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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Employment Law
Satisfied Customers: 41221
Experience:  I provide employment and discrimination law advice in my own practice.
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Can a contractor hold 10% of a subcontractor's check, because

Customer Question

Can a contractor hold 10% of a subcontractor's check, because sub's workers comp policy expired? Contractor held 10% of all gross proceeds over a 3 week span.
Submitted: 2 years ago.
Category: Employment Law
Expert:  Dimitry K., Esq. replied 2 years ago.
Thank you for your question. Please permit me to assist you with your concerns. Generally a contractor can only hold the check is if there is something in the agreement that permits such holding. If there is nothing permitting such a withholding, it is arguably a breach of contract and can be pursued via the courts for compensation. It would likely not be an issue for the state Department of Labor because this is not an employer/employee relationship but a contractual relationship between contractors (where everything is defined as per the written terms of the agreement).Sincerely, ***** *****