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Steven Mitchell
Sack

The Employee’s Lawyer®

Welcome to The Law Offices of Steven Mitchell Sack

Enforcing the workplace rights of thousands of employees, executives and sales reps for more than 44 years.

steven mitchell sack

Think You’re an Employee?…Think Again

When you’re working for a company or employer of some kind, it would only make sense to think of yourself as an employee wouldn’t it? Ah, if only it was that simple. However, various positions of employment are considered “Independent Contractors” for various reasons under the law and the differences between the two titles are vast.

It is vital to get informed and know your rights as an Employee or Independent Contractor to ensure your legal rights are protected and you receive the benefits you deserve. Here’s a section of my book “The Employee Rights Handbook” that deals with just that.

Employee Versus Independent Contractor Status

There is a growing effort by federal and state agencies to investigate and audit companies who misclassify employees and annually cheat the government out of hundreds of millions of dollars of unpaid taxes and wages. Independent contractors are less costly than salaried workers because an employer is not responsible to pay for or withhold their payroll taxes, fund the employer-matching portion of the Federal Insurance Contributions Act (FICA), or provide benefits. Workers classified as employees have more rights under federal and state labor laws, such as being protected against discrimination, minimum wage and overtime pay abuses, workers’ compensation coverage, actions from labor organizations seeking to enforce safety, and pension and employee benefit considerations, among other considerations. As an example, employers are generally liable for the negligent acts of their employers but not for their independent contractor workers.

A widely reported case in this area involved a ruling against Microsoft. A group of freelance programmers who were paid higher hourly rates than comparable employees commenced a lawsuit demanding various savings and stock-option benefits. After the U.S. Court of Appeals for the 9th Circuit ruled that Microsoft exercised sufficient control over these workers, they were deemed to be employees and entitled to such benefits.

The IRS generally opposes independent status because companies who retain independents don’t have to withhold income or employment taxes. Since a contractor can manipulate earnings by claiming all business-related expenses on Schedule C (where expenses offset gross business income), the IRS believes that many dollars of compensation go unreported. Additionally, if you are an independent contractor who is injured while working, you are not bound to collecting workers’ compensation damages for your injuries. This is advantageous, since the awards are typically larger for claimants who commence private lawsuits for injuries than for those who receive workers’ compensation benefits.

As an independent contractor, however, you are not permitted to file for unemployment benefits after a job has ended or you are terminated unless it is determined at the unemployment hearing that you are legally an employee. You probably cannot avail yourself of employer-provided disability and health insurance plans and may have to establish your own retirement and pension plans. Since you will receive an IRS Form 1099 and not a W-2 form with deductions withheld, you are responsible to pay all applicable Social Security, unemployment insurance, state and local income taxes, and workers’ compensation insurance benefits for any people you employ. Under the laws of many states, you will probably have a more difficult time asserting discrimination claims. Furthermore, you cannot assert claims for overtime, since wage and hour laws apply only to employees.

No precise legal definition of an independent contractor exists, and each state has its own laws to determine whether an individual is an employee or an independent contractor. When the courts attempt to determine the difference, they analyze the facts of each particular case.

Significant factors courts look for when making this distinction are:

1. The company’s right of control over the worker.

2. Whether the individual works exclusively for the company or is permitted to work for others at the same time.

3. Whether the parties have a written agreement that defines the status of the worker and states she is not considered an employee for the purposes of the Federal Contributions Act and the Federal Unemployment Tax Act and that the individual must pay all self-employment and federal income tax.

4. Whether the individual controls her own work schedule and the number of working hours.

5. Whether the individual operates from her own place of business (or pays rent if an office is provided) and supplies her own stationery and business cards not at the company’s expense.

Typically, employees undertake to achieve an agreed result and to accept an employer’s directions as to the manner in which the result is accomplished, while independent contractors agree to achieve a certain result but are not subject to the orders of the employer as to the means that were used. In each case, the court looks at the specific facts in making its determination. For instructive purposes, the company’s

right of control is best explained by the use of examples.

Courts have found workers to be employees if companies:

  • Have the right to supervise details of the operation
  • Require salespeople to collect accounts on its behalf
  • Provide workers with an office, company equipment, company car, and/or reimbursement for some or all expenses
  • Require workers to call on particular customers
  • Deduct income and FICA taxes from their wages or salary
  • Provide workers with insurance and workers’ compensation benefits
  • Restrict their ability to work for other companies or jobs and require full-time efforts

This list is not meant to be all-inclusive, but rather to help you determine what classification you fall under. Since the law is quite unsettled, the IRS follows a summary of rules used to determine proper status. According to the IRS, an employer-employee relationship for tax purposes exists when the person for whom the services are performed has the right to control and direct the individual who performs the services, not only as to the result to be accomplished by the work but also as to the details and means by which the result is accomplished. In this connection it is not necessary that the employer actually direct or control the manner in which services are performed; it is sufficient if the firm had the right to do so. The designation or description of the relationship of the parties in a written agreement other than that of an employer and employee is immaterial if such a relationship exists, and the IRS will disregard other designations (such as being called a partner, agent, consultant, or independent contractor) in the agreement.

STRATEGY: The odds of finding employee status become lower when you form a corporation and receive compensation from your corporation. The IRS is also impressed when you or your corporation works for several companies and not just one.

When an initial determination is made by the IRS finding employee status, costly damages, penalties, and interest can ensue to you and the company hiring you. In misclassification cases the company will be required to pay all back withholding taxes plus interest, even if the misclassified independent contractors have already paid their taxes. The IRS and other agencies might also levy huge fines and press criminal charges against company officials.

Independent contractors are responsible to provide their own workers’ compensation insurance under most state worker compensation laws. However, a company is obligated to provide workers’ compensation insurance on the independent contractor’s behalf (and employees of a subcontractor) when the independent contractor fails to provide his own.

Speak to a competent lawyer or accountant immediately upon receiving an initial IRS or state taxing authority notice of determination or request for facts. Competent tax advice and guidance are crucial in this area.

If you are not a statutory or common law employee (which includes leased employees, part-time workers, and temporaries), you are legally considered to be an independent contractor. This is so even if you call yourself a consultant or subcontractor. As an independent contractor, it is crucial to discuss all the terms and conditions of your working relationship with a company or individual. This must be done before commencing work, no matter what your trade or profession. All key terms of the relationship, including the services to be rendered, payment, stages of payment, whether expenses are to be reimbursed (and to what extent), and the length (also known as the term) of the arrangement, should be understood and agreed upon to reduce misunderstandings.

For a full depth analysis on this topic and many more, visit http://legalstrategiespublishing.com/ to purchase “The Employee Rights Handbook” today!

    If you have experienced any of the below, fill out the form to the right to set up your FREE PHONE CONSULTATION:























    What’s Happening at The Law Offices of Steven Mitchell Sack

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    Our Reviews and Client Feedback

    Gabriela Miller
    Gabriela Miller
    1730063248
    Highly professional and a wonderful attorney. Thank you.
    Chris MacMurray
    Chris MacMurray
    1724781629
    Steve was amazing to work with. He is always available and follows up on email or phone calls immediately The process was fast and painless, and he helped me understand a number of things that I did not. I would recommend him highly, and he will be my sole source for employment law going forward. Thank You Steve!
    Sandy James
    Sandy James
    1724127215
    Steven was reliable, straightforward, empathetic, honest, dependable and pushed for what I asked for in my agreement with my employer. I thought his prices were reasonable. I felt like I was in good hands throughout a terrible work situation. Highly recommend his services!
    Abraham Truzman
    Abraham Truzman
    1723166991
    My experience with Steven Sack was similar to those that many others have had with him before. Honest, caring, communicative, and exceedingly knowledgeable. My legal troubles caused me a few sleepless nights and he was a Godsend in resolving my legal matter. He was my advocate through and through. If you are dealing with any issues regarding employment law, go to Steven!
    Dani Rodriguez
    Dani Rodriguez
    1722986542
    Amazing lawyer, an even better person. He is straight and to the point, looking for the best for his clients. If you don't hire him, you're making a mistake
    O M
    O M
    1719409663
    Steven and Andrew Sack are incredible people. They went above and beyond what anyone would expect to get an equitable solution on my behalf. I cannot recommend them more highly. The result in my case would not have been possible without their work. Andrew was responsive, clear, and immensely helpful. Also, Steven's book is a great reference for general employment questions.
    Casey Drummond
    Casey Drummond
    1719359618
    As someone who is an avid fan of the TV show Suits, Steven Sack is nothing short of a real life Harvey Spector. He is honest, communicative, does exactly what he says he is going to do and keeps you in the loop every step of the way. I cannot recommend Steven highly enough and will certainly use him again in the future. Thank you Steven!
    You couldn't be in better hands than Steven Sack's for any employment issue. He is simply the best at what he does.As forthright and caring an individual as you will ever meet.A mensch.
    Dave Capodanno
    Dave Capodanno
    1715956144
    Steven Mitchell Sack is the best at what he does and comes with a lifetime of experience in his area of expertise in employment related legal issues. Extremely professional and to the point, he has the ability to cut to the chase and avoid delays and red tape. His goal is to seek justice and make things correct for his client. Steven's mission is to help people that come to him. We highly recommend Steven M. Sack. Dave & Ann Marie C.
    I’ve hired Steven a few times and he was so helpful! He is very honest, professional and personable, and his billing was very reasonable. In a pinch, he is who I call for help.
    Jaime Reyes
    Jaime Reyes
    1713877417
    I had the pleasure of working with Steven. He was able to find an amicable solution to my employment issues. He called me on a regular basis to keep me informed on the progress of my case. He was able to settle my case quickly.
    Robert
    Robert
    1711669190
    Steven is an incredible professional! When you call him he, alone, picks up the phone. He is honest, prompt, courteous and extremely attentive to his clients. He restored my faith that the customer-service ethic is alive and well in the legal profession.I cannot say enough about this fine gentleman; look no further!I am proud to call him my attorney.
    Yeoni Heggem
    Yeoni Heggem
    1710248522
    I appreciate his legal counsel. I went through series of abuse at work but it was not something that I could prove easily. I wish I knew him while I was getting abused but I came to find him after I got laid off. Due to the size of the company being one of the largest corp and have extensive legal team and having let go of many other people with me didn't help my case much. I needed to speak to someone who has realistic approaches and can tell me what I can expect. If you speak on the outcome wise, it wasn't any different before and after I paid $300 so some people might see it as waste of $300. For me, Steven's consultancy made me move on and helped me let go of things that I went through. He encouraged me in a very realistic way and I think I will sign my release and move on as company gave me 2 months to find a job plus more severance. I know most people would have moved on but I wanted answer. Steven's answer was very realistic and in fact was sad but that's not his problem to resolve. American corporations can bully an individual and find a way to make it legal. Steven felt bad about what happened but he gave me what the outcome would be like and essentially said it isn't illegal to bully someone and proving it is due to my autism is not something that can be proved easily. I thank Steven for being my therapist on legal part and I believe that was worth $300 for me. Thank you.
    Latasha Forbes
    Latasha Forbes
    1709836467
    I have worked with Mr Sack twice now and he is fantastic. He is quick to respond, extremely knowledgeable and beyond helpful. He is honest in his opinion and clear in his methods. I appreciate him so much and I would recommend him to anyone in need of clear, sound advice and help.
    Doug Geddes
    Doug Geddes
    1709750851
    Steven did an excellent job handling my case. He is very responsive, intelligent and knowledgably. The results were great, and I'm very grateful to have had him representing me.
    Steven Sack is the best attorney I have ever met. As a non resident alien in New York he provided clear advice and was always available for a discussion or strategic decision. My case was complex and had little changes, but he dit it! Without him I would have been completely lost. Never go without him. would be advice. He is the best of the best.
    Working with Mr Steven Sack was very positive. He set clear expections, was punctual and negotiated a positive outcome on my behalf. Thank you
    Ariel Weiss
    Ariel Weiss
    1703427720
    Steven was super easy to work with and got the job done a lot faster than I expected. Was a really painless process and I am super happy with my experience! I highly recommend using him!
    Marlene Romero
    Marlene Romero
    1703196533
    I am grateful that I was referred to Steven Sack by another law firm. I felt my options were limited and that perhaps a satisfactory resolution was impossible. Then I met Steven Sack. Professional, no-nonsense, and extremely empathetic is what I found within 5 minutes of speaking with Steven. His guidance and support in navigating the process was invaluable. His expertise led to a quick and positive outcome - a severance much more than I had imagined. I am grateful for his hard work and dedication to my case. I highly recommend Steven Sack without reservation.
    Omar F
    Omar F
    1702055241
    Steven Sack is an extraordinary attorney and I am fortunate that I was referred to him by another firm. I can't thank him enough for the help he provided during a very difficult time.During my first conversation with Steven I immediately felt protected. He was empathetic, understood what I was going through, listened to me and asked great questions.After gathering all of my information, he immediately jumped into action and handled everything. Throughout the process, he gave me great advice, was incredibly responsive, provided crystal clear information, always kept me updated, and was super transparent about every single detail throughout the entire process.The result was better than I ever imagined it could be and I credit Mr. Sack's expertise and negotiating acumen with making it happen. Thank you, Mr. Sack!
    Katrina Palen
    Katrina Palen
    1696942561
    I highly recommend Steven Sack. You'll get efficiency, experience, and respect.I was a part of a structured layoff and was referred to Steven Sack. I'm really glad I was able to have him look over my contract and termination and give me the peace of mind that I was treated fairly and walked away with the best possible terms. When you're suddenly let go, emotions and stress can run hotter than normal, but Steven is a sensible, realistic, and pragmatic person who respects your situation and helps you understand what's going on. He brings his experience so that you can breathe a little easier in letting him handle the negotiations and what would be stressful conversations to handle yourself. He's communicative and will let you know the status as things progress, so you're not worrying about updates. Again, I highly recommend you reach out no matter your situation as the consultation process is very easy and Steven is very responsive.
    Cody Ciura
    Cody Ciura
    1691612617
    Steven was fantastic in all areas of his representation. He really cares about his clients. Steven is a great communicator and works hard to obtain the best result.
    Andrew Chung
    Andrew Chung
    1690817138
    Steven was very knowledgeable and personable. I was referred through a good friend, and I was impressed immediately. Steven helped me through my process and I was very pleased with the final result. I will continue to ask for his counsel through my career, thank you!
    Woody Curry
    Woody Curry
    1689257235
    From our first interaction I knew that Mr. Sack was the right lawyer for me. He is a man of strong character who truly believes in fighting for what is right. He has a deep passion for the law & his clients. Mr. Sack doesn’t just talk a good game he stands behinds his convictions. He is direct & to the point when speaking with you. He said from the start that he would be honest & straight forward with me & he was, even when I did not necessarily want to hear the truth. He is compassionate & truly listens to his clients, but he will always tell them the hard truths about their case.Mr. Sacks years of experience speak for itself. Within a matter of several phone calls & emails to myself, my employer & their council he negotiated for me a much-improved severance package. A package that reflected my years of dedicated service, & the value I brought to my former employer. I was as a 23-year veteran employee with an impeccable personnel file & a strong reputation both inside the company & within my field.Bottom line, Mr. Sack is a seasoned professional with a direct, no-nonsense, take-charge approach towards working with his clients & negotiating for them. I would highly recommend him & would not hesitate to use his services again.-Christine TenEyck
    I had the privilege of working with Steven Sack as my employment attorney, and it is with utmost pleasure and gratitude that I write this review. Mr. Sack is a true champion who fought diligently on my behalf, ensuring that my rights were protected and interests were served. His unwavering dedication, exceptional responsiveness, and unparalleled professionalism set him apart as a remarkable advocate.From the moment I reached out to Steven Sack, I was impressed by his promptness in addressing my concerns. His responsiveness was nothing short of exceptional. He consistently made himself available to discuss my case, answer my questions, and provide me with the guidance I needed. I always felt valued as a client, as he took the time to listen attentively to my story and understand the intricate details of my situation.Throughout the entire legal process, Mr. Sack exhibited the highest level of professionalism. He approached my case with meticulous attention to detail, leaving no stone unturned. His expertise and experience in employment law were evident as he skillfully navigated the complexities of my situation. With each interaction, he displayed a deep understanding of the law and an ability to explain complex legal concepts in a clear and concise manner, ensuring that I was well-informed and able to make sound decisions.What truly sets Steven Sack apart is his unwavering commitment to his clients' best interests. He consistently prioritized my well-being and fought vigorously to achieve the best possible outcome for me. Throughout the process, Mr. Sack provided invaluable guidance, ensuring that I had a comprehensive understanding of my options and the potential consequences of each decision. His astute judgment and strategic approach allowed me to make informed choices that ultimately led to a more favorable resolution than I had initially anticipated.One aspect of working with Steven Sack that left a lasting impression was his integrity and reliability. He consistently followed through on his commitments, which provided me with a sense of trust and confidence. I was never left in the dark, wondering about the progress of my case, as he provided regular updates and promptly communicated any developments. Mr. Sack's professionalism and reliability instilled in me a sense of comfort and security during what could have been an overwhelming and stressful experience.In conclusion, Steven Sack is simply the best at his craft. His unwavering commitment to his clients, his exceptional responsiveness, his unmatched professionalism, and his ability to provide the best possible guidance are qualities that make him stand head and shoulders above the rest. I am eternally grateful for his outstanding representation, as it resulted in a better outcome than I could have ever imagined. If you find yourself in need of an employment attorney, I wholeheartedly recommend Steven Sack. With him by your side, you can rest assured that you will receive top-notch legal counsel and an advocate who will fight fiercely for your rights.
    Katrina Murray
    Katrina Murray
    1687950829
    This review comes less than 1 week of meeting Steven. From the first telephone call he was confident, professional and honest. He comes with experience that equal results. I was referred to Steven by another law firm for his expertise with my employment situation. I’m so happy the connection was made. I was given an appointment for the same evening for a consultation, though I opted for another day. In less than 72 hours..Huge progress was made. I have a ways to go but I’m convinced that I’m in good hands with Steven. I also received a FREE signed hardcover copy of Steven’s best selling book “FIRED!”. Thank you Steven you are THE BEST.. hands down.
    Christian Clare
    Christian Clare
    1685403495
    Steven Stack helped me with an unfair severance package.I had one session with him and he helped me get triple my severance and additional bonuses by taking his advice and reading his book. If you have an unfair severance, his time and advice is worth it.Steven does good work. He's the real deal. I'm so grateful for his generosity with his time, and helping people in cases big and small.
    I had the pleasure of working with Mr. Steven Mitchell Sack, Esq. this year.Steven is honest with his clients, sets realistic expectations about a case, and always follows through on his promises.I was referred to Steven by a friend of mine, his former client, and now I myself can highly recommend Steven to anyone seeking legal help in labor relations.
    Steven was straight to the point, thorough and extremely respectful regarding all matters surrounding my employment termination. As a young person who had never hired a lawyer before, I am very thankful that I found Steven and that he was on my side. Steven valued my concerns and was a pillar of education and support for me. Steven Sack is the attorney you want to represent you, I cannot thank him enough for all of his help.
    Marissa Alaniz
    Marissa Alaniz
    1682088068
    Steven was so helpful and patient. I had never been terminated from a job or worked with a lawyer before, so I had a lot of questions and anxieties. He not only explained my rights and helped ease my concerns around the situation, but he was even able to negotiate a better severance contract for me. He is incredibly responsive and I look forward to reading his book.
    cheryl klein
    cheryl klein
    1681421935
    I retained Steven Sack and he is a class act. His knowledge and advice was far beyond what I expected. I had learned so much. I am so happy to have found him. He is the real deal. You will be glad to have him on your side.
    Anonymous
    Anonymous
    1680819625
    Steven Sack is a an incredible Lawyer. Very professional, kept me updated thru the whole process. Can’t thank him enough. I recommend him. 5 stars are not enough.
    Lola
    Lola
    1679687265
    I had a great experience with Steven Mitchell Sack. He was very empathetic, detail oriented and extremely knowledgeable of employment law. He returned my calls and e-mails quite promptly, and was very clear and honest with what to expect. When it came to negotiating my severance package, this attorney came through for me. He’s tough, but knows how to talk to lawyers, particularly in my case as we were dealing with a huge company. Thank you Steve, I’m so appreciative of your help.
    hazal kork
    hazal kork
    1677624757
    Steven really knows what he is doing, and he helped me get justice, cared and understood about what really happened. Will recommend him to any friend who might need it in the future.
    Renee P
    Renee P
    1677531667
    Steven is an outstanding lawyer! He exceeded my expectations. He not only made me feel comfortable discussing my case from the start but was also very honest, attentive and does what he says! He is truly the BEST!!
    Rob Long
    Rob Long
    1677167052
    Steven pulled victory from the clutches of defeat. My situation was grim and I had no leverage in negotiating my severance. Steven stepped in, didn't over promise, and got me much better terms. He's great. An absolute miracle worker.
    Mr. Sack helped me get a severance when my employer had no intentions of providing me with one, after I was terminated. He tells you the truth; no bs, even though it might not be what you want to hear. He always answered my calls personally and exlpained next steps in details. He fought for my rights, and I'm very pleased with the outcome. Highly recommend!!
    Cenk Dölek
    Cenk Dölek
    1676157347
    Steven Sack is not only very knowledgeable in his profession, he is also a good person, someone who believes in and lives by certain values and principles. He was very professional, guided me as I needed, a true expert by all means. Looking forward to reading his latest book!
    Ricky Sharma
    Ricky Sharma
    1675876149
    Steven is an incredible person that also happens to practice his craft on a level that will impress you out the gate. Hiring him and talking to him will immediately give you peace of mind. One thing to be careful of is that after working with him you will start expecting more from every other lawyer you ever work with!
    David LaCombe
    David LaCombe
    1675382537
    Steven Sack exceeded my expectations when he represented me in negotiating the terms of my severance. Steven is incredibly competent, and what I appreciate most about him is that he is a gentleman.Steven is punctual, thorough and he always kept his word. If he says he is going to do something, he does it.I recommend Steven without exception. He earned my complete confidence.
    J Guttenplan
    J Guttenplan
    1675289769
    Steven is amazing. When working with him he is easy to understand, transparent, and does what he says he's going to do. He actually answers his phone when you call and gets back to you promptly -- a quality that's becoming quite rare these days!I'm very glad I was referred to him.
    Eddie Vargas
    Eddie Vargas
    1669919365
    I had the absolute pleasure of being represented by Steve and it was definitely more than a great partnership. He was with me throughout the entire process and the communication was absolutely stellar. Highly recommend Steve and his professional skill should you ever be in need of legal counsel or representation. Thank you Steve!
    J M
    J M
    1669067663
    Jeff R
    Jeff R
    1667326739
    Steven is a highly competent lawyer and extremely effective at what he does. Steven was referred to me and I will gladly refer him to others in the future.
    Steven is an incredible attorney and I highly recommend him!He always made himself available whenever I needed him, and he did exactly what he said he was going to do. He also stayed on top of my case with diligence, and consistently followed up with me regarding updates. I found him to be straightforward, honest and very knowledgeable. He is also a very nice guy and made me feel like someone was on my side and was going to help, and he gave great advice on how to move forward. I will certainly reach out to him if I ever need him again. Thanks greatly Steven!Vanessa S.
    A E
    A E
    1664895308
    Steven is fantastic. Efficient, concise and caring. Would 100% recommend.
    Bravheart
    Bravheart
    1664296141
    Steven Sack was very Professional, Sympathetic and truly cares about people he was very vital in helping me in resolving my issue Steve Sack truly loves his job & stress free. He was extremely responsive worked quickly, negotiating on my behalf. And it was worth it! I would definitely use him again with no hesitation!
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