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caesarGus
01-03-2007, 10:46 AM
Hello,

This might seem like a little bit of a strange situation. I am trying to figure out how I should proceed with this.

I was brought onto a (start-up) company about 2-3 months ago. I was to be brought on as an independent contractor for a period (30 days). At which point I passed, and my pay was increased, but was never converted to a W-2 employee (in fact none of us were).

I decided to leave the company because they still did not have their act together, and I found a better position by then. I presented my resignation letter (one day notice - I know very unprofessional)

He decided to convert me back to an independent contractor, and said if I can complete something, he would pay me for it. At this point I had already worked 32 hours for him for that week, and he told me to leave.

I was told to submit my timesheet, and received a phone call saying that they were refusing to pay because I did not produce anything.

I do not have any contract with him in place, but technically I was an employee of his because he regulated the times that I worked, the location, and provided equipment.

I am planning on contacting the Labor board, after that I do not know what to do. The big question is do I have a leg to stand on?

Should I just forget it and move on, or make this guy's life hell?

BSPCPA
01-03-2007, 11:12 AM
caesarGus: The big question is do I have a leg to stand on?

Sounds to me like you have a two-legged position.

caesarGus: Should I just forget it and move on, or make this guy's life hell?

I don't think you should pursue a claim "to make this guy's life hell," rather you pressing motivation should be "to get paid the money you are legally owed."

ScottB
01-03-2007, 11:45 AM
brought on as an independent contractor for a period (30 days). At which point I passed, and my pay was increased, but was never converted to a W-2 employee (in fact none of us were).

:confused: So, you remained as an independent contractor?

I seriously doubt that you could have ever been legitimately classified as an independent contractor. If you were properly classified that way and your role never changed to being an employee, you would have to show that the classification as an IC was wrong and that you are owed for time worked. Otherwise, you would have to go to court (hopefully, small claims) and fight over what you are owed.

At the Federal level, you can contact the IRS about your classification as a contractor (fill out Form SS-8, I think it is) and the US Department of Labor.

In Nevada, the form you need to use for a wage claim is found here: http://www.laborcommissioner.com/docs/wageclaim.pdf

Neither the US DOL nor Nevada can help you if you were legitimately classified as an IC. Did you ever receive a paycheck that showed deductions for FICA? This would be proof enough, IMHO, that the company considered you an employee at that point and I would argue that all prior work, even if paid as an IC, should have been as an employee unless there was a substantial change in the working arrangement to warrant conversion from one to the other.

caesarGus
01-03-2007, 12:17 PM
Did you ever receive a paycheck that showed deductions for FICA?

They never got their payroll straightened out, so everyone was still paid with the business checks (that did not have taxes taken out)

Again, no contracts were signed, so I do not believe that I can actually be classified as an Independent contractor.

ScottB
01-03-2007, 12:26 PM
File the SS-8 with the IRS.

File with the US DOL.

File with Nevada.

You may not have the intention of making the employer's life hell and simply be trying to get paid what you are owed, but getting contacted by at least two agencies (the US DOL may defer to Nevada), will not make his life easy. Especially if he gets audited, in which case he could be on the hook for a lot more than what he owes you.

caesarGus
01-03-2007, 12:43 PM
Thank you for the advice, I will file the necessary paperwork today.

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