"1099 employees" Legal or Illegal?

Discussion in 'Florida Lawn Care Forum' started by LGL, Aug 20, 2012.

  1. zturncutter

    zturncutter LawnSite Bronze Member
    Messages: 1,308

    I agree on the legality issue and the liability issue, but if someone like my wife is an employee under the law and files for unemployment and that doesn't throw up a red flag what the H_ll does it take.
  2. larryinalabama

    larryinalabama LawnSite Fanatic
    Messages: 19,647

    I once got a 5$ bill for working for someone else...........just saying.
  3. Landscape Poet

    Landscape Poet LawnSite Gold Member
    Messages: 3,638

    I simply do not understand how this is legally possible. I hear a million guys talk about it and how paying cash to you employee is great...but my accountant says it is not legal of course and not as profitable as doing it the correct way.
  4. cgaengineer

    cgaengineer LawnSite Fanatic
    Messages: 15,778

    It's all fine and dandy until that 1099 "employee" hurts someone or gets hurt himself.
    Posted via Mobile Device
  5. ztman

    ztman LawnSite Bronze Member
    Messages: 1,115

    Key is (1099 vs employee) do you exercise control over the individual as to how and when they perform the service. Test is dominion and control. Doesnt matter what you call them on the books, its what they are actually doing and if you are telling them when and how to do it. Many try to get around the employee designation, but if they are really and employee, dont try to misclassify them.
  6. LGL

    LGL LawnSite Member
    Messages: 90

    Thats pretty much what my research has been showing, thanks for the comments.
  7. LGL

    LGL LawnSite Member
    Messages: 90

  8. fl-landscapes

    fl-landscapes LawnSite Silver Member
    Messages: 2,542

    He was probably breaking the law. Even a true 1099 sub contractor must have workers comp otherwise YOU are responsible for the fine.
  9. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Messages: 7,961

    In Texas you can get a waiver for WC from a sub contractor.
    On commercial jobs a smart commercial owner will not allow that by contract.

    My WC Carrier audits me and ask for copies of their coverage or they just increase my rates.
  10. jvanvliet

    jvanvliet LawnSite Gold Member
    Messages: 3,944

    We kill and eat our wounded...:p

    You can sub-contract out your work, you can even lease your equipment. You can spell out in the contract the scope of the work, timeliness and completion dates. Those are not unusual provision's in contracts and doesn't necessarily make you the employer.

    But if they get in your vehicles everyday and go to and from the job site everyday, if the equipment stays on your trailer... etc. etc. he's got flat feet, feathers and a yellow bill; he's a duck; or an employee.

    If everyone in the industry were forced to comply with labor laws, 80% of these jerks would disappear.

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