Legal Question in Business Law in California
Long History of Payments - Now no payments and no contract
Until July, I had worked for a company currently based out of California. First as an employee, and later moved to contract, though no papers were ever signed. The company paid me on a salary, and had a history of making payments to me (later to my company) bi-weekly and monthly.
A new manager took over and let me know that an adjusted salary and new contract was coming. In the meantime, I worked as usual. Two months later, in late July, he sent the new contract via email stating the new terms, which I did not accept. My prior contract was cancelled. Now he is refusing to pay for the services I provided in June and July -- claiming that a) He will not pay for several days of work which he feels did not meet his expectations, and b) Invoices did not reflect the new payment structure. I provided no services to this company upon receival of the new terms, and only want payment for the services provided prior to the new contract.
The owner of the company is not reachable, and I'm out over $6,000. I have proof of work provided throughout June and July, including assignments I had taken on from the new manager.
Is there anything that I can do?
Thank you for any advice you can provide.
4 Answers from Attorneys
Re: Long History of Payments - Now no payments and no contract
You are entitled to payment. In fact, you may be entitled to further damages, as you may be considered an employee. Contact the labor board and the IRS.
Joel Selik
www.seliklaw.com
Re: Long History of Payments - Now no payments and no contract
from the facts given, you definitely have a claim for your employer's implied breach of contract or for unjust enrichment at the very least in the alternative. if you would like a free phone consultation regarding your rights and options here, email us directly with your direct contact information today.
Re: Long History of Payments - Now no payments and no contract
You have various options. It appears you may still be considered an employee, so you may want to file a complaint with the labor board. You may also file an action in small claims court for a limited, $5,000.00. While you may be due $6,000.00, the cost of taking matter beyond small claims court may be prohibitive.
Re: Long History of Payments - Now no payments and no contract
Not only is there something you can do, if you live in Arizona, and can show you were an employee (rather than an independent contractor) you could collect treble damages. Whether or not you were an employee would not be decided on the basis of your agreement to switch to contractor status, but on the substance of your employment relationship, so you'd have a chance of prevailing. Further, if you were to apply for unemployment benefits, your employer could get dinged for having failed to pay employment taxes. Arizona DES takes a dim view of so-called "independent contractor" relationships.
So, there's a lot you can do.
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