I think any lawyer would file a law suit to seek a settlement; however, I think he would also file a complaint with the Dept. of Labor. This is not a tax question, but a labor question. My experience with the DOL is that they come in with the assumption that labor has been screwed by the employer and they don't care what tax forms have been issued, they have a checklist for establishing an independent contractor (mentioned prior)---been thru it. Once they come in, they don't leave easily. They also make the assumption that labor has been forced to sign their rights away.
I think there will be a settlement, but he is asking for his job back, too. It will interesting to see where it goes.
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