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|City Cab, Ace Cab Closing
|UPDATED 3:16pm 3/25/10 Two taxi cab companies in Galesburg will be closed by this time next week, and one of their owners blames it on a battle with the state that isn't worth fighting.
Kenneth Hans says both City Cab and Ace Cab in Galesburg will close at the end of the night next Wednesday, essentially putting 18 cab drivers out of work. At issue, Hans claims, is that the Illinois Department of Employment Security claims the companies' drivers are his employees, and that employment taxes need to be paid on them.
Hans, who declined a request for an on-air interview, told WGIL that he believes the drivers, who often drive both City Cabs and Ace Cabs, are independent contractors and are self-employed. He says he approached the drivers about his concerns about staying open several months ago and whether or not they'd want to own their own cabs, and he doesn't believe they took him seriously.
Hans says it breaks his heart to close, but that "the economics aren't there."
Kenneth Hans has operated City Cab for the past 10 years, with his brother running it years before that. Ace Cab, operated by Karen Hans, opened after that.
Illinois Department of Employment Security spokesperson Greg Rivara, who also declined to be interviewed on-air, says the state does not close businesses when there are disputes about employees versus independent contractors.
Rivara does say that companies have the right to dispute the contribution level they're assessed into the federal Unemployment Insurance Trust Fund every year.
He could not legally address City Cab and Ace Cab specifically due to federal law.
|03 25 10 by Newsroom
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