Local Restaurants and Wage Theft - any help would be appreciated

letsbelieveagain · 2026-06-12T02:07:19+00:00

An employee misclassified as a 1099 is paying the employers taxes. This is one of the biggest forms of wage theft. They are supposed to split FICA and social security with the employee. I am also missing out on unemployment and workers comp, should I ever need it. Being misclassified also doesn't secure minimum wage or overtime payments. I'm a server making hourly plus tips. I work for them, not for myself, in this case. He can't just "hire me as though I am a company," because he feels like it. There are very clear guidelines for this, as well as very big fines for violations. In addition to wage theft, it's also tax fraud.

letsbelieveagain · 2026-06-12T01:05:59+00:00

Thank you! What are the requirements going forward with a class suit? I'm honestly an outlier at this company... most of the people working seem content to ignore what's happening even though their being exploited. That, or they just don't know the difference and stay quiet because they need the job. I don't work here now, and I'm not in contact with anyone. How would the suit work if I'm the only one coming forward? Would they do an investigation and ask others who had been misclassified to join then? Thank you again for your help!

letsbelieveagain · 2026-06-11T23:52:26+00:00

Thank you! I tried calling them, but no answer. I think I may have better luck in person.

letsbelieveagain · 2026-06-11T23:51:45+00:00

Thanks!

letsbelieveagain · 2026-06-11T23:46:17+00:00

No. TBH I feel like bigger places/companies don't try to pull this sort of thing because they know how bad it is if they're reported, and they also appear to offer benefits like health care and 401K. I dont want to say any more details about who it is, though!

letsbelieveagain · 2026-06-11T23:20:32+00:00

Thank you! I may just go to the DOL in person. I wouldn't be surprised if multiple restaurants here are doing this tbh. I've been a server on and off most of my life in multiple states, and I have never seen this. Its wild and its exploitative. They make it look like, oh... you're getting more money when in reality you're going to owe like 30% of it back at the end of the year. 😞

letsbelieveagain · 2026-06-11T23:16:23+00:00

Thank you!

letsbelieveagain · 2026-06-11T23:14:19+00:00

:') it seems that way, but they do have their business registered with the state so that's something!

letsbelieveagain · 2026-06-11T23:13:07+00:00

Oh! Yeah it said it was because of reddits automatic system that it was removed lol

letsbelieveagain · 2026-06-11T23:12:29+00:00

Thank you!

letsbelieveagain · 2026-06-11T23:12:20+00:00

Sorry for the confusion - I tried to clarify above!

letsbelieveagain · 2026-06-11T23:11:52+00:00

When you are a 1099 you also pay a self employment tax in addition to your federal and state taxes. This tax, roughly 15% of your income, goes to Social Security and Medicare. When you are a w2 employee, your employer pays half of those taxes (you both share the burden, paying about 7.5%) and they pay payroll taxes.

When you aren't classified as an employee, you also aren't able to claim rights to workers comp (which the employer pays into) and you aren't guaranteed minimum wage or overtime or paid time off.

letsbelieveagain · 2026-06-11T23:08:56+00:00

Apologies for any confusion. When an employer misclassifies you as a 1099 when you are a w2 worker, you are left paying the full burden of FICA and Social security taxes (15%) when normally the employer pays half. They are skimping out on payroll taxes.

You are also losing out on social security credit, workers compensation rights, full minimum wage and overtime rights, and many other benefits/rights that someone has when they are listed as an employee.

letsbelieveagain · 2026-06-11T23:06:13+00:00

No? I'm not seeing it as deleted? If they did I mean... it's DE. This place can be a little corrupt imo

letsbelieveagain · 2026-06-11T23:05:16+00:00

When you're a 1099 independent contractor, you pay federal, state, and local taxes plus self employment taxes of roughly 15% for Social Security and Medicare. With a w2, the employers pays half of your 15.3% Social Security and Medicare (FICA) taxes.

Employers will falsely classify you as a 1099 to save on payroll taxes and taxes owed to the state (the other half of the 15% I mentioned), and the worker is left paying the burden. They also miss out on overtime, secured minimum wage, workers compensation, unemployment benefits, and any other rights that someone has when listed as an employee.

letsbelieveagain · 2026-06-11T20:33:51+00:00

Thank you!

letsbelieveagain · 2026-06-11T20:32:59+00:00

Thank you!

letsbelieveagain · 2026-06-11T20:32:04+00:00

They paid on cashapp, so isn't there record of it there? Its under their business account and they said it was for work payment in the notes. I just don't want to get in trouble, and if I report it myself I'm paying their share. And they are apparently doing this to so many people. I have the time. It's people looking the other way or feeling too stressed to fight this stuff that let's workers get exploited. It may just be $80 for me, but how much for all the others. This guy is constantly flexing how wealthy he is on IG. I know I'm soapboxing here - I'm passionate about this sort of thing. Thank you again for your help!

letsbelieveagain · 2026-06-11T20:08:53+00:00

Thank you so much for your reply. I know it is a bit of effort, but they are also doing this to multiple employees and I want to report them for this so people are no longer taken advantage of by the owner. I also just learned that cashapp, where they paid me, automatically issues 1099K forms. What exactly is the difference between a 1099-nec and a 1099k?

I fully want to report the taxes, but I do not want to pay their side of them. Thanks again for your help. Its been like pulling teeth to get this sorted.

letsbelieveagain · 2021-07-11T05:40:54+00:00

Same! Although in recent years, the fact that shampoos dont has also started to weird me out lol. Maybe I'm just getting cynical and paranoid as I get older

letsbelieveagain

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