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Marsha411JD, Lawyer
Category: Employment Law
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Experience: Licensed Attorney with 27 yrs. exp in Employment Law
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I signed a contract with a company to do some computer work.

Customer Question

I signed a contract with a company to do some computer work. I followed their instructions to maintain a timesheet and have it signed. In return they were suppose to pay me as agreed in the contract.
I began this project in May and since then I've been paid one time! I'm now to the point where I'm not going to continue until the contractor signs my time sheet so I can submit to the recruiter and be paid. No one is budging and I'm not getting paid!
What can I do?

Submitted: 11 months ago.
Category: Employment Law
Expert:  Marsha411JD replied 11 months ago.

Hello,

Thank you for your question, however, I will need a bit more information. Are you a W-2 employee of the company who is not paying you? If not, are you a W-2 employee of an agency? What does your contract say about when payments under the contract are due? What reason is the company giving you for not paying you?

Thank you

Customer: replied 11 months ago.

I am an independent contractor W-2 and I am working on just this one project for this agency. The agency RCI hired me to do a job for another company. RCI is suppose to pay me, but won't pay me without the other company signing my time sheet. The other company is basically holding my time sheets hostage and won't release over 2 months of work until I complete the project. RCI won't pay without a signed time sheet. It states in the contract they will not pay without the clients signature.

Customer: replied 11 months ago.

Additionally the contract states $80/hour and RCI called me and said they only want to pay $70/hr can they legally change that without a new contract?

Expert:  Marsha411JD replied 11 months ago.

Hello again,

Thank you, XXXXX XXXXX cannot legally be both an independent contractor and a W-2 employee. Those two types of employment are mutually exclusive. I believe what you might be indicating is that your work for the "company" is as a contractor and you are actually "employed" by RCI. I will just need to know if you have received a W-2 and if so is it from RCI or the other company? I also still need the answer to may question about when you are supposed to be paid by your employer.Thanks again

Customer: replied 11 months ago.

I'm supposed to be paid "45 days upon completion of services rendered" when I inquired about this they stated once they receive the signed time sheet they will pay 45 days later. I'm not exactly sure about W2 or W4, the only answer I can give is they don't take taxes out I am responsible to pay my taxes. I am not an employee of RCI.

Expert:  Marsha411JD replied 11 months ago.

Hello again and thank you for that information, it was helpful. Alright, it does appear that you are likely an independent contractor since the company is not deducting taxes. That means you will ultimately receive a 1099. In any event, because you are an IC, you are going to have to file suit for breach of contract against the company who you signed the contract with. Unless you have not follow the terms of the contract in terms of either completion of the work or submission of your time sheets, the contract language that you shared is very clear and unequivocal. That is that you must be paid no later than 45 days after services are rendered. That isn't when time sheets are submitted, but when you actually do the work.

Additionally, I see that you added a note that they were trying to change your hourly rate of pay. Unless the contract allows for a unilateral change of agreed to pay, then they would also be breaching the contract if they made the change in rate of pay. Of course, if the contract allows for withdrawal or cancellation of the contract without cause, they could just cancel the contract and then you would either have to renegotiate your hourly rate or find another assignment.

Please let me know if you need any clarification of the information that I have provided to you.

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