Legal Question in Employment Law in California
musician as employee
A musician has worked 3 nights a week at a country club for 3 hours each night and has had employee status there for the past 6 years. The musician was told that to keep being an employee according to the law he would have to work 4 hours a day or become an independent contractor instead. Furthermore, he is being forced to work this additional hour for less pay per hour. He had been receiving $100 per night for 3 hours and now is the management insists he must work 4 hours for the same $100. In addition management has taken away his tip jar and says any tips must now be reported to them so that they may pay the taxes on them. In the past he has declared his tips on his tax return and paid the IRS himself any taxes owed. Is management correct or does the musician have recourse on any of the above items?
1 Answer from Attorneys
Re: musician as employee
The questioner is assumed to be a California resident working for a California employer. The test for determining employee status is generally not tied to how many hours a person is required to work. The statement made by the employer regarding independent contractor status therefore is suspect. If given a choice and you would otherwise qualify to be classified as an independent contractor, your entire compensation, e.g., tips, would be your only source of income unless an agreement between the employer and you provided for the payment of compensation (which may include your tips). Based upon your question, it would appear you have always considered yourself to be an employee, however. In general and unless otherwise provided for by an express employment contract with your employer, the employer may require you to work 4 hours for the same amount of compensation. The reason: the presumption in California is that all employees are considered to be "at will" employees. That is you can quit anytime, with or without notice, without any fear of retribution. Similarly your employer has that same right. The at-will employee's claim for wages is based upon the understanding between the employer and employee. This can be changed if business conditions warrant it or unless your agreement with the employer was different. If you disagree with the employer's desire to reduce your wage, you always have the right to quit and find another job. However, the employer may not be able to reduce your wage or increase the required time worked. With respect to your tips, they may not belong to your employer if you can establish that fact through a prior understanding with your employer. If you feel you are being denied payment of a lawful wage, you should make an appointment with the local office of the California Labor Department. You should also consider consulting with an attorney to examine the real intent of the employer.