Legal Question in Business Law in Mississippi

Not paid for services rendered

I am owed $25,000 from a state job. I was a sub contractor for a contractor that was hired for construction managment. I was the inspector at the site. He was paid $35 an hour and I got $17.50 of that an hour. Money was paid as received in phases from the state of MS. Last check received was September 2002. I have only been paid $9133.00 to date. FEB thru SEP02 is still owed. He received monies and apparently spent it. What are my options and what should I report to the IRS? The $35,000 which includes the owed $25,000 or the $9,000 that was actually paid. As far as I know he's still in business and not filed bankruptcy, nor does he answer any calls or faxes from me.


Asked on 2/14/03, 4:59 pm

1 Answer from Attorneys
Nick Pizzolatto, Jr. Pizzolatto Law Office

Re: Not paid for services rendered

I assume the employer is in LA even though the work was in MS. You should claim on taxes only the money you received. If you get more this year then you claim it this year. With only the bare facts you furnished, there are several ways this can play out. One is after formal notice of demand and failure to pay, a court can order the payment of the amount owed, plus costs and attorney fee. In addition, if the court decides that the failure to pay was arbitrary and w/o just cause, then he will award penalties of one day's wage for each day after demand that you were not paid the wages, up to a max of 90 days. Generally wages cannot be discharged in bankruptcy. Also generally speaking, you have 3 years to make a claim for unpaid wages, but waiting is dangerous because of lost records and such, and since you only get a max of 90 days penalty wages, there is no need to wait. See a lawyer.

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Answered on 2/15/03, 3:52 am


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