Timeshare Sales Force? Employees, Of Course
Lots of comments sent in regarding yesterday's post about California's penalties regarding intentional misclassification of workers. Now, onto timeshare sales people.Timeshare and hotel companies who think their sales force is made up of independent contractors and not employees should really weigh the exposure. The case of Whitehead et al v. Kalins (August term 2008, No. 03764) (Court of Common Please of Philadelphia County, PA) shows how both the IRS and a Pennsylvania court concluded this year that timeshare sales people are indeed employees: Timeshare Employee Determination.pdf . Class plaintiffs sued the timeshare company and won over $2.2 million in wages, benefits, penalties, and interest for the employees.
TIMESHARE COMPANIES:AREN'T YOUR SALES PEOPLE REALLY EMPLOYEES?
Other timeshare and hotel companies have as much risk with penalties (at least in California), wage-and-hour liability, federal/state employment taxes, Medicare, unemployment insurance, workers compensation, and coverage under employee benefit plans (health/401(k)/stock option).
