Q: Can a company, like a cleaning company, that hires you to work as a 1099 contractor compel you to start an LLC?
After not paying a dime for 4 months worth of work completed and not telling us why, we were told that they would not pay us until we started an LLC
A:
You are entitled to compensation for the hours worked regardless of whether you agree to open an LLC. Your employer is trying to misclassify you to avoid paying you employee benefits. Make sure you keep all correspondence about this subject in writing between you and your employer.
I suggest you consult an employment law attorney who will further examine your situation and explain your options. Most employment law attorneys in California offer free of charge initial consultations and thereafter may take your case on a contingency basis, meaning you do not have to pay attorney’s fees unless and until there is a positive outcome for you. They may also advance either all or partial costs of litigation.
You can look either on this site in the Find a Lawyer section or go to California Employment Lawyers Association (www.cela.org), an organization whose members are committed to representing employees’ rights. Best of luck.
Sincerely,
Maya L. Serkova
A: One obviously can't be compelled to start an LLC. However, AB5 has made companies careful regarding who or what they pay for contract work. The business-to-business exception or exemption is probably what many companies seek to avail themselves by contracting only with LLCs. Of course, more information is needed. Speak with a local attorney about your specific situation. [I litigate cases. Anything posted here must not be construed as legal advice, nor as grounds for forming an attorney-client relationship. You should seek an attorney for formal legal advice and representation.]
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
