Legal Actions by Employer?

I have a friend who doesn't speak English who signed an agreement entitled "Independent Contractor, Non-Competition and Confidentiality Agreement." She works for a cleaning service and is not at all an independent contractor as she has to abide by hours imposed by her employer, vacations, days off, etc. He pays her $11 per hour. In this agreement he states that she will have to pay taxes on her own because she's an independent contractor. He also demanded a $1,000 deposit in the event while cleaning she would damage something and is holding that money for 80 employees who he states are independent contractors and is earning interest on that money, is that legal? His non-compete agreement states she cannot clean houses (after leaving his company) on a 50 mile radius of his business, but she cannot travel very far finding homes to clean as she now wants to leave and finds herself in a bind. Now he's making her sign additional docs in order for her to get her $1,000 back. Additionally, he told her after she gave notice that she has to work 2 more weeks to train new people otherwise she will forfeit her deposit. Can he do this?? Most of his employees do not even read or speak English.

2 answers  |  asked Feb 19, 2004 6:43 PM [EST]  |  applies to Illinois

Answers (2)

Aaron Maduff
Legal Actions by Employer?

None of these contracts are likely to be enforceable. The non-compete sounds excessive as 50 miles is probably overreaching given the facts here. In addition, she is clearly an employee and she should report to the IRS that she is an employee and not be paying self employment taxes. She never should have given him the money in the first place and it seems that she is owed the money and the interest. If he is doing this to 80 employees, this is likely a class action claim. I would also be interested to know what he did with that $80,000. I somehow doubt that he is keeping it in escrow, but hsa probably spent it. She needs to contact a lawyer.
Aaron Maduff

posted by Aaron Maduff  |  Feb 20, 2004 5:55 PM [EST]
Aaron Maduff
Legal Actions by Employer?

None of these contracts are likely to be enforceable. The non-compete sounds excessive as 50 miles is probably overreaching given the facts here. In addition, she is clearly an employee and she should report to the IRS that she is an employee and not be paying self employment taxes. She never should have given him the money in the first place and it seems that she is owed the money and the interest. If he is doing this to 80 employees, this is likely a class action claim. I would also be interested to know what he did with that $80,000. I somehow doubt that he is keeping it in escrow, but hsa probably spent it. She needs to contact a lawyer.
Aaron Maduff

posted by Aaron Maduff  |  Feb 20, 2004 5:55 PM [EST]

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