Legal Question in Business Law in Indiana

I work for a cab company in Elkhart Indiana we are not set as employees in the books we are in the books as 1099 vendors.
However we are still forced to follow a strict scheduling of 12 hour shifts.
We recieved training and must adhear to all guidelines set by the Taxi company.
We use the companies vans and are not permitted personal calls or clientell.
Our pay is not hourly or salary it is a 40 percent cut from all money brought in by us for that week.
So if we make $100.00 a week we would only get paid $40 for that week while being forced to work 12 hour shifts.
Do they recieve protection from the safeharbor guidelines or is this completely illegal?

Asked on 10/25/10, 11:05 pm

2 Answers from Attorneys

Kevin B. Murphy Franchise Foundations, APC

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Any attorney will say you should investigate whether this is an independent contractor or employment relationship. Many companies use "independent contractor 1099" arrangements to avoid complying with their employer responsibilities, including overtime, minimum wage, payment of social security taxes, etc. You can contact the IRS and your state's employment development or labor department. They will investigate and take appropriate action. Consult with a good business attorney in your area for specific advice.

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

Franchise Attorney

Answered on 10/31/10, 7:49 am

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