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MenuIf i an running a labor service company and i want to do employees on 1099. Work comp still cover?
If i an running a labor service company and i want to do 1099 for employees. If i have a work comp policy in place are they still covered or do they need to be on a w4 / i9. California based
Answers
Likely you best rethink this.
You've already used the work "employees", so you've already proved your workers aren't 1099 contractors.
The rules a person must meet to be a 1099 contractor.
1) They have no supervision.
2) They have no set hours.
For example, I have a 1099 contractor who runs one of my businesses.
His direction is "get all the orders out as fast as you can."
He has no set hours.
He has no set workplace. Sometimes he works from his home, while he travels, sometimes in the business office.
This is a true contractor.
If you meet these criteria you're good.
If not, you best search for what happened to Microsoft when they paid a bunch of employees on 1099 for years.
When you read this suit, you'll be inspired to avoid their mistake.
All California employers must provide workers’ compensation benefits to their employees under California Labor Code Section 3700. If a business employs one or more employees, then it must satisfy the requirement of the law.
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