Legal Question in Employment Law in California
Employment Tax/Wages
Hi There,
I've been paid as an independent contractor for 2 years, even though I fulfill all of the requirements of an employee/employer relationship. (I even had to go through employee reviews.) Can I successfully argue this in court to get my employer to pay their portion of taxes for which employers are usually pay such as Social Security, Worker's Comp, etc? Also, if I have documentation from my boss to the accountant to implement a raise last year, was never told I wouldn't get a raise, and was not paid accordingly, can I ask for retroactive back pay for the difference?
2 Answers from Attorneys
Re: Employment Tax/Wages
Sure, you can file your action and possibly make them pay their share of your deductions that you all thought you avoided by claiming 'independent' status. They will alos have to pay penalties and interest on it. You will likely have to do the same -- pay your share, with interest and penalties for your failure to report and pay correctly at the time. You got your money without any deductions being withheld. Now they will be paid out of your pocket. This is a sleeping dog that probably should not get kicked.
Re: Employment Tax/Wages
The are specific criteria that are factored into whether one is an employee, as opposed to an independent contractor. From your brief statement, you have facts which would indicate you were treated as an employee but a more thorough review of your employment situation must be considered for a more definitive opinion.
You do not have to sue to receive the benefits deprived of. Both EDD and the California Labor Commission conduct audits of employers suspected of misclassifying employees to avoid their legal obligations toward their employees. Each department invesitgates for different purposes but they often work together.
Wages are a matter of contract. If this employer made an agreement to you to pay a certain wage rate, but failed to pay pursuant to that agreement, you can go after them for the wage diference. Depending on how much is owed, you can either file a claim with the Labor Commissioner or sue them in court, which is much more expensive.