Ask HN: Have you ever been sued by your startup?

Re:Ask HN: Have you ever been sued by your startup? by dhimes on Monday March 25, 2013 @04:15PM (#5439440)

My point is that they aren't breaking the law- until a jury decides they are. They've entered into a consensual agreement for fee-for-work as contractor. Both agree. Both understand. Contractor has certain freedoms (work mostly from home on own schedule, etc.) and certain obligations (pay own taxes, etc).

But a jury decides that the agreement isn't right and that someone was actually an employee. And awards triple damages.

Yes, this can be abused by employers. But even when it's not- it can still give employers heartburn. Anyway, in OP's case it's moot because he was W-9.

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Re:Ask HN: Have you ever been sued by your startup? by jt2190 on Monday March 25, 2013 @07:11PM (#5440325)

  > They've entered into a consensual agreement for 
  > fee-for-work as contractor.

It simply doesn't work like that. A worker isn't a contractor just because the employer and the worker have "agreed"... Both parties must be able to demonstrate that the worker is indeed operating like a contractor. See the IRS rules on this, for example: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Em...

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Re:Ask HN: Have you ever been sued by your startup? by dhimes on Tuesday March 26, 2013 @08:12AM (#5442654)

I know. I fully understand this. But certain jurisdictions rule differently. And in MA, it is a serious threat. In OP's case, again, it is irrelevant because he was a w-2 employee.

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