Just make sure you understand that minimum wage is only for W2s. Shops likely dont only us employee labor and likely treat their mechanics and contractors often enough.
Just make sure you understand that minimum wage is only for W2s. Shops likely dont only us employee labor and likely treat their mechanics and contractors often enough.
Then autoshops are exposed to the risk that mechanics report/sue them for "employee misclassification" and unpaid wages. Employers are better always pay at least minimum wage, even for 1099s, otherwise more incentive for workers to report them.
Of course many are ok being exposed to that risk, depends on the jobs. Also there's tips that help employers avoiding the unpaid wages. However, worker must report the tips received, and if they received less tips to cover the minimum wage, then employer must pay employee the difference (so the total pay would be at least min wage).
I saw that restaurant owners pay at least min wage even to illegal workers who don't even have SSNs. I assumed that unpaid wages is more serious than hiring illegally.
> Then autoshops are exposed to the risk that mechanics report/sue them for "employee misclassification" and unpaid wages.
I don't think that is a very high risk for the "employer". There's a reason that things like this go on for so long: https://www.epi.org/publication/employers-steal-billions-fro...
Those billions are just the reported amounts.
Yes, but if you are one of Uber/Lyft drivers you're less likely to receive anything from reporting them than if you're one of only 5 mechanics in an auto shop. Auto shop owner does not have an army of lawyers to drag the case.