• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Please Help.

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

AndreaRickards

Junior Member
Typing this from Ohio. I own a company. A same day transportation company. I've owned it for 29 years. This is the 3rd litigation lawsuit I have had brough against me by my independent contractors. The claim most recently being made by a former is that I am misclassifying my employees. I don't wish to go through anymore litigation. Is it illegal to send her a check for the damages without going through the court? Or is this illegal and considered bribery? If I do send it and she cashes it, will it affect my case? My counsel is on vacation at the moment. I was afraid to speak with any lawyers I knew personally as I feared they may judge my ability to run my business. Thanks in advance
 


FlyingRon

Senior Member
If you are conceding that you are breaking the law with the miscalculation, you can ceratainly try to settle out of court. You should get them to agree to waive further claim (and to dismiss the court action), in exchange for the payment.

Note, that if you indeed misclassified employees, you have bigger fish to fry. You are now in trouble with the IRS and you are going to be required to submit a check to them as well for the employers share of FICA that you didn't pay (and most likely a penalty and interest for failing to do so timely).
 

LdiJ

Senior Member
If you are conceding that you are breaking the law with the miscalculation, you can ceratainly try to settle out of court. You should get them to agree to waive further claim (and to dismiss the court action), in exchange for the payment.

Note, that if you indeed misclassified employees, you have bigger fish to fry. You are now in trouble with the IRS and you are going to be required to submit a check to them as well for the employers share of FICA that you didn't pay (and most likely a penalty and interest for failing to do so timely).
And, once you admit that you misclassified one employee as an independent contractor, then you are opening yourself up to liability for all of the others as well. You really cannot afford to settle this case without the advice of an attorney well versed in labor law.
 

Zigner

Senior Member, Non-Attorney
And, once you admit that you misclassified one employee as an independent contractor, then you are opening yourself up to liability for all of the others as well.
A settlement can easily be worded so that there is no admission of anything. A settlement is oftentimes used as a way to avoid the costs of litigation.

You really cannot afford to settle this case without the advice of an attorney well versed in labor law.
I agree wholeheartedly with this.
 

LdiJ

Senior Member
A settlement can easily be worded so that there is no admission of anything. A settlement is oftentimes used as a way to avoid the costs of litigation.

I agree wholeheartedly with this.
Still, even without admitting liability a settlement could be dangerous without the advice of an attorney.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top