Archive for the ‘Employment law’ Category

How long does an employee have to file a wage claim?

An employee has 180 days to file a wage claim with the Commission. (Texas Labor Code Sec. 61.051). If there is an employment contract in place, there may be additional causes of action falling under the two and four year statutes of limitation.


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An employee owes an employer money. May an employer withhold wages from an employee without a written contract?

Typically, no. Labor Code Sec. 61.018. states:

“An employer may not withhold or divert any part of an employee’s wages unless the employer:

(1) is ordered to do so by a court of competent jurisdiction;
(2) is authorized to do so by state or federal law; or
(3) has written authorization from the employee to deduct part of the wages for a lawful purpose.”

Typical exceptions to this rule are contracts between employer/employee allowing for the deduction of expenses, court ordered child support obligations or court ordered restitution.


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What is a “work for hire”?

A “work for hire” (also known as a “work made for hire”) is doctrine of intellectual property law governing ownership of material. The premise is that if a person or company hires another to create something under a work for hire arrangement, the person who hired the creator is the owner of the work. For example, let’s suppose Company A hires Joe Programmer to write a piece of software under a work for hire arrangement. The end result is that Company A owns the software, Joe does not.


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What is sexual harassment?

Sexual harassment may involve different things. The two most common types of sexual harassment cases involve quid pro quo (exchanging a sexual favor for employment perks) and hostile working environment.


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I’m still confused about this independent contractor vs. employee determination. Can I ask the IRS for a determination?

Yes! The IRS has  Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding


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Independent Contractors versus Employees in Texas

The IRS uses three main criteria when determining whether or not someone is an employee or independent contractor.

From the IRS.gov website:
Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?

Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)

Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?


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Independent Contractors versus Employees in Texas

No, there is no “bright line” test determine whether or not a person is an employee or an independent contractor. The IRS will look at the entire relationship between the parties.


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Independent Contractors versus Employees in Texas

No. From the perspective of the IRS, the IRS doesn’t care if you label a person an employee, independent contractor or anything else. The IRS will look at the entire relationship between the parties. If you incorrectly label someone an independent contractor when they are in fact an employee, you could face serious liability. The IRS has its own criteria for determining a person’s status as employee vs. independent contractor.


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Independent Contractors versus Employees in Texas

This is a common question. Many small business owners want help, but don’t want the added hassle (or taxes) of hiring employees. Many business owners believe that they can just simply classify someone as an independent contractor by contract and be done with it. The problem is that the IRS may not agree with your assessment as to whether a person is an employee or independent contractor (even if your agreement specifically states such.) The IRS has its own criteria for determining a person’s status. The contract is only a factor, but it is not determinative. The IRS will look at the entire relationship. Further, if you incorrectly classify someone as an independent contractor, you can face some serious fines from the IRS.


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