Legal Question in Employment Law in California
I live in California. I worked as an independent contractor for more than one year (5/2008-9/2009). I as a Data Entry Clerk for a mortgage protection company. The company was located in Fresno, California. I worked in West Covina, California. I was laid-off my this company. I still have not received my last paycheck. The amount owed is $535.50. I have sent multiple emails, letters and phone calls to my old boss. He told my that the company had to close. He also told me that he is waiting on check that he is supposed to receive from Florida($20,000). He said that he is owed this money for the work that he provided. I have not received my paycheck in more than four months. What should my next step be?
2 Answers from Attorneys
You state that you were an independent contractor but describe your relationship as if you were an employee. There may be significant tax implication if you were misclassified. These issues are typically handled through the California Employment Development Dept.
Regardless of your status, you can file a small claims case against the company, for the money owed to you. However, if the business has shut down and there are no tangible assets to secure payment, you should weigh the pros and cons of whether or not it is worthwhile to proceed. You could end up with a judgment but no way to collect.
Do you homework about the status of the company before you decide what is best for you.
An employee can bring an action through the Labor Commissioner for unpaid comp, interest and penalties. An IC can sue for unpaid contract payments. You can sue in small claims court at almost no cost, but if the company is actually 'gone', it would be an exercise in futility.
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