FLAMING FAREWELL TO 1099s — Verizon will bar the use of most 1099 contractor crews under its FCC-backed agreement with NATE. It is anticipated that FCC regulators will press AT&T and T-Mobile to adopt comparable rules and restructure their pricing agreements for contracting.
On July 1, 2025, a landmark agreement between Verizon and NATE, the Communications Infrastructure Contractors Association, will provide contractors with an opportunity to report to Verizon those who may be performing construction services for the carrier without their knowledge and with improper 1099 status.
This monitoring promises to reshape the field for many hundreds of subcontractors. After years of contractor complaints about widespread use of 1099 crews on cell-site projects, Verizon has agreed to limit their deployment strictly and to empower legitimate contractors to report non-compliant workforces.
A history of misclassification and contractor outcry
Although this Facebook post solicited 1099 workers for a Verizon project, it is possible that the carrier was unaware that a prime contractor would be using a cobbled-together crew.
In recent years, Facebook groups have been flooded with solicitations for 1099-paid climbers and technicians. One typical post by Benjamin Linde sought climbers in Arkansas on a 1099 basis for Verizon projects. Almost immediately, industry veterans flooded the thread with legal and safety warnings (view screenshot at right).
Commenters noted that a proper independent contractor must secure and pay for their own OSHA, RF awareness, CPR, HazCom, and other certifications—credentials that can’t be issued under a contractor’s name without an employer-employee relationship.
Multiple participants noted that 1099 workers are responsible for carrying their own workers’ compensation, liability, and vehicle insurance. If they ride in a company vehicle or work over ten days, failure to do so could constitute criminal misclassification.
Veteran tower techs emphasized that the IRS, not the carrier, determines employment status. A climber labeled 1099 but treated functionally as an employee risks severe tax and legal penalties for both the worker and the contractor.
Although some of the information may be inaccurate, these exchanges not only underscored the prevalence of non-compliant crews but also exposed how even scrupulous prime contractors struggled to police them.
Several long-time contractors informed Wireless Estimator that they repeatedly alerted Verizon’s field and mid-level managers to 1099 misclassifications—only to see their concerns dismissed. It wasn’t until senior leadership engaged directly with NATE that meaningful change was initiated.
“If carriers’ teams actually monitored these Facebook posts, they could build a debarment list in days,” observed one veteran technician.
Key provisions of the Verizon–NATE agreement
In the wake of NATE’s advocacy, Verizon has committed to binding controls over its subcontracted workforce. The centerpiece of the July 1 rollout includes:
Strict limitation on 1099 crews
They are permitted only for specialized, short-term needs. Verizon will allow 1099 workers solely in narrowly defined scenarios, such as specialized welders or electricians engaged in low-volume, short-duration tasks, or to meet specific regulatory requirements.
Advance approval will be required. Prime and subcontractors must obtain written authorization before deploying any 1099 personnel.
Reporting and enforcement mechanism
Starting July 1, any NATE member may submit reports of suspected undocumented crews directly to Verizon’s compliance team.
Verizon said it will identify and block non-compliant companies from bidding on future work.
Zero tolerance policy
Verizon has pledged that any vendor violating these restrictions will face immediate suspension or termination of their contract.
Together, these steps aim to eliminate the safety, insurance, and compliance risks that arise when misclassified workers climb towers and install critical telecom equipment.
