{"id":368863,"date":"2021-09-23T13:08:12","date_gmt":"2021-09-23T18:08:12","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/litigation\/filing-a-lawsuit\/can-i-sue-a-1099-contractor.html"},"modified":"2026-05-21T12:44:58","modified_gmt":"2026-05-21T17:44:58","slug":"can-i-sue-a-1099-contractor","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/litigation\/filing-a-lawsuit\/can-i-sue-a-1099-contractor.html","title":{"rendered":"Can I Sue a 1099 Contractor?"},"content":{"rendered":"\n<div class=\"wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">Can I Sue a 1099 Contractor?<\/h1>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/steven-ellison-esq\/\">Steven Ellison, Esq.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/joseph-fawbush-esq\/\">Joseph Fawbush, Esq.<\/a>\n                | Last updated\n        <time>\n                            May 21, 2026\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n    <div class=\"fl-callout-text article-blockquote\">\n        <p>Yes, in certain instances you may be able to sue a 1099 contractor. These lawsuits often involve serious injury, property damage, or contract violations.&nbsp;<\/p>\n\n    <\/div>\n\n\n\n<div><p>A contractor may be responsible for creating a problem. For example, you might get injured by an independent contractor doing work for an employer. You might have paid someone to do a job that they end up not doing. Your business could have hired an expert who then, using your confidential business information, does similar work for one of your competitors.<\/p>\n<p>If you find yourself in any of these positions, you may have a claim against either the worker or even, in some instances, the worker&#8217;s employer. A <a href=\"https:\/\/lawyers.findlaw.com\/litigation-appeals?fli=dcta\" target=\"_blank\" rel=\"noopener\">litigation attorney<\/a> could help you better understand the labor laws the protect you.<\/p>\n<p>Alternatively, if you are a 1099 contractor with a <a href=\"https:\/\/www.findlaw.com\/employment\/legal-help-and-resources\/-can-i-sue-my-employer-.html\">claim against your client or employer<\/a>, learn about your <a href=\"https:\/\/www.findlaw.com\/employment\/hiring-process\/independent-contractors-overview.html\">employment rights<\/a>.<\/p>\n<p>This article explains the liability differences between contractors, employees, and employers. It also shows examples of claims you may have against a contractor or the company that hired them.\u00a0<\/p>\n<h2>What Is a 1099 Contractor?<\/h2>\n<p>The term &#8220;1099&#8221; comes from federal tax rules. The\u00a0Internal Revenue Service\u00a0classifies workers into two categories:\u00a0<a href=\"https:\/\/www.irs.gov\/instructions\/iw2w3#d0e1689\" target=\"_blank\" rel=\"noopener\">W2 workers<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.irs.gov\/forms-pubs\/about-form-1099-misc\" target=\"_blank\" rel=\"noopener\">1099 workers<\/a>. W2 workers are called employees. 1099 workers are often referred to as independent contractors or 1099 contractors.<\/p>\n<p>In general, people hire 1099 contractors to perform a certain task or tasks. They might work on a specific project or perform a specific service. They can be hired on a short-term or a long-term basis. They get to choose when they work, how they work, and often where they can work. They choose what tools and methods to use. They can work for more than one person or business at a time. Most employees\u00a0can&#8217;t do these things and don&#8217;t have these options.<\/p>\n<h2>Why Do Employers Hire 1099 Contractors?<\/h2>\n<p>There are several reasons why an employer might hire an <a href=\"https:\/\/www.findlaw.com\/employment\/hiring-process\/being-an-independent-contractor-vs-employee.html\">independent contractor versus an employee<\/a>, such as:<\/p>\n<ul>\n<li><strong>Overall cost:<\/strong> Independent contractors are often cheaper and involve less paperwork in their working relationship. W2 employees usually receive benefits, such as health and life insurance and 401(k) contribution matching. Independent contractors generally don&#8217;t qualify for these benefits.<\/li>\n<li><strong>Tax advantages:<\/strong> If a worker is classified as an employee, an employer must withhold and pay <a href=\"https:\/\/www.findlaw.com\/socialsecurity\/basics\/what-is-social-security.html\">Social Security<\/a>\u00a0and\u00a0<a href=\"https:\/\/www.findlaw.com\/healthcare\/medicare-medicaid\/medicare.html\">Medicare<\/a> taxes. Employers also pay\u00a0<a href=\"https:\/\/www.findlaw.com\/employment\/wages-and-benefits\/employment-and-taxes.html\">unemployment tax<\/a> on wages paid to an employee.\u00a0<\/li>\n<li><strong>Experience:<\/strong> 1099 contractors often become experts with specialization. As experts, they become attractive to people who have a specific job to be done.<\/li>\n<li><strong>Term of the contract:<\/strong> Employees are often employed for an indefinite term. In contrast, a 1099 contractor may be hired for a specific project on a short-term basis.<\/li>\n<li><strong>Insurance savings:<\/strong> Employees can receive workers&#8217; compensation if they are fired. However, a 1099 contractor does not receive workers&#8217; compensation if their contract is terminated. This can reduce unemployment insurance rates the employer would have to pay.<\/li>\n<li><strong>Relaxed worker rights:<\/strong> The federal <a href=\"https:\/\/www.findlaw.com\/employment\/wages-and-benefits\/fair-labor-standards-act.html\">Fair Labor Standards Act<\/a> (FLSA) requires an employer to pay the federal minimum wage and, in some cases, overtime pay at time and one-half for all hours worked in excess of 40 per week. Employees are also entitled to meal breaks and rest breaks. 1099 contractors are <a href=\"https:\/\/www.findlaw.com\/employment\/wages-and-benefits\/exempt-employees-vs-nonexempt-employees.html\">not covered by the statute<\/a> and lack these protections.\u00a0<\/li>\n<\/ul>\n<p>Keep in mind, however, that the U.S. Department of Labor might conclude that a 1099 contractor is a <a href=\"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/worker-classification-guide.html\">misclassified employee<\/a> and not a freelancer. If so, they can hold the employer responsible for unpaid wages.<\/p>\n<h2>Can You Sue the Company if a 1099 Contractor Hurts You or Damages Your Property?<\/h2>\n<p>Although the general rule in most states is that an\u00a0e<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/liability-and-insurance\/an-employer-s-liability-for-employee-s-acts.html\">mployer is not liable<\/a> for the negligence of an independent contractor, there are at least two pretty big exceptions: respondeat superior and apparent authority.<\/p>\n<p>The purposes of the exceptions are the same:<\/p>\n<ul>\n<li>To provide greater assurance of compensation to the harmed party<\/li>\n<li>To ensure that the business that benefits from the work bears its costs<\/li>\n<\/ul>\n<p>Suppose you are hungry. You order a pizza and wait\u00a0in your living room. You see the driver pull up, so you go to get your money. Suddenly, you hear a crash. You rush out your front door, only to find that the delivery driver accidentally drove through your garage door.<\/p>\n<p>You can&#8217;t afford to buy a new one\u00a0and the driver\u00a0can&#8217;t afford to pay you to get it fixed, but all is not lost. Even if the driver is a 1099 contractor, you may be able to sue their boss.<\/p>\n<h3>Exception One: Respondeat Superior<\/h3>\n<p>The first exception is what lawyers call\u00a0<a href=\"https:\/\/www.findlaw.com\/injury\/medical-malpractice\/vicarious-liability.html\">respondeat superior<\/a>,\u00a0which is Latin for \u201clet the master answer.&#8221; This theory focuses on the working relationship between the employer and the 1099 contractor.<\/p>\n<p>An employer is financially responsible for harm caused by a worker if that harm is committed within the course and scope of employment.\u00a0That means that so long as there isn&#8217;t a break in the chain of control between an employer and a worker, an employer can be liable for the worker&#8217;s negligence, even if that worker is considered by the employer to be a 1099 contractor.\u00a0<\/p>\n<p>A court would reject the characterization of the 1099 contractor for IRS purposes as an independent contractor misclassification and treat the employment status as employer-employee. This theory can sometimes be hard to prove because it is so fact-specific.<\/p>\n<p>In this example, if the driver chased while\u00a0delivering a pizza order during their work shift, it&#8217;s likely the restaurant could be liable. If, on the other hand, the driver is going home\u00a0after\u00a0their shift, the employer is no longer responsible for the driver&#8217;s behavior.<\/p>\n<h3>Exception Two: Apparent Authority<\/h3>\n<p>The second exception is what lawyers call apparent\u00a0<a href=\"https:\/\/dictionary.findlaw.com\/definition\/authority.html\" target=\"_blank\" rel=\"noopener\">authority<\/a>.\u00a0This theory focuses on the relationship between the employer and the person harmed.<\/p>\n<p>An employer is liable for harm caused when they hold a negligent worker out as having authority, either express\u00a0or implied, and someone relies on the employer&#8217;s representations. This theory can be easier to prove because it depends\u00a0on the injured party&#8217;s beliefs.<\/p>\n<p>It can also be easily overcome by an employer\u00a0making\u00a0it clear that their workers are independent contractors and are solely responsible for the harm they cause.<\/p>\n<h3>1099 Contractors and Injuries<\/h3>\n<p>The example above involves property damage,\u00a0with neither you nor the driver\u00a0hurt. It would have been different if you had been standing in the driveway when the driver pulled up.<\/p>\n<p>Sometimes 1099 contractors hurt someone when doing their jobs. These <a href=\"https:\/\/www.findlaw.com\/injury\/accident-injury-law.html\">personal injury cases<\/a> can get particularly complicated, and the stakes may be high.<\/p>\n<p>Proving an employer is financially responsible for the harm caused by 1099 contractors can become particularly complicated, so consider\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/personal-injury-plaintiff\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">speaking with a lawyer<\/a>\u00a0about whether you have a claim. Do so sooner rather than later, as most states\u00a0<a href=\"https:\/\/www.findlaw.com\/injury\/accident-injury-law\/time-limits-to-bring-a-case-the-statute-of-limitations.html\">limit\u00a0the time<\/a> in which you can bring a lawsuit.<\/p>\n<h2>When Can You Sue a 1099 Contractor Who Doesn&#8217;t Do What You&#8217;ve Paid Them for?<\/h2>\n<p>Suppose your furnace dies\u00a0in the middle of winter. You hire a heating company to fix it. They are very busy, so they tell you that they are sending over a <a href=\"https:\/\/dictionary.findlaw.com\/definition\/subcontractor.html\" target=\"_blank\" rel=\"noopener\">subcontractor<\/a> to do the work now because it&#8217;s an\u00a0emergency.<\/p>\n<p>The heating company requires half of the payment upfront, and the rest when the job is done. When the subcontractor doesn&#8217;t show up, you demand your money back from the heating company. They refuse a refund, saying that they paid the subcontractor so you should sue the subcontractor instead. You may have a claim against the heating company even though you were told a 1099 contractor would do the work.<\/p>\n<p>This scenario involves a\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-contracts-forms\/breach-of-contract-and-lawsuits.html\">breach of contract<\/a>. A contract is an oral or written agreement that is intended to be enforceable by law.<\/p>\n<p>The four elements of a legally enforceable contract are:<\/p>\n<ul>\n<li><b>Offer<\/b>: One party makes a promise to sell a product or provide a service.<\/li>\n<li><b>Acceptance<\/b>: The party to whom an offer was made agrees to the terms of the promise.<\/li>\n<li><b>Consideration<\/b>: The parties exchange something of value (e.g., money, a service, etc.).<\/li>\n<li><b>Capacity<\/b>: Each party must be legally able to enter into a contract.<\/li>\n<\/ul>\n<p>Some contract cases, like the one above, are straightforward. Others\u00a0can get complex and,\u00a0because they are governed by state law, the rules vary from state to state.<\/p>\n<p>Although you may be able to handle a simple case like this one by yourself, consider\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/contracts\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">consulting an experienced lawyer<\/a>\u00a0who knows the law that applies to your situation. Do so before running afoul of\u00a0state law limiting\u00a0the amount of time in which you can bring a claim.<\/p>\n<h2>When Can You Sue a 1099 Contractor Who Works for One of Your Competitors?<\/h2>\n<p>Suppose you own a company that makes computer software. You hire an outside IT person as a 1099 contractor to come in and customize a particular program. You know that they have other clients.<\/p>\n<p>While working on your program, they have access to and learn secret information about your business systems. Once the contractor finishes your project, they work on a similar computer program developed by one of your competitors. In doing so, they use the secret information learned while working for you.\u00a0\u00a0<\/p>\n<p>You may be able to sue the 1099 contractor for stealing and using your secret business information. Lawyers call this\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-laws-and-regulations\/theft-of-trade-secrets.html\">misappropriation of trade secrets<\/a>.<\/p>\n<h3>What Is a Trade Secret?<\/h3>\n<p>A\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-laws-and-regulations\/theft-of-trade-secrets.html#:~:text=Trade%20secrets%20are%20confidential%20information,to%20manufacturing%20or%20industrial%20secrets.\">trade secret<\/a>\u00a0is commercial or technical information used in a business that offers an advantage over competitors who do not know such information.<\/p>\n<p>This can include all sorts of information, such as chemical compounds, manufacturing processes, computer software, customer lists, and, in some instances, marketing information.<\/p>\n<h3>What Is Misappropriation of Trade Secrets?<\/h3>\n<p>Both state and federal law apply to misappropriation of trade secret cases. Many, but not all, states have adopted the\u00a0<a href=\"https:\/\/corporate.findlaw.com\/litigation-disputes\/protection-of-trade-secrets-a-comparison-the-economic-espionage.html\" target=\"_blank\" rel=\"noopener\">Uniform Trade Secrets Act<\/a>\u00a0(UTSA). Under the UTSA, you can recover from an independent contractor if you can establish the following:<\/p>\n<ul>\n<li>The information at issue was a trade secret<\/li>\n<li>You took reasonable steps to preserve the secrecy of the information<\/li>\n<li>The 1099 contractor wrongfully took the information<\/li>\n<\/ul>\n<p>If you win your misappropriation case under the UTSA, you can recover attorneys&#8217; fees if the misappropriation is deemed\u00a0willful and malicious.\u00a0You have three years to bring a claim under the UTSA.<\/p>\n<h3>Are Laws on Trade Secrets Different Between States?<\/h3>\n<p>State\u00a0laws do differ on misappropriation claims. Some states allow claims of misappropriation of confidential information not rising to the level of a trade secret, while\u00a0others\u00a0let you sue to stop someone from using your trade secrets before they can use them. It&#8217;s crucial\u00a0to know the law of the state that applies.<\/p>\n<p>There is also a federal statute that may apply. The\u00a0<a href=\"https:\/\/www.congress.gov\/114\/plaws\/publ153\/PLAW-114publ153.pdf\" target=\"_blank\" rel=\"noopener\">Defend Trade Secrets Act of 2016<\/a>\u00a0(DTSA) gives you the right to sue a 1099 contractor in federal court if you have a misappropriation of trade secrets claim as defined by the statute.<\/p>\n<p>If you succeed, you may recover double damages and, if the 1099 contractor acted in bad faith, attorneys&#8217; fees. You have three years in which to bring a claim under the DTSA.<\/p>\n<p>As you can see, misappropriation claims can get complicated. An\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/employment-law-employer\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">experienced lawyer<\/a>\u00a0will be able to help guide you.<\/p>\n<h2>Consult a Lawyer To See if You Have a Claim Against a 1099 Contractor<\/h2>\n<p>If you are wronged by a 1099 contractor, don&#8217;t panic. You may be able to seek relief in court\u00a0whether you were\u00a0injured,\u00a0they failed\u00a0to do work you paid them to do, or they stole your valuable confidential business information and used it for a competitor.<\/p>\n<p>In situations where the independent contractor may not have the money to pay you, or if they disappear without a trace, you may be able to sue the employer who hired them.<\/p>\n<p>Consider\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/litigation-appeals?fli=dcta\" target=\"_blank\" rel=\"noopener\">consulting a lawyer<\/a>\u00a0for legal advice about what your rights are and whether you should consider taking legal action. 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                 for=\"was-this-helpful__radio-button--missing-info\"\n                        >Missing the information I need<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--complicated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Too complicated\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--complicated\"\n                        >Too complicated \/ too many steps<\/label>\n                    <\/div>\n                    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<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>If a 1099 contractor breaches your contract or injures you in some other manner, you may have a legal path to compensation. Learn about trade secrets, apparent authority, and much more at FindLaw.com.<\/p>\n","protected":false},"author":41135,"featured_media":0,"parent":368853,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"app\/Http\/Controllers\/Templates\/ArticleWithBreadcrumbsController.php","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_autodraft_ids":[],"_cloudinary_featured_overwrite":false,"_sb_is_suggestion_mode":false,"_sb_show_suggestion_boards":false,"_sb_show_comment_boards":false,"_sb_suggestion_history":"","_sb_update_block_changes":"","_is_real_time_mode":false,"_realtime_collaborators":"","footnotes":"","cf_checklist_status":["SEO Title Length","External Links","Alt Text for All Images","Category Assigned"]},"categories":[2803],"tags":[],"state_laws_tags":[],"flmsa":[],"class_list":["post-368863","page","type-page","status-publish","hentry","category-litigation"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/368863","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/users\/41135"}],"replies":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/comments?post=368863"}],"version-history":[{"count":3,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/368863\/revisions"}],"predecessor-version":[{"id":396514,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/368863\/revisions\/396514"}],"up":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/368853"}],"wp:attachment":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/media?parent=368863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/categories?post=368863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/tags?post=368863"},{"taxonomy":"state_laws_tags","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/state_laws_tags?post=368863"},{"taxonomy":"flmsa","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/flmsa?post=368863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}