NYS 1099
A contract worker came to us through a staffing agency. The position they applied was posted for $16 an hour (NYS upstate minimum wage), but in actuality, he’s being paid $15 an hour. We want to hire them as our own employees and pay them $20 an hour, but the staffing agency has a contract buyout, and that figure is cost-prohibitive. Currently, we pay the agency $22, so it’s a lose-lose for everyone.
Given the discrepancy between the advertised rate of pay and the actual pay, and the fact that it is below the minimum wage, do I have grounds to void the staffing agency agreement? Does the 1099 status disqualify them from certain labor protections?
I plan to have an attorney draft a letter if this is actually a violation of labor law. Just trying to gauge if the circumstances are illegal and worth pursuing with an attorney. Thanks.