Challenge of Independent Contractor Status

[DuncanHines]

I recently severed sales management ties with a general agency for a major carrier. In the severance I was shorted two + weeks of salary and I met with an attorney to discuss strategies on securing my salary.

The attorney wants to go another route. My management contract classified me as an Independent Contractor through the general agency. After a discussion, the attorney is confident my position doesn't meet the definition of an independent contractor.

As opposed to simply recouping the lost salary, such a finding would return treble damages in addition to social security match and attorneys fees.

My question is, is the forum aware of any challenges to sales manager contracts classified as independent contractors as opposed to employees? If so, can you point me to these cases and the salient points?

I simply want what I feel I earned and I'm not interested in a protracted court case. But after the conversation with the attorney, I'm very curious as to how the general agency gets away with classifying employment as IC's given the characteristics of the position.

Any help is appreciated!

 

[goillini52]

I recently severed sales management ties with a general agency for a major carrier. In the severance I was shorted two + weeks of salary and I met with an attorney to discuss strategies on securing my salary.

The attorney wants to go another route. My management contract classified me as an Independent Contractor through the general agency. After a discussion, the attorney is confident my position doesn't meet the definition of an independent contractor.

As opposed to simply recouping the lost salary, such a finding would return treble damages in addition to social security match and attorneys fees.

My question is, is the forum aware of any challenges to sales manager contracts classified as independent contractors as opposed to employees? If so, can you point me to these cases and the salient points?

I simply want what I feel I earned and I'm not interested in a protracted court case. But after the conversation with the attorney, I'm very curious as to how the general agency gets away with classifying employment as IC's given the characteristics of the position.

Any help is appreciated!

Just the fact that you were paid a salary doesn't sound like an independent contractor. That's a commission based position....you're self-employed.

Also, you said that you severed ties. So you quit and they still gave you severance pay? Is there something missing here?

Would hiring a lawyer for 2 weeks salary make sense? That's a lot of cake, Duncan(my favorite's German Chocolate)!

 

[Tempra]

I've been an employee, a temp, a contractor, a server, a dishwasher, and everything else.

Looking at this from every angle- I see a person who signed some sort of contract ---- agreeing to be in a relationship and accept a certain type of pay.

First- Let me say- I understand how you FEEL. I have felt the same way. Here is what I realized:

I agreed to whatever I agreed to, as an ADULT, who was more than capable to read contracts and make decisions.

I recall my Dad saying, "No one snuck up on you, roped your neck, and drug your tail into that position. Be very careful about anything that YOU agree to. When YOU agree- then YOU perform above 100% so that when you leave- YOU know that you did what YOU were supposed to do."

One more thought- Only YOU know the whole situation, but, when you were working because YOU chose to- Wasn't it nice to know that you could eat, take care of responsibilities, AND know that you could leave any time YOU wanted to?

Last- YOU severed ties. THEY kindly gave you severance. YOU talked to an atty because of....

I wish you the very best in the world and I hope that this note confirms what you seek

(That you should NOT talk to the Atty AND that you should let the company know what you found out so that they can prep for a future attack. You have definitely WET that Atty's whistle for a major lawsuit- even without you)

*Many companies now pay people as CONTRACTORS, incl Large corps. I know the guidelines, like the ATTY, but, they are doing it. AND many people CHOSE to agree with it.

 

[DuncanHines]

Thanks for the self righteous diatribe that failed to even comprehend the question.

 

[goillini52]

Thanks for the self righteous diatribe that failed to even comprehend the question.

You talkin' to me Cake Boy?

 

[Josh]

Independent contractor status is the norm for the industry. I'm sure it has been challenged many times and don't think any carrier or agency has ever changed it. Realistically your cleanest solution would be small claims court.

 

[VolAgent]

First of all, I'm not a lawyer nor do I play one on tv.

The IRS has well established guidelines for what is and is not an independent contractor. More and more companies are being challenged on this and many are losing.

You cannot "agree" to an illegal contract. Nor are you allowed to waive certain rights. I believe independent contractor versus employee is one of those. Otherwise no one would win a lawsuit challenging it. It is not up to you or the business to simply decide if you are an IC or not, you must be so in fact. Any contract that is illegal or requires you to waive an unalienable right is null and void, or at least those provisions are.

Now, whether you are an employee or not, no one on here has enough information to give you an intelligent opinion. It appears the attorney believes you should have been an employee. If so, I would ask if he would accept the case on contingency and if he will indemnify you from any tax liability.

I add the last because I recall a case with timeshare salespeople. They challenged their employer and were declared to be employees. The IRS then reviewed their taxes and disallowed numerous deductions since they were now employees and not sole-proprietors. All ended up with a nice tax bill. The attorney may not agree to indemnifying you against taxes, but if he won't take it on contingency, then he probably doesn't think there really is that much of a case.

 

[walthamny]

VolAgent is correct. May I add you are taking on the giant insurance company lobby to court. Their bottom line depends heavily on this job classification. Even if your lawyer takes you on for contingency and you win, you still won't collect a dime in my opinion. If it is a small person law firm, they won't have the resources to carry through years of appeals. Why would a law firm take on a case on a contingency basis when the actual payment date is 20 years away.

 

[VolAgent]

I just reread the original post. I thought the OP worked for a general agency that represented numerous companies. Now I see he worked for an agency that was tied to one specific carrier. If this was a life insurance company and you were paid directly by the insurance company and your contract was with them, then your attorney is an *** who is working outside his field of expertise.

https://www.irs.gov/businesses/small-businesses-self-employed/statutory-employees

If that is not the case, then I stand by what I said in my previous post and my apologies to the OP's attorney. If the OP had a contract with the agency directly, that may or may not change things.