Youre actually looking at the wrong test for the cocerns you have (chargebacks). You need to look at the Dept of Labor's test on this topic. The DOL is where you would go to fight the chargebacks. You would want the DOL to classify the chargebacks as illegal payroll deductions and therefore a violation of the Fair Labor Standards Act. The IRS test is for tax purposes only. The IRS will be made whole if you file an SS-8. You will be made whole by filing a complaint with the DOL. Both cost the companies money, but the DOL is more benifical to the worker.
Legally I think the company would be wrong for trying to charge you back for quitting. If your situation is like most installers in this industry you dont come close to meeting the standards of being in a true contractor/sub-contractor relationship with install companies. Therefore you would be classified an employee and be covered by "at-will employment" language.
This being said the company will probably do whatever they want. They will challenge you to fight them. They are betting you will accept whatever they give you. Why? Because most of your fellow installers have proven their thinking to be true. This is why i HATE those who say do nothing. DOing nothing created this type of enviroment in this business, and it sounds like this hostile, anti-worker enviroment is pushing yet another person out the business.
IMO I would keep in mind that the company has already shown you they dont care about breaking the law by calling you a contractor and treating you like an employee. They probably have no problem with breaking the law and charging you back. Remember that filing an SS-8 and filing a complaint with the DOL will cost them much more than the $$ they owe you. Also, see if you can get some of their ex- installer or even current installers to agree to file SS-8's and DOL complaints. The more the better.
You say they owe you $4000, but Im quite sure they owe you for back OT and other things which the DOL can order to be paid to you. That 4000 could very well change to 8000 or more. Sounds like this company has been in business for a while and would like to stay in business. Use that to your advantage.
Good Luck.
Re: forgot to paste the question........
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