INDEPENDENT CONTRACTOR VIOLATION
Published on Saturday, December 24, 2022

IBEW Local 278 is aware of investigations across the country that have uncovered numerous examples of construction contractors improperly classifying employees as “1099” Independent Contractors. For the employee, including many electricians, this illegal practice often leads to lower wages and little to no benefits, not to mention setting them up for problems, which may go well beyond dealing with the Internal Revenue Service.

Misclassifying employees also creates an unfair advantage for the law-violating contractor.

For tax purposes, an independent contractor is often listed as a “1099 employee.” This means an individual may work for a company and receive a paycheck, but the company does not have to withhold various taxes, contribute to Social Security or Medicare or provide any health or retirement benefits. In some states, premiums for workers’ compensation or unemployment insurance are also not required for anyone listed as a 1099 employee.

This means the worker is responsible for paying these fees and taxes, not to mention performing their own withholding through quarterly payments to the IRS. In some instances, the employee is not even aware of the situation.

To determine the difference between an employee and an independent contractor, please click here.

The members of IBEW 278, are not Independent Contractors. All our licensed electricians are covered by a Collective Bargaining Agreement.