Legal Question in Employment Law in Massachusetts
Withholding pay?
I am a freelance filmmaker. I recently took a gig in which one rate was agreed to at the beginning- at the end of work, the employers offered me an increased rate (5x the original) because they were impressed with my work. I have received the initial rate but they are now refusing to honor their agreement to pay me the increased rate. Can I hold them liable for the increased rate even though it was offered after work was completed? I have emails in which the amounts are discussed and they never deny the increased pay, they simply refuse to cover it because I had to be insistent to even get the original amount.
It turns out that there are others complaining publicly about their lack of payment, and I reached out to those folks- but the employers were offended by the others' behavior (with good reason) so I offered their contact info to the employers as an added incentive to complete my payment. This resulted in the employers stating they would refuse to pay me the increased rate.
I am considering a small claims case for the remainder, but I am unsure if they can be held liable for the entire amount because it wasn't negotiated prior to the job, but offered after completion.
Thanks in advance for any advice!
2 Answers from Attorneys
Re: Withholding pay?
A contract or agreement requires some form of consideration in order to make it binding on the parties.
Here, you were promised X amount of money to perform a task. After the task was performed, you were promised an additional sum. The question will be whether there was sufficient consideration to support the promise of more money, even though the job had already been completed. This is entirely fact specific.
Based on the amount of money at issue, you might want to speak with an attorney. Additionally, the other party may have run afoul of Massachusetts Unfair and Deceptive Business Act or Practices law.
Re: Withholding pay?
I agree with the previous analysis entirely. A few things to add. When looking for additional consideration to support the promised fee hike, you are looking for something you did/gave/gave-up, etc., in return for their promised hike. If there is some identifiable, provable quid pro quo, it could be legally enforceable as a modified or additional contract.
Barring an actual contract, you might also have some equitable claims to recover the promised increase.
Your leverage here would be the attendant claims under the consumer protection statute, as previously mentioned. While uncommon and difficult to obtain, recovery of your attorneys' fees and multiple damages (double or triple) from the defendant are both available if you prove the statute was violated intentionally, egregiously, due to an ulterior motive or design, or was motivated by malice, extortion or revenge.
The risk to the company of this kind of potential liability under the statute, and the stigma it often carries, can often prove very valuable, significant negotiation leverage in settlement of the claims.
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