Can a contracted employee receiving a 1099 get named in the company lawsuit?
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Can a contracted employee receiving a 1099 get named in the company lawsuit?
I am working for a LLC company who is being sued and I am a contracted
employee. I receive a 1099 from the company. The lawsuit keeps
changing into something else. I am not sure if I am safe as a employee
as I do not want to get named in the lawsuit as well and they come
after my family, home and money. Is that possible?
Asked on November 18, 2016 under Employment Labor Law, Idaho
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
Two different issues here.
First, can you be successfully sued? Not unless you personally did something wrong (e.g. defamed someone, misappropriated property, including intellectual property, ran over someone while driving a work vehicle, etc.) in the course of employment: you are not liable simply because you are a contractor working for the LLC, but could be liable for your own wrongful acts, if any.
Second, can you be at least initially *named* in a lawsuit? Unfortunately, yes: the courts do not "prescreen" lawsuits to make sure they are valid as to all defendants, so the plaintiff, or person suing, can name you and force you to respond. But if there is no basis for holding you liable, you should have a good defense and can likely "get out of" the suit (e.g. get it dismissed as to you) fairly early in the process.
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