employed or self-employed?

[barnburner]

What is the name of your state?NC
My husband has been working for a company for 8years as a sub-contractor (self-employed) He goes in everyday picks up his job for the day, we pay our own health insurance, our own taxes (they withhold nothing), business expenses, etc. The company he has be sub-contracting for was sold, he has to sign a new contract with them, part of this contract said he could contract work from any other company or do any side business, but he is still not an employee. They pay nothing, just send him a 1099 form at the end of the year so by him not being an employee they are not required to pay any taxes and that increases our tax bill because we have to pay self-employment tax. This new company also cut the sub-contractors pay by ~35%-they justify this by saying it won't take as long to build this produce, however it takes longer. My husband did take a side job and the company got word of it and have terminated his employment. How can somebody be considered self-employed yet only be allowed to work for one company, isn't that an employee. I feel that they are just trying to get out of paying these guys benefits, paying taxes on them, etc. Are there any legal repurcusions? I don't think this is a fair business practice.

 

[Some Random Guy]

Talk to an employment lawyer, you should be able to get an initial free consultation. There are several 'features' of an employer-employee relationship. setting specific work hours and no side work clauses are just a few of them. Discuss with the lawyer if the company crossed the line and treated him as an actual employee, there may be some recourse if the facts are on your side.

 

[pattytx]

I agree with Random Guy. One of the major components in determining that a worker is an independent contractor is that he is able to, and does, offer his services to other companies. Restricting his work to the single company would most likely be considered a major indication that makes him an employee.

Your husband can also contact the NC or Federal Dept. of Labor and/or the IRS. I would suggest the state DOL as a first option. An attorney may not be necessary.