In difficult economic times, many employers find it difficult to make ends meet. They might find themselves needing to cut the pay of employees or, in some cases, they fail to pay non-employee workers and service providers, like freelancers and independent contractors.
Employees and contract workers have the right to expect to get paid, and it’s difficult to know what to do when your paycheck doesn’t arrive.
Employee or Contract Worker?
Employees and contract workers (independent contractors) (including freelancers and at-home contractors) have different pay situations and legal protection for non-payment.
- Employees receive payment on an hourly or salaried basis and are under the control of the employer.
- Contract workers work independently, often have contracts, and are paid by the hour or project.
Why Companies Don’t Always Pay
It may seem obvious, but it’s worth noting that two main reasons exist for businesses not paying:
- In the case