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View Full Version : What are the LAWS, when dealing with SUB'S?


MOW ED
04-12-2001, 08:42 AM
What is the LAW on Sub's?
I have a friend that owns a restaurant and a current (soon to be ex) employee of his has stated he is quitting to work as a subcontractor for a local lawncare company.

I know this guy and he doesn't have any equipment or vehicle to tow a trailer and when I asked my friend to pry a little he told me that this guy is using the LC's equipment and vehicle.

Am I wrong in my belief that a subcontractor is supposed to furnish ALL equipment,insurance, and labor for the main contractor?
Where would a guy report violations of these rules assuming that a violation is taking place?

It seems to me this contractor is taking advantage of this kid and I'm sure this kid won't be insured.

What would you do?

BRL
04-12-2001, 12:11 PM
This site will help with some of these questions.
http://www.irs.ustreas.gov/plain/tax_edu/faq/faq12-2.html

And to answer your last question, nothing. Unless the LCO steals one of my customers that I'm friendly with. I would then inform the customer about the dangers of using a contractor who is not operating legitimately. If I was friendly with the kid I would tell him what he's getting into. Otherwise, I'm a contractor not an IRS agent. I don't have time to police the hundreds of LCO's operating in my service area.

parkwest
04-12-2001, 12:26 PM
Criminal Investigation Division of the IRS. They will pay you a commission of what they recover.

John Allin
04-12-2001, 12:56 PM
There is an excellent reference guide available on subcontracting and the laws that apply....

"Hiring Independent Contractors - the Employer's Legal Guide", written by Attorney Stephen Fishman, published by Nolo Publishing and available at Barnes and Noble. You can buy it on-line.

If this fellow is operating illegally, then the IRS, the State Bureau of Employment Security and the Federal Labor Board, State Workers Compensation Office, and the State Department of Revenue will all be interested in chatting with that individual at some point (if they know about the situation)

Wisconsin Workers' Compensation Division
Dept. of Workforce Development
201 E. Washington Ave
Madison, Wisc 53707
608-266-1340

Wisconsin Department of Revenue
P.O. Box 8906
Madison, Wisc 53708-8906
608-266-1961
http://dor.state.wi.us

State Unemployment Tax Agency
Wisconsin Department of Industry, Labor, and Human Relations
P.O. Box 7946
Madison, Wisc 53707
608-266-3177
http://www.dwd.state.wi.us

Stonehenge
04-12-2001, 01:09 PM
Mow -

There was a long thread about this topic somewhere on LS - I don't recall if it was landscaping or lawncare. But anyway a guy was going to hire something like 250 kids as subs, and provide them with equipment to mow. Then there was discussion of whether they were then, in fact, subs.

Run a search to find it in one of those 2 forums.

Other than that I can't be of much help - I do nothing as a sub or with subs.

MOW ED
04-13-2001, 01:10 AM
Thanks for all the info guys.

Stonehenge,
I remember that post and will try to look for it. If I recall correctly, it had quite a bit of activity.
Happy Easter!!