Legal Question in Business Law in Nevada

What if any are the legal risks of using my personal truck to help people in moving if working strictly for gratuity only in Nevada?


Asked on 9/19/10, 6:25 pm

1 Answer from Attorneys

Jonathan Reed Reed & Mansfield

Times are tough and I respect people who try to make a few bucks by creating their own employment. However, you should understand that the gimmick of working only for gratuities is not really going to insulate you from all of the liabilities you would have working for straight fees.

In some cases the law makes no distinction as to whether you are moving furniture and other stuff for "tips", cash, or simple friendship. In other cases the law will see an attempted distinction between working for cash and for tips to be a phony distinction. The legal risks you face are these:

1) If your truck is involved in an accident and other people are hurt they will sue you.

2) I expect that your liability insurance on your truck does not cover commercial use. Your insurance company will view working only for "gratuities" as the same as working for a fee and may deny coverage to you if you are involved in an accident while moving stuff.

3) One of your "customers" could sue for damage to their possessions.

4) Local and state government may cite you for operating a business w/o a business license.

Card dealers and wait people long ago lost their battle with the IRS that gratuities are gifts and not income.

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Answered on 9/25/10, 12:42 pm


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