Can I Be Sued By A Former Employer?

[judgediatl2]

Ohio

I'm about to settle a dispute with a former employer. He believes I was an independent contractor for five years. I believe I was treated as an employee. We're about to sign a settlement regarding for an unrelated issue dealing with him not paying my final paycheck. In the settlement, the lawyer put verbiage that reads to the extent of ..."both parties agree not to contact any government agencies, and this settles any/all disputes..." etc. I'm sure this was added at the behest of my older employer to try and cut me off, since I told him I was going to do this. If I sign, could he then say I breached the contract by disputing my status with the IRS? Even though I'm just filing paperwork with them to have them review my status and make a judgement? I know they have the power to overrule any contacts or agreements, since they operate under federal law. Just need to know if he can sue me personally after that.

 

[Zigner]

You would be wise to ask your attorney questions about your case as he is in a position to know all of the pertinent details that random strangers on the internet won't know.

 

[Taxing Matters]

Just need to know if he can sue me personally after that.

Yes, he could sue you. Whether he'd win depend on exactly how well that settlement provision is written. The employee/independent contractor determination by the IRS would affect, at the very least, the taxes that the employer must pay. In other words, the employer wants assurance that once this settlement is done, it won't have to pay another penny for this. If the IRS determines you were an employee, the employer would have FICA tax, interest, and perhaps a penalty to pay. Since the purpose of the settlement is likely to settle all issues related to the pay they are giving you under the settlement if it is at all well written your employer may well succeed in winning a claim for breaching the agreement.

 

[bcr229]

Two months ago you said you were going to file the IRS SS-8. Did you do that already?

 

[zddoodah]

If I sign, could he then say I breached the contract by disputing my status with the IRS?

Yes. Your former employer "could say" anything he/she/it thinks is appropriate, but I doubt that's what you intended to ask.

Just need to know if he can sue me personally after that.

Anyone can sue anyone for anything.

To answer what I think are your real questions, one would need to review all of the relevant documentation and understand all of the relevant facts.