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View Full Version : Are 1099's eligible for OT ?


TheCanadian
04-25-2007, 01:39 AM
My father works for a company on an hourly basis. However he gets paid thru 1099's. It's a small company with 7 employees. He usualy works 50+ hours a week but never gets paid overtime.

Is he eligible to demand to be paid overtime ?

cbg
04-25-2007, 01:47 AM
If he is truly an IC, it depends entirely on what his contract says.

TheCanadian
04-25-2007, 02:31 AM
If he is truly an IC, it depends entirely on what his contract says.

He's not really an IC but the whole company is setup this way in order to shift the burden$$$ of workers comp to the employees.

Every employee is 1099'ed but non of them are really IC's

cbg
04-25-2007, 02:44 AM
Then the company has bigger problems than paying overtime. It is illegal to treat someone as an IC when they don't qualify as such.

But I'll let Patty or Scott go into the details; they're better at them than I am.

TheCanadian
04-25-2007, 03:02 AM
What makes for the qualifications of an IC ?

cbg
04-25-2007, 03:15 AM
Hold on for one of the payroll people. They can explain it better than I can.

Pattymd
04-25-2007, 03:59 AM
And the IRS explains it even better than I.
http://www.irs.gov/taxtopics/tc762.html

ScottB
04-26-2007, 11:51 AM
Contractors only get paid what they contract for. It is possible for them to get paid overtime, but that would depend upon the job and the contract. In the absence of an agreement to pay overtime, I would think none would be owed.

If the person is not a legitimate contractor, but an employee, then a whole different set of rules come into play.

tarheit
04-26-2007, 12:47 PM
It shifts a lot more than workers comp to the employees. IC need to file as self employed, probably paying taxes (federal, state, and local) quarterly and pay additional tax (a portion of the SE tax) normally payed by the employeer. The company could be in hot water if they aren't IC.

-Tim

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