Crystal Member Username: Crystal
Post Number: 86 Registered: 05-2007
| Posted on Sunday, December 30, 2007 - 1:42 pm: | |
One of our boys, 17, sometimes works until 2 AM and does not receive a paycheck, only cash payments. He works at a local restaurant. (The reason we did not know this until now is that the boy splits his time at his father's and mother's houses.) These seem to be clear violations of Michigan's child labor laws, in addition to illegal payroll practices. Moreover, we are worried about a 17-year-old driving home at 2 AM after having worked ten hours, and it seems a no brainer to turn in the employer. Fellow forumers, what are your thoughts about this? Is this common practice? Are child labor laws a "joke" that nobody pays attention to, or should we take this seriously? Thanks for your thoughts. |
Gazhekwe Member Username: Gazhekwe
Post Number: 1211 Registered: 08-2007
| Posted on Sunday, December 30, 2007 - 1:56 pm: | |
If it is not reported, it will continue, as no agency could monitor all the employers in the state. The young man probably would not thank you for reporting it and causing him to lose his job, however. If you chose to report it, the contact is the Michigan Department of Labor and Economic Growth. I am posting the site info, and if you search around at that site, you should be able to come up with the exact information about the young man's work conditions. http://www.michigan.gov/dleg/0 ,1607,7-154-27673-39617--,00.h tml |
Gazhekwe Member Username: Gazhekwe
Post Number: 1212 Registered: 08-2007
| Posted on Sunday, December 30, 2007 - 1:59 pm: | |
Applicable hours provision: A minor age 16 or older shall not work before 6 a.m. or after 11:30 p.m. Fridays and Saturdays, during school vacation periods, and during periods when a minor is not regularly enrolled in school. Note that approval may be granted for exceptions to those hours. |
Crystal Member Username: Crystal
Post Number: 88 Registered: 05-2007
| Posted on Sunday, December 30, 2007 - 2:12 pm: | |
How would treatment of a work-related injury (a cut from broken glass or a burn come to mind as possibilities) be covered by the employer if the child is not officially on the payroll? I am not concerned about our child (or other children employed there) losing their jobs. There are plenty of jobs for high school kids. My concern is that the employer is taking advantage of children. Am I out of line here, in thinking that the child labor laws are in place to protect children? |
Mackcreative Member Username: Mackcreative
Post Number: 151 Registered: 08-2006
| Posted on Sunday, December 30, 2007 - 2:26 pm: | |
I think labor laws are routinely violated, it seems like a good situation, with both parties avoiding taxes and paperwork, but can seriously go awry. Many (ok, most) artists employ assistants as independent contractors even when they are clearly not; just in our circle of friends one woman's hair caught on fire in a glass shop and torched her whole back, another friend lost two fingers in a clay mixer at a ceramic studio, both were uninsured and not covered by workman's comp. My point is, turn 'em in. Once you're 18 you can "choose" to be abused by your employer at your own risk, protect your kid while you still can. |
Johnnny5 Member Username: Johnnny5
Post Number: 681 Registered: 06-2005
| Posted on Sunday, December 30, 2007 - 3:11 pm: | |
At 17 years old he's old enough to be making the call in this situation. As you have said there are many low paying jobs available and if he wanted to leave he probably would have done so already. Also while it's against the law I highly doubt that your son minds getting paid under the table. A work related injury would require a lawsuit against the employer in order to recover damages. |
Frankg Member Username: Frankg
Post Number: 126 Registered: 08-2007
| Posted on Sunday, December 30, 2007 - 3:51 pm: | |
One other consideration to think about is to forget about your son for a moment - and consider this employer is abusing other workers, too. By not turning the employer in you are enabling the abuse of other workers. But I guess like Johnnny says, you have to balance that with your son's wishes. |
Bigb23 Member Username: Bigb23
Post Number: 159 Registered: 11-2007
| Posted on Sunday, December 30, 2007 - 3:52 pm: | |
Work related injury's are now well below the radar. To save my job, I did a quick fix on my forehead in a un-regulated and unsafe shop(instead of stitches at a clinic), with duct-tape and a do-rag. And I still was let go during a slow period a week later. I'm 52 years old and thought I knew what the rules were. I'm wrong now. |
Crystal Member Username: Crystal
Post Number: 89 Registered: 05-2007
| Posted on Sunday, December 30, 2007 - 4:16 pm: | |
Excellent point, Frankg. That came to mind right after I posted the initial inquiry. I tried to take myself and stepson out of the picture, and tried to consider the situation as objectively as I could. I came to the conclusion that the increased pay for a high school student was not worth working without the benefits and protection that a legitimate employee is entitled to. I admit I do not have an idea of how much extra pay the stepson could be earning per week by working under the table. $20, $50, $100, I don't know. It has occurred to us that the employer could be abusing other workers as well. We have an idea of our son/stepson's energy, stamina, and judgment, but who is looking out for the other kids? |
Plymouthres Member Username: Plymouthres
Post Number: 451 Registered: 02-2007
| Posted on Monday, December 31, 2007 - 8:23 am: | |
Crystal- I guess that I would add this question- Is it worth the extra $25, $50 or $100 dollars to possibly incur an injury that could cost a hell of a lot more than that in medical expenses alone? What if he were mopping a floor, fell and broke a leg or worse, had a fatal or catastrophic head injury? Who would cover that then? He is 17 and in your care(at least some of the time!). I would be worried that having knowledge of the fact of the terms of his employment and the obviously illegal usage of his work hours would somehow infer that you were part of the problem, particularly if you have to sue this restaurateur for his blatant disregard of the labor laws in the event that your son is injured on said job. No amount of money would let me allow my kid to subject himself to that type of job or potential abuse. Also, if the employer is willing to go to the length that he abuses even the under-the- table/hours issues, where would he draw the line at asking to do things that could be much worse? Good luck with this one. It is a difficult topic. |
Sstashmoo Member Username: Sstashmoo
Post Number: 808 Registered: 02-2007
| Posted on Monday, December 31, 2007 - 3:54 pm: | |
An employer can only pay someone 600 dollars per fiscal year "under the table". Which there really is no such thing, they are considered outside labor. This an old scam, if he's telling your son it's "under the table". Over 600 dollars your son will be getting a 1099 for his tax liability at the end of the year. The employer is not going to eat the tax on it. He has to show where those receivables went. Unless he's just going to outright lie about it to the IRS. (Or he's not even a licensed business i.e. no 38 number). And thats always possible. Most employers won't take that risk, when it's easier to hand someone a 1099. You do say he's paying in "cash" instead of check, so he's probably just a crook. Tell your son to find another job. There is nothing illegal about the straight cash pay arrangement, but it needs to be understood by both parties from the onset. If someone offers to pay you cash and does not intend to file a 1099, they are doing something illegal or just plain dumb. As far as the hours go, your son would be 18 by the time the state got involved. They basically don't care. |
Detroitplanner Member Username: Detroitplanner
Post Number: 1503 Registered: 04-2006
| Posted on Monday, December 31, 2007 - 5:18 pm: | |
I'd agree with SS Tashmoo, look for a 1099. Without it, your son has no proof to file a claim (should it be warranted). Unfortunately this will have tax implications for your son, but allowing him to start his work-life not paying taxes is not helping him learn how to earn. It is up to you to look out for the welfare of the child. Why would you expect the State to step in if the family allows this to continue? If he does not get one, being a guardian you should demand one. It will be your 'Ace in the Hole' should you discover that he cannot be working that late, and allow you to pursue further actions that would protect his rights. |
Lilpup Member Username: Lilpup
Post Number: 3267 Registered: 06-2004
| Posted on Tuesday, January 08, 2008 - 2:42 am: | |
From personal experience, most employers doing this won't file 1099s. Typically the business income is large enough to hide such cash payments without drawing attention to anything. Only a detailed audit by the IRS or state would find it. HOWEVER, if someone was to call the state and feds to let them know that this business was paying under the table as well as violating other tax and labor laws, one of the entities would probably check them. Aside from potential employee abuse, if 1099s aren't filed neither the state nor the Feds are receiving the tax monies they should be. It's also possible the business isn't carrying the worker's compensation insurance the state requires. BTW, aside from the comp/injury potential, this situation also means your son won't be able to collect unemployment if he ever became otherwise eligible. |
East_detroit Member Username: East_detroit
Post Number: 1386 Registered: 11-2003
| Posted on Tuesday, January 08, 2008 - 7:18 am: | |
Ahhh... I was right. I knew it was a stepson when you called him "the boy" |
Crystal Member Username: Crystal
Post Number: 92 Registered: 05-2007
| Posted on Tuesday, January 08, 2008 - 8:47 am: | |
Thanks, everyone, all good thoughts. My husband and I explained to son/stepson that his employer was taking advantage of him by not putting him on the payroll, and that tax evasion is illegal for both him and the employer. We explained that 17-year-olds may work until 11:30 PM on Friday and Saturday nights, but not until 2 AM or 3 AM. We emphasized that the biggest risk is if he gets hurt at work, his employer's workman's comp insurance does not cover him, because he is not on the payroll. Son replied that his employer is giving him a "really good deal" at $6 an hour plus tips. We told him we disagreed strongly with that, and that the employer does not care about him, only about the employer's own profits. The employer is saving himself money by not paying payroll taxes or insurance for the son, in exchange for putting him at risk. |
Ray1936 Member Username: Ray1936
Post Number: 2537 Registered: 01-2005
| Posted on Tuesday, January 08, 2008 - 3:02 pm: | |
Don't worry that your 17-year old has a head like a brick. In twenty-five years or so, he'll be using your arguments against HIS 17 year old. |
Kathinozarks Member Username: Kathinozarks
Post Number: 1011 Registered: 11-2006
| Posted on Tuesday, January 08, 2008 - 9:03 pm: | |
Amen, Ray! |
Sstashmoo Member Username: Sstashmoo
Post Number: 889 Registered: 02-2007
| Posted on Friday, January 11, 2008 - 2:21 am: | |
Any employer that doesn't carry workmen's comp is just asking for it. If the son get's hurt, he'd own that business. Comp insurance is not that expensive. Around 1500/yr. If they can't afford that they don't need to be in business anyway. I can't imagine why an employer that would risk an audit, fines, interest, and potential jailtime for tax evasion, to risk paying someone under the table. I mean, why would they? Just pay them, get their Social and send them a 1099 at the end of the year. If they're doing it any other way they are totally dumb. If the employee isn't making much annually, he wouldn't owe that much tax anyway. And all it's going to take is one disgruntled kid to report them to the IRS and it's all over. Some owners are just idiots when it comes to this stuff. I dealt with one, they would give me an invoice made out to me and asked if I'd write them a check made out to them personally. If he or I get audited... IRS has two things, money and time. It's just not worth the risk. |