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  1. #1
    Join Date
    Oct 2011
    Posts
    4

    Default Late Payment for Services Rendered by Independent Contractor

    My question involves independent contractors in the state of: New Jersey

    I'm an independent contractor with a NJ S-corporation. Back in Jan, 2010, I entered into a contract with a consulting company to do sub-contract IT services for their large financial client. The contract ended on paper on Jan, 2011, but at the time I asked for a rate increase an got it, but didn't have an official written contract for the extension, it was verbal. I continued work for this financial client through the consulting company until Aug 12, 2011. I'm having issues now collecting payment for the last two weeks of service. They are 1 month behind, and according to the consulting company they are awaiting payment from their financial client before paying me. I'm not getting any sort of definitive payment date from the consulting company nor their financial client. The consulting company is giving me no response in terms of of a payment date. And I've tried to reach the financial company's accounts payable department and keep leaving messages but get no responses back. Is there a definitive cut off time when I should expect to escalate this by getting a lawyer, or should I send an official certified letter to the consulting company and financial company? Not sure if I'm being too aggressive, or if I should wait longer?

    Thank You.

  2. #2
    Join Date
    Dec 2009
    Location
    Lake Chapala
    Posts
    3,030

    Default Re: Late Payment for It Services Rendered by Independent Contractor

    In law, there is no "definitive cut off time" for receiving your money. There may be something like this in your contract, but otherwise, such a thing doesn't exist.

    You may sue for your money in small claims court. You don't need an attorney for that.

    Only you can determine whether or not you're being too aggressive. You can wait some more time for your money, but don't wait too long or the SOL will expire. Your local small claims court will tell you what the SOL timeframe is.

  3. #3
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Late Payment for Services Rendered by Independent Contractor

    If you want to hire a lawyer, it is your right to do so. Keep in mind that legal fees accrue quickly.

    It's not even slightly unusual for companies to take weeks or months to pay independent contractors. You had a fast-paying client, which is great, but you seem to be in a rush to escalate things. Are you concerned that the company is failing and may not be able to pay your bill? What does your contract say about when payments are to be made?

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