Legal Question in Business Law in Illinois

As a franchise attorney I can say many employers attempt to get around their employment obligations by saying things like you are a sub-contractor or independent contractor. This doesn't fly with the IRS and state agencies. You should contact your local employment development department or labor department to report the situation. They will investigate and take appropriate action. If you were an employee acting in the course of your employment, the employer will have responsibility. Consult with a good business or franchise attorney in your area for specific advice if this becomes necessary.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Attorney

Franchise Foundations APC

I agree w/ Mr. Murphy, and there are several factors involved with whether you are an "independent contractor" or an "employee". The IRS provides the most comprehensive set of "tests" or "rules" that you can review at:

http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

My question is always what were the groundrules when you were "hired". Most younger folks (like yourself?) don't get properly orientated for a "job" like this, and don't understand what the ramifications are. If you are truly an independent contractor the concept is that you are compensated for your delivery services, that include use of your personal car, but rarely are you told you have to let your insurance company know, etc. Or that if you are injured, or injure someone, you have to have car insurance. Or whether you're covered by worker's comp. etc. And one of the "big" things is whether at the end of the year you receive a W-2 with tips withheld, or whether you receive a 1099. If you get a W-2, trust me, the employer knows you are an employee and is just trying to get away with not having to pay a "real" delivery service. But it's done all the time and of course the object is tips, right?

You can choose to report the situation, but you may want to do it anonymously....

The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is currently licensed to practice law actively only in the State of Illinois, inactively in Florida. Responses are based solely on Illinois law unless stated otherwise.

I doubt you are an independent contractor in the eyes of the government. Does the restaurant tell you when to work, how to work, what to wear? Do they make you put a big ugly sign on your car? Do they withhold state taxes, federal taxes, social security, and unemployment insurance from your paycheck? Do they give you a W2 at the end of the year? Did you sign an independent contractor agreement with them? You might also ask your insurer to provide you with the exact provision of your policy which allows them to deny you coverage because you are delivering pizzas. Sounds like a lot of folks are trying to leave you holding the bag.