He may be cheating on me...

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Wow, you guys in the US really think legal action for every little thing. Up here, we are still doing things the old fashioned way, simply trying to do what's right. If someone screws with me on a personal level, I'll either beat on them or simply forget about them. My blood is 100% Italian, what can I say?

As far as my finances go, a CGA handles everything and the way I pay my subs is standard and acceptable by Revenue Canada, so that's a non-issue. My accountant is very experienced and has gone through many government audits with flying colors, even with my family's high $$$ car biz. So I know I am doing everything right according to Canadian law.

I have known the guy in question for about 15 years and consider him a friend. He was even present at my 40th birthday party and spun a few tracks next to our very own Jay Tea Vegas. He is trying to back-pedal now saying that he didn't know about it. He even offered to pay me my cut which is normally the retainer. He claims that his girlfriend handles all the bookings for him now, that if he gets a call, he refers them to her. He said it was too hard for him to keep things straight on his own since he is so busy with his full time job and his DJ work. Question still remains, how did they get his number? In the past month alone, I sent him two gigs which I paid him 1500 bucks for. He works at a lot of pubs and also has his own DJs working for him at those pubs. He supplies his own gear at the pubs and only gets between $150 to $175 for each gig. He really likes the events I send his way since he really makes a lot of $$$. He said there is no way he would ruin our friendship for a gig. I kind of believe that part. I f’n hate drama.
 
Good friends have a way of patching things up. You take the high ground...he's sure to follow. :)
 
He did it to me when he had no girlfriend handling his business. Case closed. For those who dont know the whole story Steve gave him gigs throughout the yr much like we traded off gigs when double booked. Im still sending Steve gigs from leads I had in BC though Im here in Toronto now.
 
I know some people like this and I have no dealings with them anymore. My business is my business and if you can't promote and defend my services (under which you are working), then I can't help you.
 
Jon, I can tell you are one with whom I would have enjoyed working with if I were in your neck of the woods.
Relationships lke yours and Steve's are built on trust, ethics, and willingness to "share the wealth." Having an associate that you know will do more than a "good Job" is priceless. :)
 
I guess I am the oddball again.....

I have subbed for several other services and had several others sub for me over the years. As a matter of fact just 2 weeks ago I did one for another service. I have always made it very clear when I sub for someone I pass out my cards if asked. I don't actively advertise but I don't deny who I am either. I also expect the same in return when I send them all I expect is honesty don't tell me you are passing out my card and then pass out yours.

Currently I have two other DJs. One is my wife and the other guy has his own thing on the go but uses our cards because he prefers to work through us.
 
Most businesses want to grow. They can't really do that unless you get rebooked through the same vendor for which you originally appeared. If someone calls you direct via the phone book or other method, I think you're ok - but a rebooking or referral from a show that you're working for someone else should go back to the business that got you the job in the first place.
 
You can't have a non-compete agreement with a sub-contractor - it's an oxymoron. What you can have is an agreement not to solicit the specific clients being served by the subcontractor, protection of proprietary information, and standards of practice for the work being done.

The IRS rules have to be interpreted relative to the occupation in question. For example, your office manager or vice president of anything would never pass muster as a subcontractor. Those roles easily fold into the IRS guidelines as employee. Field workers are a different story however, and the fact that you have specific requirements and standards that have to be met does not prohibit you from out-sourcing the labor.

A DJ being told what to do in an entertainment setting where there is a certain "show" to be delivered does not constitute the kind of control and direction the IRS is concerned with.

I've seen a lot of DJs go before the IRS and the overriding issue when it comes to DJs is whether or not they actually have any meaningful DJ work apart for the multi-op 1099ing them. In other words - if all your eggs are in one basket then you are an employee.
 
I guess I am the oddball again.....

I have subbed for several other services and had several others sub for me over the years. As a matter of fact just 2 weeks ago I did one for another service. I have always made it very clear when I sub for someone I pass out my cards if asked. I don't actively advertise but I don't deny who I am either. I also expect the same in return when I send them all I expect is honesty don't tell me you are passing out my card and then pass out yours.

Currently I have two other DJs. One is my wife and the other guy has his own thing on the go but uses our cards because he prefers to work through us.

You're not alone but, when I sub I'm often with a crew of other people who are employees and the "show" being put on is not necessarily consistent with how I would do things. Therefore, I represent the entity booking that show and not myself. Occassionally I get recognized by either other vendors or guests and I simply explain that I freelance my talents.

On rare occassions I am confronted by someone who specifically does not want the company I might be working for based on some prior experience or personal preference. In those instances I will provide them with my card and simply explain the circumstance to whoever I got the sub work from. There's no sense in letting a person who was interested in booking you walk away becasue they didn't like the name of the agent on the card you handed them.

The key to everything is "communication." It's when you do things on the sly that brews trouble.
 
Bob this thread is not about the IRS which has no cred in Canada. Its about a longtime family friend negating honest, credible practice and respect for the hand that has fed him handsomely over the years.
 
Bob this thread is not about the IRS which has no cred in Canada. Its about a longtime family friend negating honest, credible practice and respect for the hand that has fed him handsomely over the years.

Jon, you have the personal knowledge and experience with the people involved to see it that way. To the rest of us it's just another story about subcontracting which brings up all sorts of questions relative to the experiences and locations specific to the rest of us - Hence the inevitable tangents.

If it was all personal it would be in an email. :)
 
Just to be clear, there is no legal merit to a non-compete contract. They are complete garbage and completely non-enforceable. Now, I agree that this guy has little to no ethics, but he has not broken any laws. If anything, the multi-op owner may have broken the law by skirting tax payments to the IRS. If they are not your employee, then you cannot control how the work is accomplished and you certainly can't ask them to represent themselves as your employee by passing out your business cards and/or hanging your banner at the gig.

Read this from the IRS website.

http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

Sorry - you are dead wrong. I have been to court for this very same issue twice in 30 years and won. I DO have non-compete agreements and there are conditions which they must abide by in the contract. They are contractors (I have already been audited by the government and passed). I also have employees which also sign the same agreement with a few different terms. One aspect is that my subs cannot pass out their own business cards since they are representing the company and I am liable for their actions at the event.
 
Wow, you guys in the US really think legal action for every little thing. Up here, we are still doing things the old fashioned way, simply trying to do what's right. If someone screws with me on a personal level, I'll either beat on them or simply forget about them. My blood is 100% Italian, what can I say?

As far as my finances go, a CGA handles everything and the way I pay my subs is standard and acceptable by Revenue Canada, so that's a non-issue. My accountant is very experienced and has gone through many government audits with flying colors, even with my family's high $$$ car biz. So I know I am doing everything right according to Canadian law.

I have known the guy in question for about 15 years and consider him a friend. He was even present at my 40th birthday party and spun a few tracks next to our very own Jay Tea Vegas. He is trying to back-pedal now saying that he didn't know about it. He even offered to pay me my cut which is normally the retainer. He claims that his girlfriend handles all the bookings for him now, that if he gets a call, he refers them to her. He said it was too hard for him to keep things straight on his own since he is so busy with his full time job and his DJ work. Question still remains, how did they get his number? In the past month alone, I sent him two gigs which I paid him 1500 bucks for. He works at a lot of pubs and also has his own DJs working for him at those pubs. He supplies his own gear at the pubs and only gets between $150 to $175 for each gig. He really likes the events I send his way since he really makes a lot of $$$. He said there is no way he would ruin our friendship for a gig. I kind of believe that part. I f’n hate drama.

Unfortunately you are pretty much correct. Many U.S. businesses need to look at things from a legal standpoint because we, unfortunately, cannot do things with a handshake anymore. You do things that way and look where it got you. It is a shame and I think you should leave this guy out to dry. He is unethical in his business practices and that should speak for itself now and in the future. Friend or not, he is feeding you a line of S#@T.
 
You can't have a non-compete agreement with a sub-contractor - it's an oxymoron. What you can have is an agreement not to solicit the specific clients being served by the subcontractor, protection of proprietary information, and standards of practice for the work being done.
Correct, and why would that not be considered a non-compete?

A DJ being told what to do in an entertainment setting where there is a certain "show" to be delivered does not constitute the kind of control and direction the IRS is concerned with.
You are assuming the control and direction is always by the company. Our planning forms are filled out by the client and that is who controls the direction.
 
Sorry Rick, but it would only cost me my time. I wouldn't even bother to hire a lawyer. Tennessee is a right to work state. Case closed. It would cost the plaintiff to file charges and his lawyer's fees if he so chose to hire one.
Virginia is a right to work state too. It only means that you cannot be forced to join a union as a condition of your employment. This has nothing to do with unions.
 
FYI - legal definition:

Right-to-work laws are state laws that prohibit both the closed and union shop. A right to work law secures the right of employees to decide for themselves whether or not to join or financially support a union. However, employees who work in the railway or airline industries are not protected by a right to work law, and employees who work on a federal enclave may not be. Under federal labor law and state right to work laws, which exist in slightly less than half of the states, you have the right to resign from membership in a union at any time. If you resign from membership, you may not be able to participate in union elections or meetings, vote in collective bargaining ratification elections, or participate in other "internal" union activities. If you resign, you cannot be disciplined by the union for any post-resignation conduct.

If you resign from union membership, you are still fully covered by the collective bargaining agreement that was negotiated between your employer and the union, and the union remains obligated to represent you. Any benefits that are provided to you by your employer pursuant to the collective bargaining agreement (e.g., wages, seniority, vacations, pension, health insurance) will not be affected by your resignation. Howver, the union may exclude you from some "members-only" benefits. Although you may resign from union membership at anytime, you may be limited to a specific "window period" before you are able to end any automatic dues deductions.

State right to work laws essentially require unionized workplaces to become "open shops". Open shops must allow employees to work, whether or not they join the associated unions or pay regular dues.
 
Well it looks like, regardless of what they did before, the courts are now starting to recognize them as an enforceable contract(according to this source).
http://www.myemploymentlawyer.com/non-compete-covenant-FAQs.htm

edit: Note that it refers to employer/employee relationship. It doesn't speak to sub-contractors.
 
Well it looks like, regardless of what they did before, the courts are now starting to recognize them as an enforceable contract(according to this source).
http://www.myemploymentlawyer.com/non-compete-covenant-FAQs.htm

edit: Note that it refers to employer/employee relationship. It doesn't speak to sub-contractors.
There are contracts between Employers and employees and then there are contracts between Businesses and sub contractors. Two different areas governed by two different statutes.