Cash, Half Cash, 1099 and Independent Contractor Workers

Workers in all kinds of occupations (food service, labor, manufacturing, etc.) are sometimes paid all or part of their wages in cash. Workers are also sometimes incorrectly labeled “independent contractors” by the employer and receive Form 1099 instead of a Form W-2, even though the workers are in reality employees.

Employers who pay in cash often do not pay their employees the extra overtime premium wages owed (time-and-a-half or double time) for the overtime work. Cash-paying employers also often owe their employees penalties for not including the time worked for cash in written or electronic paystubs which all employees must receive every pay period. California law requires employers to provide this information to employees, to help them check so they can able to make sure they were paid correctly.

Workers paid as “Independent Contractors” either in cash or by check, are sometimes misclassified as independent contractors and are actually employees who have the right to protections given other California employees such as overtime pay, duty-free and timely meal breaks, paid rest breaks, vehicle expense reimbursement, etc. Affected employees may be owed one hour of pay under Labor Code sections 226.7 and 512, and the applicable Wage Orders, for each day a legally compliant meal or rest break is not provided.

Milhaupt and Cohen has recovered significant amounts for many such employees as well.  

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Milhaupt & Cohen
816 Camarillo Springs Rd., STE F
Camarillo, CA 93012
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