What to do if I work as an independent contractor for a professional who bills my time out hourly but my time sheet says one thing and his invoices say another?

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What to do if I work as an independent contractor for a professional who bills my time out hourly but my time sheet says one thing and his invoices say another?

I recently looked at his client invoices that he normally keeps out of my sight and discovered he is overbilling clients for my time by a considerable amount. The boss is a jerk but it’s hard for me to quit immediately. Can I be held liable for possessing this knowledge and doing nothing? What should I do?

Asked on September 22, 2015 under Employment Labor Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

There is nothing criminal or even "civilly illegal" i.e. grounds for a lawsuit by a client in what you describe it is very common for companies to bill out their staff or contractors to their clients for more than they pay the staff or contractors that's one way the company makes its money, and there is no civil or criminal liability for doing so. Furthermore, even if there were some wrongdoing, merely possessing knowledge of another's wrongdoing, without aiding them in it, does not make one liable, either criminally or civilly. 


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