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1099 Risk Blog

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September, 9 2008 by MBO Partners

Wrestlers Misclassified?

In our news of the weird for today, as reported by the Connecticut Law Tribune, attorneys for three wrestlers and a class of similarly situated persons filed a federal "legal smackdown" against the WWE for misclassifying the performers in independent contractor status, and denying them employee benefits. While seemingly absurd, the lawsuit is yet one more example of increased awareness around the issue of employee misclassification, and raises serious questions of Federal tax evasion. Beyond all that, as a writer for the Advocate quipped, "When you get hit in the face with metal chairs for a living, it's a good idea to have a dental plan."

Click here to download the full text of the court filing.

According to the Tribune:

"Golub's lawsuit focuses on the WWE's control over everything from the wrestlers' physical training regimen to their costumes and hairstyles, from where they perform to what storylines they follow. The latter includes mandating the 'specific dialogue of the requisite pre- and post-match boasting and badmouthing of the wrestlers' opponent(s),' Golub states.

"Further, Golub alleges, the wrestlers' contract 'explicitly forbids plaintiffs and other wrestlers from having a separate or distinct occupation or business.'

"And at all times, WWE 'unilaterally determines how the wrestlers are compensated,' Golub states."

 

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On these pages, we'll be exploring the complex and rapidly evolving business and regulatory conditions surrounding the use of independent contractors, consultants, freelancers, and 1099s.

Companies of all sizes that engage independent contractors for services are subject to myriad risks and responsibilities for using 1099s. We'll keep you updated on the latest from the IRS, case law, breaking news, educational events, and more. Bookmark this page and stay current!

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