Legal Question in Construction Law in New York
I am a contractor in N.Y. D.B.A.'ed under myself. Currently I am subcontracting. is it legal for the company that I am doing work for to withhold 20% of my checks under the guise of it going to pay for workers comp. on me?
2 Answers from Attorneys
The test for whether someone is an employee or independent contractor is somewhat blurry and includes multiple variables, including whether you control your own hours, whether you control the means and methods of operations, whether you are applying specialized expertise without supervision, whether the work is short term or long term, etc. See: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Self-Employed-or-Employee
The biggest question is whether you have workers compensation insurance. If you do, you should not both be having to pay workers comp for the same workers, but you do not have workers comp, he needs to ensure that everyone on the project is covered.
1. Do you have your own WC coverage? If so, then this is 100% bogus and you should file a Notice of Lien.
2. If not, then you need to test the loading and whether their contract forms allow for this. You have a trade dispute. There are lawyers who handle this kind of thing. We get paid for this ;-}
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