Missclassified as contract labor then fired

[jeanne.1661]

What is the name of your state (only U.S. law)?
Colorado

I worked for over 3 & 1/2 years for a company whose owner definitely missclassified ALL employees as contract labor.
I worked exclusively for this company and I was instructed very specifically as to how the work should be performed.
There are several unique circumstances her also:
I worked from home exclusively for the first 3 years-4 months. some time earlier I complained to the owner about my immediate supervisor, who began to treat me unfairly and verbally abusing me. That I can handle and while it did make me uncomfortable, I wasn't worried about losing my job because the owner and I had a solid, non sexual relationship. But after a few months even the owner was treating me like I was second class, I knew my supervisor had been discrediting me slowly but vigorously.

Soon I was informed that I would have to come in to work in the office. But another worker doing the exact same work I do, would not be required to work from the office. (It should be noted that the other worker chose not to speak out against the supervisor in the same meeting that I did).

All the while still another worker, who also happen to be sleeping with the owner, confided in me that she would be starting a business (in direct competition with the business we worked for) of her own.
When the owner heard about it he fired me for not telling him.
I plan to file a complaint but my question is regarding the extent of the penalties and/or fines he may have to pay. Also if he is found in violation, will he have to pay my taxes? Anything else he may be liable for?

All replies are welcome, please! What is the name of your state (only U.S. law)?

 

[Beth3]

When the owner heard about it he fired me for not telling him. Which is perfectly legal. You had information that is potentially very damaging to his business. You had a duty to disclose it.

I can't answer your specific questions about penalties but if you believe you were improperly classifed as an IC, then you should file a complaint with the Department of Labor. You don't have a case for wrongful termination if that's also what you're wondering.

 

[commentator]

You should also file for unemployment benefits, and when denied because you were a contractor and have no wages on file, you should appeal this monetary decision based on the fact that you should not have been classified as a contractor, that you were, in fact, a reporting employee by the definition in use in your state. Check it out at the DOL website.

The unemployment tax office will be very interested in your employer's situation. If it is determined that you were meeting the definition of an employee, not a contractor, and that your employer had not paid the correct unemployment taxes on your wages, you would be able to be monetarily eligible based on the general fund of the state.

Then it will be on to the appeal of the reason for termination. All the business about requiring you to come in when they didn't require others to do so may strengthen your argument that you were misclassified as a contractor, but it is not relevant to your receiving benefits or being fired.

Yes, in fact, they can fire you for not telling them something their girlfriend should have told them during pillow talk, but you can receiving unemployment benefits if they did not have a good misconduct reason for the firing.(And it is determined you were supposed to have been classified as a regular employee.) This misbehavior doesn't seem to rise to the level of misconduct, much less gross misconduct, so I'd venture you have a pretty good chance here of receiving unemployment, and helping your former boss figure out that he can't across the board call employees contractors and thus dodge his obligations.

 

[jeanne.1661]

Thank you for the great info

I will do just that today. If he is found to have misclassified me might he be required to pay me and/or the taxes?

I wanted to add that he never even called me or so much as sent an email firing me, but when I called he didn't answer my calls and my supervisor told me twice she'd call me back and she never did.

Does the fact that I had seniority and been there longer than anyone matter?

Thanks a million

 

[eerelations]

Does the fact that I had seniority and been there longer than anyone matter?

Thanks a million

Unfortunately, no.

 

[pattytx]

I will do just that today. If he is found to have misclassified me might he be required to pay me and/or the taxes?

Probably and probably; the IRS, for example, has different definitions for what an "employee" is for purposes of taxation than the DOL does. Having said that, though, such a finding is a very good indication that the IRS (and state taxing agencies, and the state UI agency) would find the same. Once you receive such a finding (if you do) YOU can report the employer.