small claims court the next step?

[broadway]

I worked contract this summer until August 27.
I was paid for that day's work, but not the previous week.


My one-page contract stated I was to be paid every week.


It now is 60+ days, and I am still owed $1300+ for one week's work.


The employees there are still getting paid, but they are working "short" hours. I have no idea how reduced the "short" hours are.



I was told via email I would be paid the first week of November. This was back on October 8. I have no idea whether that means that is when I will receive the check or when it will be mailed out. Stupid me did not press for more precise dates.


I sent an email this Monday asking for an update, and it has been radio silence. I also left voicemails today Friday but there may not be anyone in the office due to the "short" hours.



This client was in Pennsylvania. I am in NJ.


I am contemplating filing in small claims court in PA. It will cost me about $140. The court tells me it is 60-days before the case will come up.


Should I file now or wait?
If I wait, how much longer do I wait?

 

[tfudtuckerpucker]

I suggest going this route if possible.
https://www.dli.pa.gov/Individuals/Labor-Management-Relations/llc/Pages/Wage-Payment.aspx
The state should back you on payment of wages.

 

[broadway]

Thank you.
Very interesting page.


I was not an employee.


I worked 1099.

 

[Red Badger]

Sorry for your situation. Small Claims court is certainly an option, but even if you win, you might still find yourself chasing unicorns. Best wishes getting compensated, but keep expectations low.

 

[njhowie]

If they said first week of November, you'd certainly (in my mind) need to give it until Nov 7. When they said first week of November, they may not have been looking at the calendar and just meant first week, as in first 7 days.

In any case, you need to decide if the money/time/effort will be worth going to small claims court. You could win a judgment and they could just continue to ignore you - then what?

Was this computer/consulting work that you did for the client? What I'm getting at, is your background in software development? If it were me, and the client stiffed me like that, I would instead take the $140 in court costs, and purchase the domain {Customer}Sucks.com or some variant, post a copy of your contract, a history of what's taken place including a copy of the email they sent to you saying you'd be paid first week of November, etc. I'd then reference the site all around the net so google picks it up, I'd post it in online forums where they advertise for consultants, I'd make a posting on Glassdoor, LinkedIn, and so on.

When they ultimately come to you begging you to take it down and they'll pay you, you then advise them that they may purchase the domain from you if they like for $10,000.

 

[broadway]

They've got enough money to be paying the 7 people on their staff.


My mother used small claims court once for a renter who skipped. She was able to garnish his wages.


How does small claims court force this company to pay me?



I'd even be happy if they split the money into smaller chunks to indicate good faith.


If I don't hear from them by November 9, I will certainly post on Glassdoor.com and on the forum where they advertised for people.




.

 

[gauss]

In any case, you need to decide if the money/time/effort will be worth going to small claims court. You could win a judgment and they could just continue to ignore you - then what?

General remedies that I am vaguely aware of include:
- Garnishment of wages.
- Liens on assets (ie real estate)
- attach bank accounts

Is the client incorporated?

-gauss

 

[njhowie]

General remedies that I am vaguely aware of include:
- Garnishment of wages.
- Liens on assets (ie real estate)
- attach bank accounts

Is the client incorporated?

-gauss

I'd guess that these potential options will likely require more time/effort/money to get done, even with judgment in hand.

 

[broadway]

General remedies that I am vaguely aware of include:
- Garnishment of wages.
- Liens on assets (ie real estate)
- attach bank accounts

Is the client incorporated?

-gauss

Yes.


Do I need a lawyer to attach bank accounts?

 

[Lakewood90712]

" This client was in Pennsylvania. I am in NJ "

Where is the company you have a contract with registered in business ? Where was the contract executed ? Does the contract specify under what jurisdiction (State / county) legal claims must be adjudicated ?

Better to wait till November runs out. After that send a certified letter, return receipt to the owner, or an, officer if incorporated or an LLC, with demand to be paid. You would need this anyway in small claims.

My guess is you will spend over 40 hours and several hundred dollars attempting to get a judgement and collect in court.

In some states, getting a writ to collect is a separate court , and collecting is much more difficult than getting a judgement.

Sorry

If you plan to sue in court , skip the negative postings on social media IMHO.

PS , check my signature for my qualifications.

 

[broadway]

So, most seem to be saying this will be a waste of my time and money.
$140 to start not to mention the tolls and tax which is another $20 to go to PA to file.


Maybe this is what they are counting on?

 

[Ready]

I think you need to slow down. It's only November 2. Just be persistent in sending them follow up emails and phone calls. They may be having cash flow problems which means they are only paying the vendors that squawk the most, so you need the be the squeaky wheel now.

 

[Lakewood90712]

If the labor dept has jurisdiction on your 1099 work , then they will do things administratively , great , you don't need to do anything else. However if not and you still want to pursue :

Time to research

Time, travel and $$$ to prep and file

$$ to have the lawsuit served ( many jurisdictions do not allow a party to the case to serve papers)

Time and Travel to court , and maybe a second trip if defendant requests postponement.

$$$$$Having to hire an atty to defend yourself if the defendant files an answer and cross complaint in regular court .

Trying to collect, assuming you win.

If you have time on your hands and want to invest that time learning how things really work out in the legal system, not theory , it may be worth the effort just for the knowledge.

 

[Texas Proud]

Not sure how it works now, but awhile back when my BIL was in small claims if you won you got your filing fee etc.


Also, and this was decades ago, when my dad won in court he could pay to send out a sheriff to confiscate their assets... that usually got them to pay pretty quickly...


I would also read up on if you can sue in your state and if so what remedies you have in another state...





Last point for me... just because you are 1099 does not mean it cannot go through the labor board or whatever state agency there is... they might do it unless there is a clear contract between you and the company...

 

[broadway]

I think you need to slow down. It's only November 2. Just be persistent in sending them follow up emails and phone calls. They may be having cash flow problems which means they are only paying the vendors that squawk the most, so you need the be the squeaky wheel now.

How persistent is persistent? I am having problem with that.

Monday 10/26 email to finance guy; cc'd CEO
Friday 11/2 voicemails to both finance guy and CEO; finance apparently took vacation all week except Wednesday; CEO is sick and may not have been in the office

I will send email again on Tuesday 11/6 giving them Monday to respond.

Then what?
call every day?
email every day?

At what point is it considered pointless and go with small claims court?
.

 

[Winemaker]

I don't think a small claims court in PA will have jurisdiction in NJ. If you get a judgement, and it is not paid, then you would have to put a judgement lien on some real assets and it would have to be recorded at the local county, and you would only get paid when it was sold. The whole process could cost more than $1300, and might take a while for that asset to be sold. And that is if they owned anything. They may rent their office space, and lease the office furniture, and the bank may own their company cars.

 

[broadway]

The company still has money in its bank account(s); otherwise the 7 people wouldn't be getting paid.

The company receives residuals because it sold "something" to another company.

The company is in PA, and I will be filing in PA if I decide to do that.
I live in NJ.

.

 

[Lakewood90712]

From your info , the company is incorporated in PA ?

1. Get the corporation info from the secretary of state where they are incorporated and doing business. You must file against the exact corporate entity that you have a contract with.

2. Start researching the uniform commercial code , specifically as adopted by that state . this is assuming this is a contract issue, not a labor issue. Look for your Cause of Action ( why you are damaged ) . The court clerk can give you help filling out forms, however, cannot draft your complaint. You must do that yourself.

There is probably " Small claims for dummies" or similar book.

When you go to file, see if you can sit in the audience of some small claims trials.

 

[Brat]

Just because you were paid as an independent contractor doesn't mean that you are, legally, an independent contractor. Wait until the 10th and if you are not paid call your local State wage collection board, ask them what they can do for you.

Do not do any more work for them until you are paid.

 

[bmcgonig]

How persistent is persistent? I am having problem with that.

Monday 10/26 email to finance guy; cc'd CEO
Friday 11/2 voicemails to both finance guy and CEO; finance apparently took vacation all week except Wednesday; CEO is sick and may not have been in the office

I will send email again on Tuesday 11/6 giving them Monday to respond.

Then what?
call every day?
email every day?

At what point is it considered pointless and go with small claims court?
.

I think Ready is correct. They're just managing cash flow. Just keep calling every day or emailing every day or both. Little work in that. I'll bet they will pay you before the end of the month. The small claims is still an option then.

 

[brucethebroker]

So, most seem to be saying this will be a waste of my time and money.
$140 to start not to mention the tolls and tax which is another $20 to go to PA to file.

Yep, but look at it from an emotional point of view. Will you "feel" better getting this off your chest (court date). Will you feel better knowing that, even if you never see a penny, THEY have been inconvenienced and put on notice that not everyone will roll over and play dead if cheated.

We recently had a renter stiff us on back rent and abandoned personal property left in the house. It cost money and took time to go to small claims court and the follow up court for a judgement collection. Tenant than filed bankruptcy. We will never see a cent, but that is not the point. Tenant was forced into paying a bankruptcy attorney and having his credit trashed. There were consequences for perhaps the first time in his life. THAT is my satisfaction. Losing rent and paying legal fees are just a cost of doing business.

In your case, make them pay one way or another. Lost fees are a cost of being self employed (trust me, I know). Just don't let them get away with it.

I agree that you need to wait a couple of weeks.

 

[frank]

I once had a company my son worked for and did not pay him. I called the states attorney 's office and filed a complaint. that took care of the problem. although my son and the company he worked for were in one state. it took some time, but no fees involved.

 

[mystang52]

I am not a lawyer. You may want to check to see if, because you are a NJ resident, you can file a small claims action in NJ. That would put the burden on them, if such action is permitted.
If not already done, I'd send email, now, delineating the time frames from when you started working, previous replies to your inquiries, and of course the promise of a check by first week of November. Then, follow up on November 8 presuming no check is received.

I'm skeptical you will voluntarily get a check from them. This is money they owe you yet they seem cavalier about paying. Notwithstanding you were a 1099, you may also get some extra help by contacting Pennsylvania's Labor Department. Failing to pay workers (maybe 1099 as well) is obviously a big no-no.

 

[Bamaman]

When someone goes to Small Claims Court or higher courts, they first file the suit.
Then the defendant has to be served a summons to come to court on a specific time/date.

If they don't show up for court, a default judgement will be issued. Or if you beat them in court, the default judgement will be issued.
THEN, you would demand payment. If the defendant refuses to comply, you have got to then do a search for assets that can be attached. This is where the legal process breaks down, as most people and companies don't have the resources needed to identify and collect on the judgement.
To petition a bank for cash, you would need to know their bank's name, address and account numbers. You could also drop a second mortgage on real estate. Or you would need to figure out any assets they own that could be attached--and physically picked up by the Sheriff. Only with specifics can you get the Sheriff to take action. And getting the Sheriff to take possession is often like pulling teeth.

And in most cases, small claims just are not worth the efforts expended.

 

[imoldernu]

Am watching this thread as, in a way, it parallels my own situation with what has become a legal problem with my TV service overbilling for new services I never ordered. Here on ER in a different thread.
So far, extensive letters to BBB, Attorney General, CEO of the corporation and to the FCC.
Will post back with results. Only $600, but for us that's not just small change.