Owed money from completed work as private contractor

[carla3]

What is the name of your state (only U.S. law)? California

I am a private contractor working for an owner of a financial services business and I completed work for several of his clients. My verbal agreement with the owner of the business was to be paid a percentage of billing for those clients. The owner of the business decided to end the business relationship.
Question 1: How long does the law say he has to pay me for the work I completed and do I have to wait for him to bill the clients (which may take him months) and be paid by them?

The owner also decided to "write off" some of the clients' bills because they were partners of his in another venture (and I know he received compensation on the side).
Question 2: Since I did all of the work for those clients, as directed by the owner, what does the law say the fair pay should be for me even though the business technically shows no income from them?

I have already made the demand for payment and told him that I thought the customary time for timely payment to another firm is 30 days (which now has passed). Any help would be very much appreciated.

[cbg]

Since you are an IC and not an employee, this is not a matter addressed by law but by your contract. If you are not paid within a reasonable time (the law does not state what is a reasonable time) your recourse is small claims court.

[eerelations]

It continues to amaze me how many ICs think they're covered by employment laws...

[carla3]

Originally Posted by cbg

Since you are an IC and not an employee, this is not a matter addressed by law but by your contract. If you are not paid within a reasonable time (the law does not state what is a reasonable time) your recourse is small claims court.

Basically its 2 small companies, financial firms, that were doing work for each other as independent contractors. A normal business practice, but apparenly a pitfall if it goes bad. I guess by what you are saying there is no definition of "reasonable time". Does it seem out of line to file in small claims after 30 days of no payment?

Any idea what would be proper to ask for regarding the bills that were written off by the owner, that I did all of the work on? Hourly rate, what my normal percentage would have been of the going rate, or a flat fee? Thank you.

[pattytx]

The payment time frame should have been addressed in your contract/agreement. Without that, is 30 days reasonable? Probably.

You can ask for anything you want. Whether or not the company is required to provide it, however, should have been defined by the contract. No contract, the company can certainly refuse.

If there was no contract or legally binding agreement, you take your chances. And you learn for the next time.

I'm assuming you aren't questioning whether or not you were properly classified as an IC.

[carla3]

Originally Posted by pattytx

I'm assuming you aren't questioning whether or not you were properly classified as an IC.

Thanks for your reply. No, IC is correct, common in my business when 1 small business helps another short term (like during tax season).

My only other issue when I get to small claims is how to address the "friends" that he discounted his bills for. I was directed to prepare work for those clients and I am entitled to a percentage of the billing per our verbal agreement. So when he decides not to bill the client, I end up getting nothing for my time. He did no work on those clients and I know he ended up getting paid "under the table", but cannot prove it. What is reasonable to ask for in that situation? It boils down to he used my company to prepare work for him and never paid us to do it because he officially never billed the client to which I was entitled a percentage.

[cbg]

No one here can give you numbers. We do not know a fraction of the details we would have to know to even have a clue what is "reasonable".