Legal Question in Employment Law in Alabama

Non-Payment for Independant Contractor

I have a contract with a company to supply computer consulting services for a regular payment. I am considered an Independant Contractor and not an employee. My contract calls for me to receive payment on the 15th and 30th of each month for a flat fee of $4250 ($8500 Monthly). The company has come across hard times and has decided to only pay me $1500 or so a month instead of my regular payment but I still have to do all the work. They now owe me $19,000 and I need to take some action to get my money. If I stop working for them I know I will never get the back-pay but I need to take a stand for the payment. Can I place some kind of Lien on the company and its owners or is my only option suing them in court? Please advise me what ALL of my options are. Thanks


Asked on 2/25/04, 2:31 pm

1 Answer from Attorneys
Sterling DeRamus Sterling L. DeRamus, Attorney at Law

Re: Non-Payment for Independant Contractor

You have a simple claim for breach of contract and damages in excess of $10,000 so you are in Circuit Court as opposed to small claims.

While they did indeed breach the contract, your probability of recovery does not look that great. The company is not paying you because of hard times. That indicates to this lawyer that getting a judgment against them won't do you much good. Nor is it likely that you can sue the owners of the company individually if in fact the company is incorporated. Just because you stop working for them doesn't mean that they don't owe you for failing to live up to their side of the agreement. Thus if you leave them, and they do suddenly pull out of the doldrums you may have a viable claim. There's really not much more to say: vote with your feet, and find a better job or a better deal. Sue them if they survive but do so before any Statute runs out (2 years or 6 years depending on the nature of the contract).

Good luck.

Sterling L. DeRamus

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Answered on 2/25/04, 6:37 pm


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