Legal Question in Employment Law in Ohio

My sister was 1099'd this year, but I don't think she should have been. She was a bartender, but they 'promoted' her to General Manager at one of their bars. When they made her GM, she was told she had to sign an Independent Contractors agreement that said she is to operate under their rules and regulations. She also signed a non-compete within 'a reasonable radius of establishment' (60 miles, how is that reasonable??) Her boss says they've done 'countless hours of research' on the subject and swears what their doing is legal, but I don't agree. They 1099 ALL their bar managers, and I think it's to get out of paying payroll taxes. They are paid salary, have a set work schedule, have employees under them, etc. Is there anyway that what they're doing is legal? I'm tempted to file form SS-8, but don't want to get my sister in trouble or fired.


Asked on 4/17/13, 6:50 am

1 Answer from Attorneys

John Sauter Cloppert, Latanick, Sauter & Washburn

Information about the misclassification of workers can be found here: http://www.nelp.org/page/-/Justice/1099edFactSheet2010.pdf?nocdn=1

I don't specialize in wage and hour litigation, so I can't speak for the legality (or lack thereof) of what your sister's employer is doing.

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Answered on 4/22/13, 11:16 am


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