What can be done when someone is hired as an independent contractor, but does not receive compensation for their work for several months?

Asked by ANef_is_Enuf (26839

) August 27th, 2011

I’m asking this on behalf of a friend. This is her own explanation of the circumstances, taken from an email:

“I was hired to work 3 scheduled hours a day M-F for 1,000 USD per month

They said that because we are contractors that it accounted for a delay in the set up of the payment process. Other people that have this same position had waited a couple of months in the past to begin receiving payment. Once they had they received what they were owed in one sum they then had no problem receiving the monthly pay.

Now since I have been brought on, the difference is the other contractors that I mentioned are independent and at this time I am being told I will get paid through a temp agency and become an contract employee through them. I am worried about that agency providing the total I am due when they will have discretion over aspects of my work and rate. Basically I am worried that if I encounter any trouble with what I am owed from what I have already worked it will be in the hands of the temp agency. I have already had a bad experience with the temp agency as I had previously submitted documents to them twice and nothing came of it. At the time I was under the impression it was a payroll service.”

-Now this agency is requesting the same documents she sent before, plus several others, before they will agree to pay her.

-She has been working for this company, which is a huge, well known, international gaming company, for 4 months… without any compensation.

-She did not sign any contracts with this company, however she has emails and public conversations where it is stated that she was hired, and had a regular work schedule.

What should she do? Does she have any way to ensure that she receives the original pay agreement of $1,000 per month? Should she continue working for this company, and how can she be absolutely certain that she receives the compensation owed to her?

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6 Answers

I worried about the difference between being an independent contractor qualified through the elected agency versus temp employee of that agency, in regard to receiving what I am owed by the company.
If I was just going on as a temp employee through a hiring agency and I was owed nothing then I would give it a try. I am concerned that if I sign on as an employee of the temp agency then there is an issue with what I am owed, it could be harder to get a resolution.

FishJelly (13

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Working through temp agency’s is common for large companies that use contractors.

If I were her, I would hand deliver the documentation, introduce myself to the management of the temp agency and express my concerns about getting paid and in a timely manner.

marinelife (62485

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Agree with @marinelife. Nothing in the explanation of her circumstances sounds unusual to me (we have contractors in exactly the same situation—on paper with another agency with which we already have payment setup..and then the smaller agency will pay the independent contractor)... this is pretty much par for the course when contracting to very large corporations.

I would also urge her to work to get “on-boarded” with the temp agency as quickly as possible—and in person if possible. She can and should inquire about the timing their payment cycles and if she’s in financially dire straits she could also possibly request a large lump-sum check of the past months that she has yet to be paid for..

geeky_mama (8930

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It isn’t at all unusual for companies to jerk their contractors around on payments. Worse case contact your states Attorney General. They usually have the horsepower to stand up to some of these places.

Adirondackwannabe (36713

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lawsuit

perspicacious (10982

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If you’re working in the US… make sure you’re documenting everything, and that when tax time comes, you file an SS8 if you feel like you’ve been misclassified.

gambitking (4206

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