[throwaway10283]

Yep. I think it's a combination of him showing his potential investors that they really handed it to this asshole kid who screwed up their company (obviously, the CEO wasn't at fault at all), and an attempt to just screw with me as much as possible.

I already have contacted a bankruptcy attorney, and apparently you can file before there's a judgment against you. So, thanks! That's definitely reaffirming and on my radar :)

[dhimes]

Talk to a lawyer before pursuing this, but it may make you smile a bit in the midst of your worry so I'll post it here.

You mentioned that you are living off of a student's budget. Does that mean you are a student? If so, did he hire you on a contractual basis? Meaning, without benefits, etc.? If so, you may have a play that will not only get you some $ but make him look absolutely incompetent in front of his investors. It's actually pretty easy to show (in some states anyway) that you should have been compensated as a full-time employee. MA, for instance, is very harsh on owners who hire 'contractors' who do the work that would normally be done by employees. Even if you have a written agreement to the contrary, the court could decide that you were in fact an employee and award you triple damages.

My friend just lost a case like this. It absolutely stunned me (and her, for that matter). She fired an incompetent contractor, and the contractor turned around and sued. And won.

It sent chills up my spine, but if it fits your case then it could work for you as a threat to embarrass him if not even for the money.

But, ffs, talk to a good lawyer!

[HarryHirsch]

> MA, for instance, is very harsh on owners who hire 'contractors' who do the work that would normally be done by employees. Even if you have a written agreement to the contrary, the court could decide that you were in fact an employee and award you triple damages.

This is actually a good thing. See, there are cases like "independent" delivery drivers who work exclusively and full-time for one company and as contractors are denied benefits.

If these people are on sufficiently low income they can apply for Medicaid in case of illness, in which case the cost is borne by the taxpayer. I feel the cost should go to the company owner. You cannot make the argument that society should pay for the fact that such company offers lower prices on their product or that the owner should have a higher income.

[dhimes]

I agree that abuse is rampant and bad, and that without laws many business owners will be abusive. I just think that MA argues a little too strongly for the contractor. And it is definitely something he or she will worry about, which was my point to OP.

In the case I mentioned, being a contractor was never an issue or a problem for the person. But when she was let go, she got pissed off and used her leverage for revenge.

[HarryHirsch]

My point was that people shouldn't be shocked, shocked when they get busted for breaking the law.

Of course the fellow wouldn't complain while he was employed. People who live in illegal apartments tend not to complain either, until something goes seriously wrong.

[dhimes]

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.

[jt2190]

  > 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...

[nlh]

Do yourself a favor -- don't go down the bankruptcy path too soon. Speak to a good lawyer first and try to get things resolved. Bankruptcy has long-lasting consequences, stays with you in some form for the rest of your life and should really be avoided unless absolutely necessary.

Since you're a student (didn't know your age when I wrote my other comment), it's even more likely that they have no intention of actually following through with the lawsuit, so rest (slightly) easier knowing this will likely cost them more $$ than it will cost you.

[RougeFemme]

If you're a student and your parent's/parents' dependent and she/he/they have a pre-paid legal plan, you may be able to at least get one of lawyers in the plan to write a letter responding to the lawsuit. As others have suggested, that may be enough to stop things or at least buy some time.