Legal Question in Business Law in Arizona
Collecting on a Verbal employment contract
I am employed by a friend who pays me an hourly wage and a commission. We have a verbal agreement on the amount I receive and have had this agreement for over one year. I am paid as an independent contractor ( I pay my own taxes). We had a personal/non-work dispute and I am no longer welcome to work for my friend. I am owed about $6,000.00 in commissions and hourly wages. I am paid weekly but he holds back commissiions until he is paid for the job.Can I file a civil suit if he fails to pay? And if the court rules in my favor how can I collect the money?
2 Answers from Attorneys
Re: Collecting on a Verbal employment contract
Yes, you could file a civil suit, but you may have other remedies available to you. Even though you and your friend characterized your relationship as independent contractor, you may have been an employee under common law principles. If that were the case, there would be several ramifications, all of which would be positive for you.
Re: Collecting on a Verbal employment contract
Under these circumstances you may absolutely file a civil suit and under the current laws, you can do so in the local justice court(up to 10,000). If you do obtain a judgment, you can do a number of things, including a debtor's exam(to see what assets he has) and possibly, garnishment of bank accounts etc. If you have any questions, please do not hesitate to contact me.
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