California Bans IC's

Other people have pointed out that the loophole is to lease it through their non-California terminal. But seriously, don’t lease on for $1.00 per mile.

 

Please pay attention to the entire context:
"overwhelming number of improperly paid 1099 workers never pay their Fed income and SS taxes"
And it is not a conspiracy theory, ask any accountant or IRS agent. Why do you think the California Supreme court ruled this way? Apparently they hold the same opinion.

 

I've pondered 1099 a few times lately, but it always ends up being Joe Cool down the street with a truck or 2 that want's QUALITY, SAFE drivers with clean records, but will only pay 1099, and wants to dictate every single aspect of your day. I actually had a guy about a week ago that wanted to pay me 1099, but said and I quote "you'll be at my back and call, if I say go, you gotta go, I make all the decisions."

This of course was right after he #####ed and moaned about not being able to find a good, reliable, safe driver. He also had no contract, no application and didn't require a drug test. I promptly, and ever so politely (yea right) declined said job and told he was out of his mind. Those guys you're after, with the clean records, and safe driving history's etc etc, are all working under w2 with bennies, or they own their own truck. You can't have a model that only attracts less than stellar drivers, or those with strikes on their record, then complain after the fact.

Now if someone is offering above average pay, and gives me the freedom to run the truck how I see fit, and pick and choose loads etc, then I have no problem with it. But as a truck owner, if you want to boss folks around and have them do everything you say to a T, and take the loads you like, or go where you want, then you need to ante up and do it the right way, or you'll end up pissing off the wrong "IC" (employee) and he'll have your ### in a sling with the tax man, unless of course you have a contract, but how often does that TRULY happen? Just about every 1099 outfit I've talked to has absolutely ZERO contracts, all it would take is one phone call and then #### hits the fan. I've seen it done more than once around here, and it's never pretty. Seems like far too much of a gamble if not done correctly on the business owners side, but apparently it's working because tons of folks are doing it. At least around here.

 

The way you describe this problem is EXACTLY it - and what I really hope to see a big crackdown on.

The way I understand it, though, is that you cannot contract around the law. So even with a contract, if what's in it is contrary to any state or federal law, it would be null and void anyway. Probably why the shiesters like you described don't even bother!

 

How does this affect the dock worker truckers? Those guys have been on strike because they're basically 1099, and making less than min wage.

 

Classic example of government painting with broad strokes, although we are used to that in CA. No doubt about it there are carriers out there that take advantage of truck drivers. The government should be going after them and them only. I know plenty of carriers who take care of the IC's that work WITH them. Does the CA government expect all their goods to be delivered by hipsters on electric scooters?