Legal Question in Business Law in Massachusetts
work completed customer won't pay
my friend completed work in the amount of $2000. The customer does not want to pay. My friend does not have work authorization and the customer knew this. Is there any recourse even though he doesn't have work authorization?
3 Answers from Attorneys
Re: work completed customer won't pay
This presents some problems, in that your friend really shouldn't be working without authorization, and the customer shouldn't hire your friend if he knows he isn't authorized to work.
Both your friend and the customer have exposure here, and arguably the work status of your friend does not matter in terms of collecting what is due. However, federal laws have changed, so I'm not certain whether there might be a federal law and or court decision which might bar recovery. If the customer was a business, an unfair trade practice (93A) action might be possible, but again, there is risk that the status of your friend might be passed on to ICE, with negative consequences for your friend.
Re: work completed customer won't pay
your friend can sue under the theory of quantum meruit, basically the value of services rendered and detrimental reliance. He did the work based on the promise to pay.
It is a small claims matter.
Re: work completed customer won't pay
Two possible problems here: the first is that there is a defense available in contract law where the contract is for an illegal purpose, which is possibly implicated by the customer knowing that the performance by the contractor violates US labor laws. The second is that the contractor can find himself facing scrutiny and possible deportation if his immigration law status is brought to the attention of the INS/ICE by some officious court clerk or an annoyed judge. If not truly an independent contractor relationship, the "employer" might be subject to liability under federal laws prohibiting employment of aliens without proper work authorization. Thus, everyone probably has incentive to get this settled quietly.
Best wishes,
LDWG