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Employer will pay me under the table only!

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aquarius

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

Hello everyone. First time poster here. I have a couple issues with an employer. I work part-time, and I'm also a full time student.

1) I started working for a small auto repair business about 2 1/2 months ago. I am the only employee, besides the owner of the business. Since I started working there, the owner of the business refuses to send my tax forms into the IRS. I worked for him for the first month, and he paid me with a personal check. He told me that he would get me the tax forms for me to fill out. I filled them out and there they sat in his office for 6weeks. He continued to pay me with a personal check during the 6 weeks.

I asked him about the tax forms, and he said that, "My accountant will charge me too much to do your payroll. Therefore, I will send all of your tax info. in at the end of the year. Just be sure to set money aside, because you will have to pay a lot of taxes then. You will be paid by a personal check for the rest of the year."

Now, I know that this is definately illegal. But, I don't think he can really get into that much trouble. From what I've been able to dig up on this, he will just get fined $24 by the IRS for not reporting me as an employee.

Therefore, I have a few questions:

Is this right?
Is that all that can happen?
Why would an employer do this? (I told him I want to be legit and pay my taxes. I do not want to work under the table)

2) With the situation above, I have some additional concerns as a result:

a) I'm assuming that since technically, I'm not really "employed" by this business, I have no employee rights. I will not be able to file a claim with the EDD should I lose my job there. Also, if I get hurt at work, I will not be able to claim worker's comp. I suspect that this is the REAL reason for him not reporting me as an employee - he doesn't want to pay for worker's comp insurance. He is merely lying about the accountant charging him too much.

b) Since my whole purpose of me working there, is to allow the owner to have time off, I am always at work by myself. In addition to my job duties as a mechanic, I also have to act as a cashier. Every car that I work on, I have to bill out the customers. I make out their bill, and collect the money from them. There is no formal method of counting the till, or keeping track of the money. A couple times, I came to work, I had to borrow money from the shop owner next door, because my boss forgot to leave cash in the till for me to make change with.

I feel uneasy about this because I'm afraid that sooner or later, I might be accused of money being missing - even if I know I didn't steal any money. It's also rather strange that he told me that he fired the last guy becasue he was stealing money from the till.

Anyways, what are my rights about the money? I don't think that I can be held accountable for the money, since I havn't been bonded. Nor, is the cash drawer or till ever counted where it is initialed by both him and me.

Where would I stand if he accuses me of stealing money?

3) Oddly enough, I really like working at this shop. The owner seems very laid back, and is a nice guy. Although, I think he isn't being honest with me. Besides that, everything is good working there. The job fits in perfect with my school schedule, and it pays well.

My biggest concern is: What if he doesn't pay me? Since I get a "paycheck" which is really a personal check from him at the end of every month, what if he just refuses to pay me even though I worked the whole month. (I usually only work one day per week - so 4 days per month)

Would I take him to: (a) small claims court? or (b) the labor board?

Another concern is: What if I'm accused of damaging, or stealing something out of a customer's car? Or, what if he accuses me of damaging any shop equipment? Am I "not liable" ? Or, can he take to small claims court?

Also, there is no timecards or timeclock of any kind. The only evidence that I have that I actually worked there, is the printouts that have my mechanics license number printed on the vehicle inspection reports of every car car that I work on. A time and date stamp is on these reports, as well as the shop name and shop license number. However, these reports only have the time that I finshed working on the each car, not the actual time I was at work.

He said that he doen't use timecards or timesheets.

Sorry to be long-winded. If anybody can shed light on my situation, it's much appreciated.
 
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ecmst12

Senior Member
I would suggest you tell the owner that you don't wish to continue to take the considerable risk of working there if he can't put you on the books as a legit employee and carry the appropriate WC and UC insurance coverages. It's a dangerous job you're doing and it's not worth it to keep putting yourself at risk knowing he won't be able to take responsibility if you DO get hurt. If he won't hire you above board, find another job.
 

aquarius

Junior Member
Looking for another job would be the best thing, I know. But, jobs that will fit around my school schedule are extremely hard to come by - especially in the small town where I live and go to school. I applied for work-study, and I was denied. The school also denied me for all available financial aid - even though I applied on Jan 1st - the first day to apply.
I'm stuck with outside employment and/or student loans.

I'm returning to college to get a business degree, after working for 15 years as an auto mechanic. Eventually, I want to leave the auto repair business behind, and move on to career in the business arena. However, I don't have business/office experience to get a job in that area yet.

99.99% of jobs in auto repair are full time only. I could work in a warehouse or do other minimum wage type work while in school. But, I can make the same amount working one day a week in an auto shop, as I would make working 40 hours per week at a minimum wage job.

That's why I like this job so much. I have been looking for a job like this for a year! I finally found one, and he wants to pay me under the table only! :(
 

tranquility

Senior Member
You could force the issue on the employer, but I guar-un-tee you your tenure from that point forward is quite short. The reference you get will be bad too.

What he is doing is illegal. If you report him it will cost him a lot of money. He won't like you a real whole lot after that. He's the boss.
 

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