Legal Question in Business Law in Georgia
I recently purchased a small advertising income-based publishing company in GA. The ad sales person is a 1099 contractor who "came along with the business" and gets 25% of all ads they sell. We have no written contract.
In trying to automate (and grow) our lead, sales and marketing efforts I asked the sales person for their contact list. They are refusing to provide any information. Who owns the sales contacts, and what should be my course of action?
Thank you.
2 Answers from Attorneys
You can't have your cae and eat it too. When you, and the former owner, skirted labor laws and tax laws and pretended an employee was an independent contractor, you legally are stating he is NOT an employee and you have NO control over him. The lists are his. Both of you should have used good legal help in advance and created contracts that covered this issue.
As stated above, if he is being treated as an independent contractor, absent some agreement otherwise, he would own them.
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