Can a contractor not pay a sub-contractor because the contractor is waiting for payment from their client?
Question Details:
I work for a wrecker service on comission. I received two checks since I started 10/09/09 working 12 hours a day; average over 50 calls per week. My checks have been -$100 and -$50 which if I were paid for all of my calls I wouldn't have been negative. How is that possible at the end of a pay period I owe the company? I have over 40 calls that have not been paid to me. If you add 40 calls at $40 at least per call that is $1600 that is owed to me. I have asked for my paperwork he refuses to give it me. So it's like I am working for free. What can I do about this?
Employment and Labor Law Answers
If the agreement under which you work with the employer states that they will only pay you when and if they are paid, then it is legal. That is the less common way to do commissions, but there is nothing wrong with it--I do that myself with my sales representatives, for a small publishing company I have. The key is though, that's in the contract or agreement under which they worked--they agreed to it up front.
In the absence of an agreement like that, a contractor or employer owes its subcontractors or representatives money for and when the subcontractor or representative does the work. If the contractor or employer is not paid, they can sue the client/customer; but they still have to pay the person who did the work.
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