has gone threw many health problems and was unable to see the EDD letters until after they put penaltys to the bill. We are unable to pay the $10,000 (3,200 original).

Do we go to court?

is there a way for them to reduce the bill to the orignal?

ARE OUR EMPLOYEES CONTRACT LABORERS?


Asked on 10/09/03, 3:39 pm

3 Answers from Attorneys
Donald Holben Donald R. Holben & Associates, APC

Re: Is it Contract labor, or Employee

This is work we do on a regular basis. Would be happy to meet with you without charge to discuss. There is a list of specific things the EDD/IRS and/or workers comp board looks at as to whether persons are contract people, employees and exempt and non exempt people. Your allowance of use of company vehicles begins loading the scale in favor of employee status. However, many other specific questions need to be answered and need to be argued before the board. Time limits are critical. Must meet time limitations for hearings and thereafter to appeal. If not meet the time limitations, you could be stuck. Call to discuss. Don Holben 800-685-6950.

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Answered on 10/09/03, 4:33 pm
Linda Allen Law Offices of LInda M Allen

Re: Is it Contract labor, or Employee

Thank you for your inquiry.

The EDD examines various factors in it's determination of whether a worker is an independent contractor or an employee. Probably the easiest (and least expensive) way to address the bill is to send correspondence to the EDD outlining what the job duties are, the pertinent law, etc. This may serve to reduce or elimate the penalties without going through formal proceedings. Please feel free to give me a call directly at 619.233.0900 if I may be of further assistance. Our offices are located in San Diego, California.

Sincerely,

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Answered on 10/09/03, 5:17 pm
Joel Selik www.SelikLaw.com

Re: Is it Contract labor, or Employee

It is possible to have penalties and interest on penalties reduced and a payment plan on the remainder. If you want to object to their classification so you do not have to treat them as employees in the future, this is something that should be reviewed in full, now.

You should know that the standards for employees versus independant contractors are weighted in favor of being employees.

Joel Selik, Attorney At Law

Ll.M. Taxation

www.TaxWorkout.com

800-894-2889

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Answered on 10/09/03, 8:43 pm


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