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Co. not paying contracted worker

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  • Co. not paying contracted worker

    Question from Northeastern Indiana. Husband is contracted to do onsite tech work for a Chicago company. The Chicago company was contracted by a Georgia company, the customer of which is theirs. Payroll works in which my husband gets two checks per month, the 2nd and the 15th (the latter includes expenses as well).Was supposed to get final check Nov 15th, but IL company is telling all the techs to "be patient", that they are negotiating with the Georgia company to ensure that they as a vendor get paid first, which of course brought their lawyers into the whole mess and hence delayed the whole payment process (Corporate customer pays Ga company, Ga pays IL co., they pay techs)...The Il company keeps stalling the techs awaiting their payment. The initial 2-3 days "negotiations" has now turned into a month of waiting for the final check (for work/services rendered in the end of October, no less). The techs are obviously agitated, keep getting the same story, and the companies are both seemigly reputable companies. Is there any federal or state legal recourse in a case where a contracted employee is not being paid in a timely manner (or at all so far) due not to any personal performance issue, but due to internal company problems? Is the company violating any federal labor laws in delaying payment? In the meantime, there are at least 5-7 techs awaiting final payment on this,they all have signed pprwk, contracts etc stating this payment arrangement. Please advise! Thanks!

  • #2
    Originally posted by ajlepera
    Question from Northeastern Indiana. Husband is contracted to do onsite tech work for a Chicago company. The Chicago company was contracted by a Georgia company, the customer of which is theirs. Payroll works in which my husband gets two checks per month, the 2nd and the 15th (the latter includes expenses as well).Was supposed to get final check Nov 15th, but IL company is telling all the techs to "be patient", that they are negotiating with the Georgia company to ensure that they as a vendor get paid first, which of course brought their lawyers into the whole mess and hence delayed the whole payment process (Corporate customer pays Ga company, Ga pays IL co., they pay techs)...The Il company keeps stalling the techs awaiting their payment. The initial 2-3 days "negotiations" has now turned into a month of waiting for the final check (for work/services rendered in the end of October, no less). The techs are obviously agitated, keep getting the same story, and the companies are both seemigly reputable companies. Is there any federal or state legal recourse in a case where a contracted employee is not being paid in a timely manner (or at all so far) due not to any personal performance issue, but due to internal company problems? Is the company violating any federal labor laws in delaying payment? In the meantime, there are at least 5-7 techs awaiting final payment on this,they all have signed pprwk, contracts etc stating this payment arrangement. Please advise! Thanks!
    Because your husband and the Techs are not hourly workers, I don't believe any wage and hour laws have been violated. However, you should check with the U.S. Dept. of Labor (www.dol.gov) and the Indiana DOL ( http://www.ai.org/labor/index.html) to be sure.

    Your husband may need to go to Small Claims Court or some other court to get his money.

    Good luck.
    In Solidarity,

    Wayne

    www.waynemarshall.org

    Comment


    • #3
      Reply to unionwayne

      Thanks for your input! Sorry it took so long, I had some login problems. Anyway...So my husband and I consulted a friend, a corporate lawyer. He did some research and advised that although hubby's a "contracted employee", they get paid by the hour, and in this circumstance hubby's entitled to triple damages if it were to go to court. Something about if you aren't paid for work done within x amount of days, either 2 weeks or one month (can't recall which), that there's an accrual system? he suggested that my husband call the company and advise them that if he didn't get his paycheck by a certain date, he would be forced to file charges against the company and would be entitled to triple damages and all legal fees. The president of the company was obviously irate, sd he would call his lawyer and call my husband back. He never called back that evening. However, the next day around lunch, the entire paycheck arrived at our doorstep via next day air. The man never did call my husband back, so I suppose his lawyer advised him to pay him and get it over with...

      Comment


      • #4
        Originally posted by ajlepera
        Thanks for your input! Sorry it took so long, I had some login problems. Anyway...So my husband and I consulted a friend, a corporate lawyer. He did some research and advised that although hubby's a "contracted employee", they get paid by the hour, and in this circumstance hubby's entitled to triple damages if it were to go to court. Something about if you aren't paid for work done within x amount of days, either 2 weeks or one month (can't recall which), that there's an accrual system? he suggested that my husband call the company and advise them that if he didn't get his paycheck by a certain date, he would be forced to file charges against the company and would be entitled to triple damages and all legal fees. The president of the company was obviously irate, sd he would call his lawyer and call my husband back. He never called back that evening. However, the next day around lunch, the entire paycheck arrived at our doorstep via next day air. The man never did call my husband back, so I suppose his lawyer advised him to pay him and get it over with...
        I'm glad things worked out. Enjoy the holidays!
        In Solidarity,

        Wayne

        www.waynemarshall.org

        Comment


        • #5
          you too! Thanks!

          Comment

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