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Ely, Counselor at Law
Category: Employment Law
Satisfied Customers: 102584
Experience:  Years of experience in running a medium sized law firm.
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If an employee of a company gets verbal approval to re a

Customer Question

If an employee of a company gets verbal approval to hire a consultant and after a month of working for them and worked on getting a non discloser agreement inlace, the fire that employee and now refuse to pay the consultant because he does not have a signed consultants agreement. Can that company refuse to pay for the work, they are located in New York.
Submitted: 1 year ago.
Category: Employment Law
Expert:  Ely replied 1 year ago.

Hello and welcome to JustAnswer. Please note:This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

They must pay.

This is because the employee that did the hiring had agency to do this and it was binding on the company. Agency can be binding in three ways. They are:

EXPRESS AGENCY - the agent has actual authority from the principal. Example is the power of attorney from above.
IMPLIED AGENCY - the agent has implied authority from the principal. An example would be an director or officer of a company - while they are not expressly representing the company, it is implied they are, and anything they sign would be binding unto the company.
APPARENT AGENCY - that there was apparent authority. Example is if you walked into a store, and asked how much an item is. A person who worked there told you $40 and rang you up for $40. Later you find out that the item was actually $150, and the employee did not even have the right to ring you up. Regardless, they had apparent authority to you, and the price quoted by the employee with the apparent agency is binding upon the business.

Here, the employee had express, implied, or apparent agency to hire, arguably. And this was binding. As such, they do not have to keep the person on, but they do have to pay for their work done.

If they do not pay, the individual can file a complaint with the Labor Board for a wage claim (HERE), or, sue in Court.

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Expert:  Ely replied 1 year ago.

Hello again. This is a courtesy check in to see if you needed anything else in regards ***** ***** question. I am simply touching base. Let me know. Thanks!