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1099 Restaurant Pay Dispute

Posted on 7/8/23 at 7:45 pm
Posted by Catchfalaya
Member since Feb 2018
1923 posts
Posted on 7/8/23 at 7:45 pm
I am an independent contractor in the restaurant business with oversight of two restaurants with a business partner who is the majority owner. My services are that of an area manager in which my duties are placing weekly food orders for the restaurants, delegating repair/maintenance work for issues that arise, etc. Helping maintain proper staffing levels.

I am paid off of monthly earnings from the restaurants net profits. I receive a 40% payment based off those profits (Example restaurant made $30,000 in June, I am paid $12,000) from the business owners accountant, I do not send a bill, etc. My issue arose a month ago when the owner contacted me to say that he would not be able to pay me for awhile due to needed renovation work per the franchise these restaurants are from. He does not want to borrow money to pay for these, and instead the cash the restaurants accumulate.

He and I have a professional relationship, and get along. However, this puts me in a bit of a predicament going without income for who knows how long. I’ve always wondered if I should be sending the invoices to them, or perhaps ask them to move me to a salary position. Any help or suggestions from this board on how to approach this would be great!
Posted by good_2_geaux
Member since Feb 2015
741 posts
Posted on 7/8/23 at 7:52 pm to
What does your contract state? Surely you have a contract that states how the owner pays you.
This post was edited on 7/9/23 at 10:00 pm
Posted by Catchfalaya
Member since Feb 2018
1923 posts
Posted on 7/8/23 at 7:55 pm to
Unfortunately no contract just verbal agreement, and a history of payments reflecting a 40% payment based off previous months income.
Posted by GEAUXT
Member since Nov 2007
29279 posts
Posted on 7/8/23 at 7:56 pm to
quote:

What does your contract state?


Only thing that matters
Posted by ChexMix
Taste the Deliciousness
Member since Apr 2014
25179 posts
Posted on 7/8/23 at 8:43 pm to
If you are going to continue the service, then he needs to continue the payments. Get your contract in writing.
Posted by FinleyStreet
Member since Aug 2011
7903 posts
Posted on 7/8/23 at 8:44 pm to
No contract? May as well send an invoice for a billion dollars.
Posted by GREENHEAD22
Member since Nov 2009
19626 posts
Posted on 7/8/23 at 8:47 pm to
Don't do another fricking thing until you get a contract. Good chance he is going to dick you around for awhile.
Posted by TJG210
New Orleans
Member since Aug 2006
28352 posts
Posted on 7/8/23 at 9:12 pm to
Yea, you better get a contract in place stat. He may try to dick you over and say improvements will count against your share or some other shady shite.
Posted by CalcuttaTigah
Member since Jul 2009
773 posts
Posted on 7/8/23 at 9:37 pm to
If you are so crucial to his operations, doesn’t he need you? Does he think you will work for free? How can you leverage your position to make him rethink this situation?

He is gonna string you along. Go ahead and find another job because this probably won’t end favorably to you. If y’all do work something out, get a contract and require him to give you notice of this like this in the future.

Not trying to be an arse but I couldn’t sleep at night if I didn’t have any sort of contract in place to protect my income and livelihood. Contracts are what make the world go round.
Posted by zuluboudreaux
God’s country USA
Member since Jan 2008
682 posts
Posted on 7/9/23 at 8:32 am to
Why did you not have this conversation with your “friend” a month ago.
First question would have been, ‘how does this affect my pay?”
Best way to lose a friend is to lend them money.
You working a month for free was a loan.
Problem May start when you need to collect to pay your own bills.
Get a contract immediately and have the much needed conversation with your friend.
Posted by diat150
Louisiana
Member since Jun 2005
43671 posts
Posted on 7/9/23 at 9:00 am to
quote:

If you are so crucial to his operations, doesn’t he need you?


Sounds like he was crucial but now that he put in the work to get it going right the “partner” is waffling.
Posted by lnomm34
Louisiana
Member since Oct 2009
12618 posts
Posted on 7/9/23 at 10:30 am to
quote:

I receive a 40% payment based off those profits


Surely this cannot be typical! Forty percent of profits?? Maybe I’m ignorant but damn!! You have no equity stake? You’re just a third party contractor to the owner?
This post was edited on 7/9/23 at 10:32 am
Posted by Fat Bastard
coach, investor, gambler
Member since Mar 2009
73086 posts
Posted on 7/9/23 at 11:04 am to
quote:

Unfortunately no contract just verbal agreement




NEVER EVER DO ANY CONTRACT WORK WITHOUT A CONTRACT!

YOU NEED TERMS AND CONDITIONS!
Posted by Fat Bastard
coach, investor, gambler
Member since Mar 2009
73086 posts
Posted on 7/9/23 at 11:08 am to
quote:

He is gonna string you along. Go ahead and find another job because this probably won’t end favorably to you


yup.


i have always had contracts when contracting out for others with my company and SUBMIT INVOICES.

always submit invoices also. I always do.
This post was edited on 7/9/23 at 11:11 am
Posted by FinleyStreet
Member since Aug 2011
7903 posts
Posted on 7/9/23 at 11:10 am to
quote:

Surely this cannot be typical! Forty percent of profits?? Maybe I’m ignorant but damn!! You have no equity stake? You’re just a third party contractor to the owner?



Right, the whole arrangement is weird AF. He may not actually be a 1099 employee at all. I'm not a lawyer but there are certain criteria you have to meet in order to legally be considered 1099 and it sounds like the "behavior control" may be in question here.

LINK
Posted by j1897
Member since Nov 2011
3578 posts
Posted on 7/9/23 at 11:16 am to
quote:

Don't do another fricking thing until you get a contract. Good chance he is going to dick you around for awhile.



I mean...

quote:

my duties are placing weekly food orders for the restaurants, delegating repair/maintenance work for issues that arise, etc.



Probably found somebody that will do that for 12 bucks an hour. I would look for a new job.
Posted by lnomm34
Louisiana
Member since Oct 2009
12618 posts
Posted on 7/9/23 at 11:30 am to
quote:

quote:

my duties are placing weekly food orders for the restaurants, delegating repair/maintenance work for issues that arise, etc.
Probably found somebody that will do that for 12 bucks an hour. I would look for a new job.


No shite. No way that work is 40% of profit kinda work!
Posted by tiigerr1
Member since Jun 2004
964 posts
Posted on 7/9/23 at 7:42 pm to
Maybe he tying the restaurant improvements to profitability. Not profits = no cut for you.
Posted by TheVig10
Baton Rouge
Member since Apr 2008
451 posts
Posted on 7/9/23 at 7:56 pm to
This owner is probably not great with confrontation or dealing with certain things directly so he came up with this story as his way of moving on from this guy. He may well need to renovate but having no contract makes it easy to replace said “consultant”
Posted by notiger1997
Metairie
Member since May 2009
58268 posts
Posted on 7/9/23 at 8:05 pm to
quote:

will do that for 12 bucks an hour
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