Let’s say that one of your employees forms a corporation. The sole purpose of the corporation is to accept direct payment of wages for the employee. In other words, this arrangement does not affect the employee’s duties or your control over the employee at work. Indeed, maybe you provide the employee with business cards with both your company name and the employee’s name.
If this employee later sues you for discrimination — these things happen — take the argument that you are not an “employer” because you paid the employee’s corporation, rather than the employee, and burn it.
Burn it with fire.
“This argument borders on frivolous.” So says the United States District Court for the Eastern District New York
Glad we cleared that up.