Non Compete

[dan4self]

What is the name of your state? NJ <The company I work for is HQed in NY. All the employees are employed as 1099 sales people. We are provided health insurance and are expenses are paid by the company. We are also provided an office, laptops, phone service, interenet, copiers, fax....you get the idea. The structure of the hours and work is dictated by the company.

From my understand all of the above contridicts a typical 1099. The company states they have been grandfathered this arrangement by the government. We have new offer letters each year that specifically state that the letter is not a contract.

Does all of this add up?
Is this possible?
Can a noncompete be inforced for a 1099 sales person?

 

[Beth3]

From my understand all of the above contridicts a typical 1099. Yes, that all certainly seems to clearly indicate you are not an independent contractor but rather an employee.

The company states they have been grandfathered this arrangement by the government. I find that highly doubtful. There are multiple and completely separate independent tests that must be applied in order for an individual to meet the criteria as an IC and I find it very dubious that separate branches of the government, including the IRS, would say it's okay to violate the law.

Does all of this add up? Not in my opinion.

Is this possible? Anything is at least possible.

Can a noncompete be inforced for a 1099 sales person? I don't see why not.

 

[pattytx]

At least for the IRS, there is such as thing as "530 relief" which is a break for the employer who had previously misclassified employees as ICs. However, this only relates to federal employment taxes; it has no affect on whether the DOL would consider you an employee or not, although it sure sounds like you are one. They're very rare.

It might be advantageous for you to contact the state (first) or Federal Dept. of Labor and tell them your situation and what your employer has said.

 

[dan4self]

1099

At least for the IRS, there is such as thing as "530 relief" which is a break for the employer who had previously misclassified employees as ICs.
It might be advantageous for you to contact the state (first) or Federal Dept. of Labor and tell them your situation and what your employer has said.

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How do i found out if my employeer qualified for 530 relief?

How would it be advantagouos?

If they did not get 530 relief, is there a whistler blower opportunity with the IRS?

 

[pattytx]

You personally, may not be able to find this out. However, if you call the IRS and report that you think you are being classified incorrectly, they will investigate.
Whistleblower opportunity, as in money, I take it? No idea.