Florida Record

Thursday, August 22, 2019

Miramar medical supply company wins partial dismissal in case alleging fraudulent W-2, 1099 forms

Federal Court

By Marian Johns | Jul 28, 2019

MIAMI — A federal court has granted part of a Miramar-based medical supply company's dismissal of a former employee's claims of unpaid overtime and fraudulent W-2 and 1099 filings.

According to the July 3 U.S. District Court for the Southern District of Florida filing, defendants IMED Health Products LLC and Christopher McCall asked the court to dismiss a complaint filed by plaintiff Thomas Kinne, alleging overtime pay Fair Labor Standards Act (FLSA) violations and fraudulent tax form filings. 

Kinne filed suit against IMED and McCall, alleging he worked about 50 hours per week for the medical supply company and did not receive overtime pay or promised commissions. Kinne says he was classified as an "employee" but was issued a 1099 that identified him as an "independent contractor" and that a 1099 form stated he earned $22,900 when he actually was paid $13,800 during the year, according to the court filing.

IMED and McCall argued that Kinne has "not sufficiently alleged individual coverage under the FLSA" and that Kinne failed "to state a claim under the FLSA and U.S.C § 7434."

The court granted the motion by IMED and McCall to dismiss in part and found that Kinne did not sufficiently plead "individual coverage" under the FLSA. U.S. District Judge Robert Scola Jr. stated Kinne's "allegations relating to individual coverage are too conclusory to state a claim."

Scola also concluded that Kinne did "sufficiently plead enterprise coverage under the FLSA" and denied IMED's and McCall's dismissal of that claim.

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