My question involves business law in the state of: Ohio
I own a Lawncare business but I have knowledge in all aspects of construction but do not do it on a daily basis. One of my employees had his house hit by a tornado. As an act of kindness I offered my assistance to help them rebuild. I put some basic quotes together for them and they paid the quoted prices. I started work on the house and he helped me for the first 2 months. One day he came to me and asked when he was going to recieve his wages for working on his house. After an argument I agreed to pay the wages to resolve the current situation although I do not believe he should have recieved the wages for his own house repair. That ate $3,726 out of the money they paid but was not included in my quotes.
Now all work is complete except the interior of the garage. I am currently at a loss of -$4629.57 (over what they have paid) and still need over $2,000 in materials and another $2,000 in Labor. My employee and his wife are demanding that I complete the project out of my own pocket or get sued. What can I do or have I basically caused a disater for myself?