Forums
Employee or not?
Legal Forum
Employee or not?
Discuss employment-law issues such as family leave, overtime, disabilities law, harassment, immigration and termination.
An interesting scenario:
A person is to perform work for Company A as a contractor. However, they do not have personal EPLI so Company A wants them to become an employee of their payroll provider,
0
Cat:Topic ForumsForum:ForumId54
Cat:Topic ForumsForum:ForumId54Discussion:DiscussionId36328
Forums » Topic Forums » Legal Forum » Employee or not?
|
Employee or not?
posted at 1/4/2010 4:53 AM EST
|
Posts: 155
First: 8/24/2009 Last: 2/9/2010 |
An interesting scenario:
A person is to perform work for Company A as a contractor. However, they do not have personal EPLI so Company A wants them to become an employee of their payroll provider, Company B. Company B willingly accepts this arrangement, has the person complete an application, performs reference checks, completes a W-4, I-9 and on boards the individual. Further, they offer this person benefits as they would any of their full-time employees. He was paid on a W-2 basis and will receive a W-2 for wages earned and taxes withheld. After 3 months the employee's arrangement ends with Company A and they are terminated from Company B. The individual files for unemployment and is approved. Company A rightfully states the individual was never employed by them. Company B says the individual performed no work for them and therefore should not be granted unemployment benefits from their wages paid. Who should prevail? Why? My neighbor is involved in this very situation so I am curious. I say he was an employee, Company B treated him as an employee and somehow was reimbursed from company A for his services either through direct billing or some promise of future business. Consequently whether Company B likes it or not the FUTA and SUTA they paid for this person is going to be used. What are your thoughts? |
|
|
Employee or not?
posted at 1/4/2010 6:22 AM EST
|
|
Posts: 562
First: 11/12/2009 Last: 9/14/2011 |
Totally agree with hrbth. If this is in Colorado, Employer B can appeal but I'd be willing to eat my shirt sans mustard that any Colorado admin law judge will find in favor of the employee. I don't know if you've ever had to go to a hearing with one of them, but absent a directive from God the Colorado UI judges almost always find in favor of the employee. |
|
|
Employee or not?
posted at 1/4/2010 6:45 AM EST
|
|
Posts: 1771
First: 10/24/2002 Last: 9/14/2011 |
I don't think it's just "finding in favour of the employee" that makes the employer Company B, I think it's also the fact that the employee was on Company B's payroll. Even if the employee insists he was really employed by Company A for UI purposes, I think the ruling would still go to Company B as the employer. |
Forums » Topic Forums » Legal Forum » Employee or not?
