Post by georgeharrison on Sept 8, 2016 18:08:22 GMT -5
Due to financing at the start up I was working for, I, along with 30% of the company, was laid off last Sept. In Dec, they asked me to do some work for them as an independent contractor. I submit invoices occasionally, not on a set schedule as the work is sporadic. My contract says I will be paid within 30 days.
There have been some delays in payment along the way, but things are getting ridiculous.
I currently have two outstanding invoices. The oldest one was submitted 10 July. I started asking my manager and the finance person for updates a couple weeks ago.
My manager is fired up and trying get a check cut, but the finance person says they don't have the cash flow.
With my manager involved, the finance person contacted her boss (the CEO) to see what could be done. I received an email today saying financing is delayed due to "capitalized restructuring" and that they HOPE to get it sorted out in 3-4 weeks and then they HOPE to be able to pay me.
I know the company is in trouble and maybe it's my fault for agreeing to do this contract work knowing they were having financial difficulties. I'm starting to fear that they are in their final days (my manager has alluded to this and is aggressively job searching), and that I won't ever see this money.
It's not a ton (just over $1k) as I was only working a few hours here and there in addition to my real job, but it is money that I earned and we could use.
Is there anything to be done? Should I just wait and hope that they are able to pay me on the 3-4 weeks that they said they are hoping? What if they do go under before I get paid?
One of my coworkers had a previous job at a startup that went under. The second-to-last paycheck was way late. The last paycheck -- the one the day the company truly fell apart -- was on time, minus what looked like a wire transfer fee. But these were paychecks and not independent contractor payments.
On the other hand, there was a big long story of a scammy startup where no one was paid for the last month or two of work.
I would start by contacting your state's Department of Labor (or Labor & Industries or whatever it's called in your state).
Your could ask for instalments, $x now and the rest due in 30 days.
I wouldn't do any further work for them until they are paid up.
DH worked for a shit company and the smart contractor started making them pay up front and when that ran out they had to pay more for her to work more. She was the only one not out money when they finally went under.
I've been the person on the other end of these phone calls and it sucks. I was at a company that was not doing well, yet I still had to use freelancers. And then finance wouldn't pay them.
I've been the person on the other end of these phone calls and it sucks. I was at a company that was not doing well, yet I still had to use freelancers. And then finance wouldn't pay them.
I have no advice, I'm sorry
Yes I've been here too. And sometimes I don't have the capital to pay my freelancers until I get paid.
It sucks all around.
My advice, don't do any work until a percentage you feel comfortable with is paid. That can be 100% or whatever works for you
Be the squeaky wheel and keep on it. In my opinion there is no "hope" to pay you it's a they will pay you. I was stiffed a final paycheck from an old boss who went under, he was a friend of H's and thought I was ok to take advantage of so he payed everyone else their finals and not me. So to this day I tell people to fight for it and don't stop until you get it.
If you are a contractor, I don't think DOL can help you. Unless you were incorrectly classified as such based on the job duties.
Does your contract allow for interest to be charged? If so make sure you are invoicing that interest charge as well as reminder invoices. I think after that the only recourse is to send to a collection agent or sue them.
If you have a contract, can't you take them to small claims court for $1K ? With a court order, you may have options to enforce the payment.
I looked up the small claims process and it says that all they do is issue a judgement, but they don't do anything to help collect. This won't help me, because they are not disputing that they owe me the money. They are just saying they don't have it to pay. Dang it.
I'm not a lawyer, but I'd probably consult with one.
I'd look up lien laws in your state. For my company we do independent contracting and if someone doesn't pay our invoice after 6 months we will file a lien against their building/property. Usually we send one final collection attempt which is a nasty letter from a lawyer that basically says if you don't pay us by X date we will lien you. It's very easy to file a lien here but you have to do it within 1 year of the invoice date. Liening the building usually helps with companies that are going broke, they can't sell their building and get cash with a lien on it therefore they pay you.
Keep bugging them and hope you get paid. If you do get paid any of it, check your states "preference payment" laws to see how long there might be a clawback if they file bankruptcy. Don't spend the money until that time period passes in case a court makes you pay it back.
If you can file a lien, do so. That may put you ahead of unsecured creditors when this company files bankruptcy. When they file, make sure you put in your claim (whether you have a lien or not).