I’m an independent contractor and haven’t been paid for a month. The company says they don’t know when we will get paid because of financial problems. The company is not communicating effectively with us. Is it a breach of contract to not pay as specified

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I’m an independent contractor and haven’t been paid for a month. The company says they don’t know when we will get paid because of financial problems. The company is not communicating effectively with us. Is it a breach of contract to not pay as specified

I’m an independent contractor and haven’t been paid for a month. The company says
they don’t know when we will get paid because of financial problems. The company
is not communicating effectively with us. Is it a breach of contract to not pay
as specified in contract? Some ICs in the company are getting paid. The company
couldn’t give an explanation as to why some people are getting paid and some have
not yet. Any information you can give will be greatly appreciated.

Asked on April 9, 2018 under Employment Labor Law, Alabama

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

1) Yes, it is a breach of contract to not pay as set out in the contract.
2) Their financial problems are NOT a defense to their obligation to pay you, and is not legal grounds to not pay.
3) Your recourse is to sue the company for "breach of contract" for the money they owe you. If they are facing financial difficulty, sue them NOW, before they close, become insolvent, go bankrupt, etc.


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