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Employee doesn't get a paycheck

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Will1211

Junior Member
What is the name of your state (only U.S. law)? South Carolina

I know this person who worked as a caregiver/butler for a person for 30 years. The employee did not get paid and still doesn't get paid but room and board. the employer justifies it in having the employee in his will to recieve two properties.

what rights does the employee have? he will retire in a few years but has no social security because he never got a pay check.
 


Proserpina

Senior Member
What is the name of your state (only U.S. law)? South Carolina

I know this person who worked as a caregiver/butler for a person for 30 years. The employee did not get paid and still doesn't get paid but room and board. the employer justifies it in having the employee in his will to recieve two properties.

what rights does the employee have? he will retire in a few years but has no social security because he never got a pay check.
Is this person able to come here himself?
 

Will1211

Junior Member
Is this person able to come here himself?
I can bring him here...he is a bit slow...but he understands , and he has been manipulated by his employer for years. He isn't to computer literate nor does he know anything about the law, so i'm trying to help him.
 
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Proserpina

Senior Member
I can bring him here...he is a bit slow...but he understands , and he has been manipulated by his employer for years. He isn't to computer literate nor does he know anything about the law, so i'm trying to help him.

I'm quite concerned here. I'm hoping your friend isn't going to end up completely screwed. With that said, two things: 1) wait for the other far more knowledgeable people to stop by and 2) Has anyone seen the legal documents pertaining to what he's supposedly getting?
 

Will1211

Junior Member
I'm quite concerned here. I'm hoping your friend isn't going to end up completely screwed. With that said, two things: 1) wait for the other far more knowledgeable people to stop by and 2) Has anyone seen the legal documents pertaining to what he's supposedly getting?
I have seen the will, but there is somethings that concern me in it, My friend will not have enough to live on even with the two properties. The employer does have 3 properties but is not leaving the third property to my friend, instead to someone else. I believe My friend Raymond(is his name) should get all 3 properties to be able to retire and pay his bills and such. The document is made up by the employer on a home computer and is not notorized. The properties in question are valued at 1)110k 2)136k 3)220k Raymond is to live in 1 and collect rent on the other other...which the rent would only be 1000$ a month which is not enough for him. Raymond is supposedly getting the number 1 and 2 properties.
 
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Will1211

Junior Member
No one has any advice on this situation? is there any recourse that can be pursued? Are there any criminal charges that can be brought against the employer? Any advice is appreciated. Thnx.
 

Will1211

Junior Member
Room and board in exchange for services was wages last time I checked.
I never said it wasn't Dave, but there are minimum wage laws and tax laws that i can think of that perhaps were violated. I would like someone with more knowledge to give some good sound advice on this situation, no offense but obviously you have none.
 

I'mTheFather

Senior Member
I never said it wasn't Dave, but there are minimum wage laws and tax laws that i can think of that perhaps were violated. I would like someone with more knowledge to give some good sound advice on this situation, no offense but obviously you have none.

"Obviously", you haven't bothered to do any research of your own. Also, you claim no offense, but "obviously" that was offensive.

Read and learn.

http://www.dol.gov/whd/regs/compliance/whdfs79g.htm
http://www.irs.gov/publications/p926/ar02.html

Did your friend ask you to post his situation on the internet??
 

davew128

Senior Member
I never said it wasn't Dave, but there are minimum wage laws and tax laws that i can think of that perhaps were violated. I would like someone with more knowledge to give some good sound advice on this situation, no offense but obviously you have none.
No offense, but conservatively speaking I am considered one of the best tax compliance people in the country. Obviously I know a thing or two about wages and room and board in exchange for services is considered wages. There may issues with providing withholding to the extent its taxable, but it IS compensation. Whether it meets minimum wage and labor law standards is a different manner, but showing a condescending tone towards me based on my correct answer is a little misguided.
 

LdiJ

Senior Member
No offense, but conservatively speaking I am considered one of the best tax compliance people in the country. Obviously I know a thing or two about wages and room and board in exchange for services is considered wages. There may issues with providing withholding to the extent its taxable, but it IS compensation. Whether it meets minimum wage and labor law standards is a different manner, but showing a condescending tone towards me based on my correct answer is a little misguided.
Room and board in exchange for wages with no proper W2 reporting? No social security or medicare taxes paid?
 

Will1211

Junior Member
No offense, but conservatively speaking I am considered one of the best tax compliance people in the country. Obviously I know a thing or two about wages and room and board in exchange for services is considered wages. There may issues with providing withholding to the extent its taxable, but it IS compensation. Whether it meets minimum wage and labor law standards is a different manner, but showing a condescending tone towards me based on my correct answer is a little misguided.
Well now this is more helpful than your last 1 sentence quote...i really didn't understand why you even posted it. So there is issues providing withholding this taxable income - room and board as wages. And perhaps min. wage and labor laws.


(Sorry about the condescending tone i wasn't aware you could hear me lol...) anyways this is the sort of stuff i need to know...thnx for your reply.
 

davew128

Senior Member
Room and board in exchange for wages with no proper W2 reporting? No social security or medicare taxes paid?
Didn't say it was done properly. Without researching it though, I seem to recall an exemption of income for certain types of employees who receive room and board on the employer's premises for the convenience of the employer. If thats the case then the income would not be reportable to the IRS and withholding isn't an issue. There would probably still be a labor law issue with regards to minimum wage depending on the value of the room and board versus number of hours worked, but it involves facts not provided.
 

davew128

Senior Member
Bringing this back up as I was researching the law for another reason. From IRC 119:

(a) Meals and lodging furnished to employee, his spouse, and his dependents, pursuant to employment
There shall be excluded from gross income of an employee the value of any meals or lodging furnished to him, his spouse, or any of his dependents by or on behalf of his employer for the convenience of the employer, but only if—
(1) in the case of meals, the meals are furnished on the business premises of the employer, or
(2) in the case of lodging, the employee is required to accept such lodging on the business premises of his employer as a condition of his employment.

In other words, its not taxable income, its not reportable income, and doesn't count for purposes of earning social security benefits. In addition, state law doesn't matter at least so far as the tax component is concerned.
 

LdiJ

Senior Member
Bringing this back up as I was researching the law for another reason. From IRC 119:

(a) Meals and lodging furnished to employee, his spouse, and his dependents, pursuant to employment
There shall be excluded from gross income of an employee the value of any meals or lodging furnished to him, his spouse, or any of his dependents by or on behalf of his employer for the convenience of the employer, but only if—
(1) in the case of meals, the meals are furnished on the business premises of the employer, or
(2) in the case of lodging, the employee is required to accept such lodging on the business premises of his employer as a condition of his employment.

In other words, its not taxable income, its not reportable income, and doesn't count for purposes of earning social security benefits. In addition, state law doesn't matter at least so far as the tax component is concerned.
Right...but it does violate the minimum wage requirement. That refers to meals and lodging provided as a benefit of employment rather than in lieu of any wage.

Typical instances are farm workers, ranch hands, domestic employees etc.
Again, though, its not in lieu of a wage.
 

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