My husband is a independent contractor and did a job for this company over 2 months ago. Now they say that they can't pay us untill we provide insurance info. Which we did and now they say it has to be workers compensation, not liability which is what we have. Can they do that even though they didn't request this info prior to doing the work, and only bring it up when its time to pay?
2007-02-27 06:30:10 · 4 answers · asked by Eliezer N 1 in Business & Finance ➔ Small Business
They can't issue requirements after the fact. They have to tell you before you do the work. If they didn't verify that you have the proper insurance, they did something wrong, not you. Like the other guy said, file a lien. This is their problem not yours other than the fact they aren't paying you.
2007-02-28 17:06:14 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Depending on the state, in VA if you have 2 or more employes usually you have to have insurance. You can have daylabors (you used them as needed), which usually these people are consider self employed. The fact that you don't have WC insurance it should not and be and issue. Do you have a contract? You can sue this people for breach of contract. YOu should call the worker's compensation commission for you state and check to be sure. Don't tell them who you are, just get the info.
2007-02-27 18:14:48 · answer #2 · answered by MARBELLA 1 · 0⤊ 0⤋
In most states yes the company can withhold payment until a COI is received. (Certificate of Insurance). Also they can keep an amount based on what their own insurance company charges them for sub contracting workers who do not carry Workers Comp, even though in some states workers comp is not a requirement based on individual situation. Most likely this company will not refuse the entire amount owed, if they do than there is probably more going on than you realize. You may need some deeper help. Just let me know.
2007-02-27 15:23:22 · answer #3 · answered by used2bpale 2 · 0⤊ 0⤋
As a contractor, I have come across this very issue in the past. The company needs your W/C insurance info for their yearly audit by their Ins. Co. If they don't have it, they will have to pay to cover you as an employee, even though you are an independent.
the best thing for you to do is, provide another copy of your insurance documentation, and file a mechanic's or material man's lien against the property.
Here in Florida, the material man's lien carries more weight in court. Labor is much easier for them to arbitrate down than is material.
2007-02-27 14:57:26 · answer #4 · answered by thomy8s 4 · 0⤊ 0⤋