Agent Leaves and Now Files for Unemployment

[0b1kanobee]

I would call this guy up on the phone and tell him you spoke with your attorney and he is sending you papers to file with the state. Tell him your attorney said that he hopes this guy is not a friend of yours because filing a false claim caries with it a fine and up to 5 years imprisonment. Tell him you told your attorney to hold off sending papers as till you talk to him and give him an opportunity to withdraw his claim.

You can also say you talked to the state instead of the attorney if you don't think he'll buy that.

YOU NEED TO CALL HIS BLUFF. Guys like this are just little weasels and if you scare them with fines and imprisonment they will drop and run.

 

[Josh]

Get an attorney. He wins the unemployment claim, next claim is with the IRS and SS that you didn't withhold taxes for them. He'll use the state decision against you.

You guys and you're "get an attorney" knee-jerk reaction. You're making a big deal out of nothing. xrac hit the nail on the head.

"He voluntarily left my sales organization where he was working as an independent contractor". That is the end of it.

 

[xrac]

Get an attorney. He wins the unemployment claim, next claim is with the IRS and SS that you didn't withhold taxes for them. He'll use the state decision against you.

I have dealt with an represented myself in about five unemployment hearings here in Indiana and I have never lost. I don't think he needs an attorney. I think he just needs to report the facts to the state.

Your can't collect unemployment if you are a 1099 and if your volunatrily quit.

 

[Josh]

All I know is once the paperwork starts flying, the labor board is the one that determines if they were or not were not an employee. You state your case and they state theirs.

I wish I could find the forms they sent me. It had like 10 checkboxes about the entire processs; training, hours, pay, etc...If any of the boxes were checked "yes" (which meant it indicated they were likely an employee) I had to write more about it.

This is something at the state level though and as a neighbor, your state has some pretty weird laws and regulations. There are probably only a handful of states that are similar to yours in this situation, most everyone else is going to say "Oh, he was an independent contractor? That's the end of that" and move on.

 

[Crabcake Johnny]

I didn't need an attorney. I felt it was open and shut - they worked from their own home on commission. And as it turns out, it was indeed open and shut - they got denied unemployment benefits. They also chose to quit and after they lost their case I got a lovely profanity laden phone call about how I was a con man and scam artist because when I "hired" them I didn't make them aware that they wouldn't be eligible for unemployment. Fun times.

We only say things like "get an attorney" or "contact an attorney" because I don't want any possible liability if someone chooses to follow my advice and doesn't seek a legal opinion first.

 

[VolAgent]

Well, considering I have seen Tennessee handle an unemployment case....

And they went pretty far trying to rule in the employee's favor. So I stand by my advice. The employee was clearly fired for cause, but they held a hearing and wanted a lot of documentation before letting it go.

Any good attorney is going to charge you for a 30 minute consultation and tell you if you need them or not. Depending on the rate, $50 or $100 can buy you a lot of piece of mind.

 

[Crabcake Johnny]

Vol...that was my experience. The paperwork I had to fill out had this distinct tone:

"Please fill out below how you conned this person into a 1099 position when you know they were an employee."

You are guilty when someone files a claim and must prove your innocence.

If that person had worked from my office I'm not sure if I would have filled out the paperwork on my own.

 

[VolAgent]

Vol...that was my experience. The paperwork I had to fill out had this distinct tone:

"Please fill out below how you conned this person into a 1099 position when you know they were an employee."

You are guilty when someone files a claim and must prove your innocence.

If that person had worked from my office I'm not sure if I would have filled out the paperwork on my own.

Yep.

The irony in the situation I saw was that they later got hammered on the mod rating. They fought hard to save this one, then had massive layoffs less than a year later.

 

[Crabcake Johnny]

You're not on firm ground if you make it mandatory that someone operates out of your office yet is paid as a contractor.

1099 contractors do what they want, when they want. I'm a contractor for Aetna. I do not have to attend any of their training, show up anywhere or do anything.

They can determine "work output" but that's about it.

 

[rousemark]

and tell them he was part time help.....

Not in TN.. You have withhold on part time help.. You have to show that he was an independent contractor which means you don't set their hour, you don't directly supervise their work, you don't furnish their personal tools, uniforms, etc.