Can the contractor I sub work from not pay me and hire my employees?

I subcontracted a home remodel from another contractor. After the first installment and 6 weeks of work, they refused to pay me and instead hired the men I had employed.

Asked on September 25, 2017 under Business Law, Missouri


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

1) They must pay you for all work you did--they are contractually obligated to pay, whether the agreement was in writing or oral (though written agreements are always better, since they are easier to prove), if you did the work; you doing the work (fulfilling your obligations) then requires them to fulfill their obligations (pay) under the agreement. You can sue them for "breach of contract" for the money if they will not pay.
2) However, if you did not have some non-solicitation clause in this or another agreement with them, they could look to hire your workers: in the absence of a contractual agreement to not hire another's employees, anyone may do this.

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