Legal Question in Business Law in Massachusetts

Re: Company is withholding my paycheck

Although the offer of $1,000 may seem like poor compensation for all of the work you did, accepting it may be the smartest thing to do.

First, if you are an independent contractor (and not an employee) your compensation is controlled completely by the terms of your contract with the company. When you read it, you may find that there are provisions that allow the company to deny your compensation for reasons such as the ones they stated to you.

Second, as an independent contractor, your only means of recovering any money they do owe you is through the courts. Lawsuits take time, effort,and a lot of money. It could cost you more than $10,000 to recover less than $10,000.

Third, there is the issue of recovery of the money owed. If the company has trouble paying its taxes, it may well be having trouble paying its other creditors. Winning a lawsuit is small comfort if you can never collect the money.

Of course, if you were compensated as an employee (you received a W-2) then you could have recourse through the Attorney General.

In the future, be sure to have any proposed contracts reviewed by an attorney so that you know what your rights and responsibilities are before you start working.

Re: Company is withholding my paycheck

If you accept the $1,000, you risk losing your rights to go after the other $9,000. However, if you are an independant contractor, and NOT an employee, your only option to try and get those additional funds will be through court. If you were an employee, you should contact the Attorney General's Office and file a complaint.

Re: Company is withholding my paycheck

The reality of your situation is not promising. Assuming you refuse their magnanimous offer, you are left with litigation which can be both time consuming and expensive. Moreover, where you are dealing with a Canadian corporation, it is likely that any judgment you receive would have to be satisfied in Canada (this assumes that your litigation would not have to also be filed in Canada). Did you have an employment contract and/or independent contractor agreement that defined the relationship between your employer and yourself? Were you paid wages from which taxes were deducted or was the payment do you (when they paid) a gross amount with taxes being your responsibility? If you could be considered an employee of this entity, you could attempt to file a complaint with the Attorney General's office seeking recovery for their failure to pay wages. Short of taking the grand, this may be your best. Barry

Re: Company is withholding my paycheck

First if you are an employee and employed here (MA) contact the Attorney General's office.

Second, are you owed salary or commissions? If salary, then they have no grounds even if their allegations are true to withhold pay.

If you are an independent contractor your only alternative to get the $10K is through the courts.

A lawsuit is however a costly undertaking. Contacting the Atty general's Office would be the place to start.