Hi I hired an independent consultant just three weeks ago for a Business Development Position in my company. We are an IT consulting & Staffing firm. The person who was working remotely full time and report to me on phone with some updates on a daily basis. He received his first pay check in 2 weeks and after which we felt he was also working for another company or the business leads he was bringing was not genuine and fabricated some leads that he sent to us. He failed to report with the exact client information and his daily activities via email. We are holding his full & final settlement for 7 days because we strongly believe that he was not able to shows us any report regarding his work. I would like to get some advise on the same as how to proceed with this if he files a case against us.
Thanks
I suggest you consult your firm's attorney.
If he is an independent contractor, he will be unable to file a wage claim.
He can file a small claims lawsuit.
If he lives in a state outside of yours (NJ), I wouldn't worry too much about a small claims case.
If he wants to pursue small claims against your firm, he'd have to travel to NJ.
If he lives in NJ, he'd have to file the small claims lawsuit in your county, not his.
Read this, as it explains small claims in your state:
NJ small claims in general:
http://www.judiciary.state.nj.us/prose/10290_small_claims.pdf
Bergen County small claims:
http://www.judiciary.state.nj.us/bergen/civil.htm
If you ever encounter this in the future, its best just to terminate your business relationship. Don't summarily withhold monies owed.
You didn't need to wait or even explain, if the person was a contractor; and in most cases you don't need to do that with an employee, absent an employment contract to the contrary.
