Legal Question in Employment Law in California

Workers Compensation

I am a subcontractor for parking lot sweeping. I am required to have a workers comp. certificate in order to get work from a contractor. The work is done at night and it is very difficult to find someone that wants to work at night. Usually they last 1 or 2 weeks max. That is the reason why I never set up a payroll. I had two guys helped me in 2006 and I decided to give them 1099's at the end of the year, because I never knew if this guys were going to show up for work the next day. The work they did was basically just to blow the leaves and dust out of the parking lot curbs so I could sweep it with the street sweeper. State Fund says that if this guys did not have a workers comp certificate of their own they are considered my employees and they want to charge me for the amount on the 1099 as payroll. I want to know if these guys really needed to buy a workers comp certificate to receive a 1099 and not be considered my employees and if state comp can really come after me for the amounts on the 1099's saying is payroll. Thank you.


Asked on 7/13/07, 3:08 pm

1 Answer from Attorneys
Terry A. Nelson Nelson & Lawless

Re: Workers Compensation

You'd better consult with competent employment counsel, as your assumptions and understanding of the rules is quite deficient. Just because you want to treat them as 1099 contractors for your convenience doesn't make it legal. You face legal and financial penalties, as do the 'employees', for handling it that way. If further state investigation of your records finds more of this, there will be more penalties. Get some help now to minimize your risks and liabilities, and represent you in the process you are facing. Feel free to contact me.

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Answered on 7/13/07, 3:19 pm


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