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My Restaurant Switched All Servers From W-2 To 1099 Through A Staffing Company Overnight — Is This Legal?

Hi everyone,

I’m a server working at a restaurant in Florida. Until recently, all of us were working as W-2 employees, getting paid through ADP like normal restaurant staff.

From one day to the next, management told the entire staff that they were changing the payroll structure. Now they say we will all be paid through a staffing company and classified as 1099 independent contractors instead of W-2 employees.

Nothing about the actual job has changed:

We still work the same schedules set by the restaurant

We use the restaurant’s equipment and POS

We follow their rules and management

We perform the same role as before (servers)

So essentially the only change is that now we are supposed to be 1099 contractors through this staffing company instead of W-2 employees.

This raised a lot of questions for me:

Is it legal for a restaurant to suddenly convert servers from W-2 employees to 1099 contractors like this through a staffing company?

From a financial perspective, would it actually be better for me to stay as W-2, or open my own company/LLC and accept the 1099 payments?

Has anyone in the restaurant industry seen this structure before?

My concern is that servers typically don’t meet the criteria for independent contractors, since the restaurant controls our schedule, workflow, and the environment we work in.

Any advice or experiences would be greatly appreciated.

Location: Orlando, Florida USA

Thanks!

submitted by /u/chrisandradedn
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My Restaurant Switched All Servers From W-2 To 1099 Through A Staffing Company Overnight — Is This Legal?

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