- 3 -
6-month period in 1989. One of these individuals was petitioner,
who, it was determined, was owed $1,078.99 in overtime pay.
Because Carolina Acoustical considered petitioner an independent
contractor and not an employee of the company, it did not agree
with the Department of Labor that petitioner was entitled to the
back wages. Carolina Acoustical did not pay petitioner any
additional money. The other three individuals, all of whom were
considered regular employees of the company, were paid back wages
in accord with the Department of Labor's determination.
Following Carolina Acoustical's denial of payment,
petitioner received a letter from the Department of Labor's Wage
and Hour Division in which petitioner was advised that because
Carolina Acoustical, d.b.a. The Tile Shop, had not agreed to pay
petitioner the $1,078.99, he would need to bring a private suit
to recover the money. The letter stated: "we can take no
further action to secure payment of this money to you". The
burden rested with petitioner to collect the back wages.
Petitioner's Form 1099 for taxable year 1989 reported
nonemployee compensation from Carolina Acoustical in the amount
of $11,919.17. Although Carolina Acoustical made deductions from
petitioner's weekly paychecks for items such as workmen's
compensation insurance, gasoline, wage and petty cash advances,
and loan repayments, the Form 1099 indicated that no Federal
income tax had been withheld for 1989. Petitioner's Forms W-2
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011