Hey everyone, thanks for giving me so much support with my last 2 posts about my employer's nephew graduating in 6 months. This is the second time nepotism has played a role in my 20 year career. I was very distraught the first time I was laid off 8 years ago when an old employer's son graduated and took my position. My current situation is almost an exact copy of what happened. I worked very hard to get to where I am and it's absolutely ridiculous that these “employers” keep hiring their own relatives who haven't proven anything.
As you know my now former employer was served with a lawsuit last week. Here is the foundation of the part of my lawsuit that I can share:
I've been working in my field as a Physical Therapist for the past 20 years. The most common practice for employers regarding tax status is to file PT's as employees. Every company that I've worked for has classified me as an employee. My now former “employer” of the past 5 years promised me more pay if they could label me as an independent contractor. Here's why it's bad to be an independent contractor:
- You can be let go easily.
- No benefits. Must buy your own health insurance.
- Must withhold your own FICA taxes. You fund 100% of your Social Security and Medicare taxes.
I was naive and accepted the status of independent contractor. Even though I was offered slightly more pay than I would've been given as an employee, I was actually PAID LESS because my “employer” wasn't covering half of my Social Security and Medicare taxes, there were no benefits, and I had to pay for my own health insurance.
My husband and I applied for a home loan about 3 years ago and it was more difficult to acquire a mortgage as an independent contractor. The bank required us to provide more documents compared to what an employee would be required to give and we almost didn't qualify for a mortgage. If I was classified as an employee, it would've been easier. Keep in mind that as an independent contractor you are not an “employee”, you are a “contractor” and will receive tax documents labeled as NEC, or Non Employee Compensation.
Lawsuit details I can share: I was misclassified as an independent contractor according to the FLSA (Fair Labor Standards Act). I am an employee because:
- I was using the company's tools and equipment.
- They set my schedule.
- They told me how to complete some of my work.
My lawyer helped me file the complaint with the Department of Labor. He told me that the DOL is backed up right now so we've started the process against my former employer. This could potentially bankrupt the company because many other people I worked with were misclassified and will be receiving back pay and interest. There's a statute of limitations of 3 years so I will be only receiving 3 years of compensation. My former employer was also served with other issues that I cannot share here.
I appreciate your support and will keep you all updated (with the things that I can share) throughout the process.