Employer Won't Pay Me

[juggsology]

i live in illinois and am freelancing for a previous manager who is out of new york. i also hold a full time job. while there is no written contract between us about having an employer/employee relationship, i have emails from him stating that he would pay me directly (direct deposit even) and that his boss and company he works for has agreed to use me for all work until the end of 2008.

july's invoice was HUGE. i worked many nights into the wee hours of the morning, some with no sleep at all, weekends and some days taken off from my full time job to complete his deadlines etc.

my invoices state that payment is to be rendered within 7 days of receipt of the invoice. he stopped corresponding with me a few days after receiving my invoice. some of the emails i send he does read (proof with a hidden read receipt) and some he doesnt open at all. he will not return voice mails either. i have since brought his employer into the picture, seeing the projects are ultimately paid out by him, and then passed along to me. his employer says he hasnt submitted his own invoice for payment since april. i know he is short on funds to pay this large invoice. i have ruffled his feathers by contacting his boss, but what else could i do seeing he wasnt returning emails and calls? i needed some contact about the invoices. his boss is now the middle man to resolve this issue because he is "too emotional" to even correspond with me. his boss sent both of us an email last thursday saying that this needs to be resolved this weekend. there was no correspondence this weekend, yet again... i did receive one email from him saying that my hours worked are incorrect (invoice is huge), and to correct them. if i insist that they are correct, he misjudged my level of expertise and will hesitate to continue working with me. he requested a daily log of hours with file names worked on, which i did produce (but he hasnt read that yet via the read receipt). basically, he is so overworked himself that he didnt realize how much work was done in july. now because i contacted his boss it made him look bad and the sh!t rolls downhill ya know... i think this is why i am somewhat being accused of forging my hours worked. i have never been treated this unprofessionally before and payment or no payment at risk, i wont work for him anymore. also, i know he knows how valuable i am and cannot be replaced easily. i think its really hard for him to say sorry...

i am not sure that i have a case in court because we have no formal contract written...

how do i get my money paid in full? and how do i not have him notify my full time employer that i was moonlighting? he doesnt know what hours i submitted for my FT job, nor doesnt know my contract w/ them if i can moonlight or not... i am even up for a promotion tomorrow with my FT job...

amount of invoices - july $9,980 and august $1,000. other invoices have been between 2-6K and were paid without a problem. the 6K invoice was only 2 weeks of work too... i cant understand how he could be surprised by julys invoice, when that was a full 4 weeks of work...

i have not given resignation from this freelance work, but will immediately after i receive my money. i also am not stupid enough to still complete work without getting paid, nor has he sent any work for me to complete.

is there a short little letter that i can send that states payment is due immediately? i dont want to perturb him anymore by threatening legal action... i just want my money and even more so since circumstances have come up and i need it now!!!

please help!

fyi: he never stated that he would not pay me, he just said he disagreed with hours worked and also that he always paid me within 7 days as a courtesy.

[aaron]

Are you an employee or an independent contractor?

[juggsology]

independant contractor.

i have since received an email from him that my services are no longer needed.

[aaron]

Well then, I'll move this into the independent contractors forum.

They may want to negotiate a reduction in your fee. If they won't pay at all, or you don't agree with a reduction, you can take them to court. Your invoices and the prior billing and payment history are evidence of your relationship and billing rates.

[juggsology]

is there an appropriate amount of time to be waiting for payment for services? it clearly states on my invoice that payment is to be rendered within 7 days after submittal.

[aaron]

Have they traditionally paid within seven days?

[juggsology]

yes - he has always paid my invoices in 7 days or less. i am even set up for direct deposit with him.

[Mr. Knowitall]

If you want, sue them now. If you are feeling a bit more patient, try to communicate with them about your payment and see if it is forthcoming.

[juggsology]

SENT:
To date, there have been (16) emails sent/received regarding unpaid invoices for July & August 2007 and numerous telephone calls and voice mail messages left inquiring about payment.

The invoice for July 2007 is now (30) days late and the invoice for August 2007 is now (4) days late. These invoices cover services already rendered. The total amount due immediately for both invoices is $10,880.00.

I would rather not pursue legal action, but this is getting out of hand especially with the lack of resolution priority, redundancy of inquiries and unprofessional behavior.

If this is not resolved by payment in full by Friday, September 7, 2007, legal action may be my only option.



Regards
(me)

RESPONSE:
I have received all your emails (16), and have repeatedly told you that the hours you are claiming are way beyond what was actually worked. You refuse to come to reality on the issue and continue to claim that you've worked 247 hours within one month on these projects. These 247 hours are in addition to your regular full-time job. On the Kentucky project you claim you worked 95 hours. That is more than 2 1/2 weeks straight. I can tell you from the email trail I have that you are way off base with these hours.

I have given you an opportunity to correct your hours but you refuse and hold stead fast to your numbers. You've given me no choice but to have to go back through all the emails and create a log of when work was issued and when it was received back. I have every email that was exchanged. That takes time and as you are well aware I am very busy with many projects including Brazil and Lima Peru.

If you choose to take legal action that is your choice but rest assured we will defend ourselves vigorously. Our attorney has indicated that he will have to subpoena your current employer to determine what hours you worked for them versus what you worked for us.

I strongly urge you to review your numbers and revise them to a more reasonable figure so that we can resolve this issue.

QUESTION:
i did put in the mass hours for the month of july. there were many days that month where i either took off of work from my ft job to finish his stuff, and also worked on just a couple hours of sleep and all through the weekend and holiday.
i am not sure what is in my contract for my ft job is i am allowed to moonlight though.
ultimately, if they were to subpeona my ft employer, i would have to do the same to him, including the vendors on whom the design changed for the projects we were working on etc - which would cause massive amounts of embarassment for him and his company. they coudl possible lose a multi billion dollar deal over a measily 11k. is there a similar lein like a mechanics lein for real estate when a general contractor doesnt pay out his subs, the subs have a right to put a lein on the home? this isnt about real estate, but rather subcontractor for a huge company...
i honestly think that he is buying time right now because he doesnt have money to pay because his boss told me that he hasnt been paid (due to lack of his own invoice submittals) since april 2007. but all of this insinuation that i lied about hours etc, is like backstabbing... we had such a great relationship working together before and there has never been a problem before. he is a drama uqeen, but he has never turned on me like this. i have seen him turn on others, including his own boss not returning his calls for weeks when he needed something, but never me.
my sister said that i should reply really quick with something like "does this response mean that you will only pay through litigation?" and play dumb.
i shouldnt have to play lets make a deal with these long hours that i worked. before all of this came about with him not paying me, i was seriously thinking of quitting just because i literally have had zero time with my son that entire month of july! even on the 4th of july - we shot off fireworks for maybe a whole 20 minutes and then i had to come back inside to get back to work for him.
there has also been prior months where it was really intense for only 2 weeks and then no work for 2 weeks. those invoices were almost 6k, and he always paid w/o question. i just think he is mad because i got his boss involved.
do i proceed to stand ground and stick to my guns and file something on monday morning for nonpayment or make a deal?

[juggsology]

still no paycheck!!!!!!!!!!!!!!!!!

i am going to file a complaint with the illinois department of labor, but have a few questions. what exactly is the 'independent contractor exemption'? what does it make you exempt from? exempt from getting help from the IDOL or exempt from getting paid? should i put down employee instead of indie contractor?

below is the last email i have sent to them, with zero response.

xxx,

By you continuing to request me to reduce my invoice, you are asking me to lie and also enter into a "Collective Bargaining Agreement", which I will not entertain under any circumstances, as that does not equate resolution of this issue of nonpayment.

I too have kept every email that was exchanged regarding this business venture and contract for services and welcome you to refresh your memory on the workload for the months of July and August 2007. Likewise, and in regards to subpoenas issued, affiliates of Deutsche Bank, AKF Engineers LLP, Emerson Network Power, Jones Lang LaSalle, Syska Hennessy Group, Business Information Services and others would be required.

Many laws are continuously being broken each day this issue of nonpayment remains unresolved, which is why this matter should be taken very seriously and resolution a priority – see below. I look forward to receiving full and final compensation by Friday, September 7, 2007 via direct deposit to my checking account on file, which will constitute resolution.



Regards,

xxx





(820 ILCS 115/2) (from Ch. 48, par. 39m‑ 2)

Sec. 2. [Payments to separated employees shall be termed "final compensation" and shall be defined as wages, and any other compensation owed the employee by the employer pursuant to an employment contract or agreement between the 2 parties.

As used in this Act, the term "employer" shall include any individual, where wage payments are made directly or indirectly by the agency or business for work undertaken by employees under hire to a third party pursuant to a contract between the business or agency with the third party, or any person or group of persons acting directly or indirectly in the interest of an employer in relation to an employee, for which one or more persons is gainfully employed.]



(820 ILCS 115/3) (from Ch. 48, par. 39m‑ 3)

Sec. 3. [Every employer shall be required to pay every employee all wages earned during the pay period. Wages of professional employees, as defined in the Federal Fair Labor Standards Act of 1939, may be paid once a month. Upon the written request of the employee, the wage shall be paid in a single check representing the wages earned during the period designated by the employee in accordance with Section 4 of this Act.]



(820 ILCS 115/4) (from Ch. 48, par. 39m‑ 4)

Sec. 4. [Wages of professional employees, as defined in the Federal Fair Labor Standards Act of 1938, may be paid on or before 21 calendar days after the period during which they are earned.

Any employee who is absent at the time fixed for payment, or who for any other reason is not paid at that time, shall be paid upon demand at any time within a period of 5 days after the time fixed for payment; and after the expiration of the 5 day period, payment shall be made upon 5 days demand. Payment to the absent employee shall be made by mail if the employee so requests in writing.

All wages and final compensation shall be paid in lawful money of the United States, by check, redeemable upon demand and without discount at a bank or other financial institution readily available to the employee, or by deposit of funds in an account in a bank or other financial institution designated by the employee. No employer may designate a particular financial institution, bank, savings bank, savings and loan, or currency exchange for the exclusive payment or deposit of a check for wages. No financial institution, bank, savings bank, savings and loan, or currency exchange shall refuse to honor a check for wages that exclusively designates, in violation of this Section, a particular bank, savings bank, savings and loan, or currency exchange as the exclusive place of payment or deposit except to the extent the bank, savings bank, savings and loan, or currency exchange is otherwise excused from honoring the check under Section 3 ‑111 of the Uniform Commercial Code because the bank, savings bank, savings and loan, or currency exchange is not the drawee or the maker of the check.]



(820 ILCS 115/5) (from Ch. 48, par. 39m‑ 5)

Sec. 5. [Every employer shall pay the final compensation of separated employees in full, at the time of separation, if possible, but in no case later than the next regularly scheduled payday for such employee. Where such employee requests in writing that his final compensation be paid by check and mailed to him, the employer shall comply with this request.]



(820 ILCS 115/9) (from Ch. 48, par. 39m‑ 9)

Sec. 9. [Except as hereinafter provided, deductions by employers from wages or final compensation are prohibited unless such deductions are (1) required by law; (2) to the benefit of the employee; (3) in response to a valid wage assignment or wage deduction order; (4) made with the express written consent of the employee, given freely at the time the deduction is made]



(820 ILCS 115/13) (from Ch. 48, par. 39m‑ 13)

Sec. 13. [Any officers of a corporation or agents of an employer who knowingly permit such employer to violate the provisions of this Act shall be deemed to be the employers of the employees of the corporation.]



(820 ILCS 115/14) (from Ch. 48, par. 39m‑ 14)

Sec. 14. (a) [Any employer or any agent of an employer, who, being able to pay wages, final compensation, or wage supplements and being under a duty to pay, wilfully refuses to pay as provided in this Act, or falsely denies the amount or validity thereof or that the same is due, with intent to secure for himself or other person any underpayment of such indebtedness or with intent to annoy, harass, oppress, hinder, delay or defraud the person to whom such indebtedness is due, is guilty of a Class C misdemeanor. Each day during which any violation of this Act continues shall constitute a separate and distinct offense.

(b) Any employer who has been ordered by the Director of Labor or the court to pay wages due an employee and who shall fail to do so within 15 days after such order is entered shall be liable to pay a penalty of 1% per calendar day to the employee for each day of delay in paying such wages to the employee up to an amount equal to twice the sum of unpaid wages due the employee.

(c) Any employer, or any agent of an employer, who knowingly discharges or in any other manner knowingly discriminates against any employee because that employee has made a complaint to his employer, or to the Director of Labor or his authorized representative, that he or she has not been paid in accordance with the provisions of this Act, or because that employee has caused to be instituted any proceeding under or related to this Act, or because that employee has testified or is about to testify in an investigation or proceeding under this Act, is guilty, of a Class C misdemeanor.]