Question:

OK, this is the 3rd in this series of questions. As this situation is rather complex I’ve broken it up into 3 parts…

An employee (per diem) was overpaid by the employer for whatever reason, let’s say the accounting dept wasn’t keeping track how many days of work he was really doing. They made up to deduct a certain amount of his salary the next year or two as a way to pay them back slowly.
Close to that amount being finished, they decided it wasn’t fast enough since the employee wasn’t doing enough work, and they threatened to cut off his salary entirely if he didn’t do more work immediately.
The employee did do more work as agreed but they cut off his salary anyway, and even changed his status from W2 as he had been for many years, to 1099 status, and without informing him of either action.
The employee bounced checks written against his paycheck assuming it was directly deposited as usual.

Is the employer chayav to pay for fees etc associated with the bounced checks or since all gramma they are patur?

Is it assur/muttar for the employer to change the status thus causing the employee to pay the full SS tax? I saw in one of the questions someone asked about that, and he was answered it goes by minhag medina etc but the halacha wasn’t so clear. By law it is clear that these employees are regular employees and not independent contractors so why would that not determine the halacha? An employer who breaks this law may receive hefty fines plus even jail time!

And tying this into my other questions, once the employee balanced out the cheshbon by doing a combination of work and receiving compensation via peshara for extra work etc, shouldn’t the employee immediately reinstate both his old salary and his W2 status?

Sorry if these questions are very involved, and thanks for your help!

Answer:

Answer from Horav Y. Fleishman shlit”a.

This is a question which requires beis din since certainly they will have some answers to your claims and one can only answer if he hears both sides.

Tags: 1099 employee

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