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Daniel Freudman
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When is a "Company" allowed to withhold paying an independent

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When is a "Company" allowed to withhold paying an independent contractor if the independent contractor owes money to "The Company"?

Technically, the independant contractor could still claim the money from the company. However, from a practical standpoint, the company would just counterclaim against the contractor for the money they are owed, so they two amounts would likely partially (or entirely) set off each other.


So, if the contractor has performed the work, he is entitled to the payment and the company can't just refuse to pay him lest they expose themselves to a lawsuit. But, if such lawsuit takes place, the company could (counter)claim against the contractor the money which they are owed.



Hopefully that is of assistance.


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