Can a business change contract terms after service has been given?

[justmakeup]

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

I was hired as an independent contractor by an agency for October 8, 2009. I signed all the contractor forms, filled out a W9, and did the job. I just got an email YESTERDAY (11-19-09) saying that they are not recognizing me as an independent contractor due to the IRS guidelines (which I definitely fall under - I have been working as one for 12 years) and are sending me to a payroll company. I feel they are jerking me around. This company had given me a 50 day promise for payment. I should be paid by the 29th of this month. And I executed the work as an independent contractor. Is this legal for them to change the terms over a MONTH AFTER the service was given?

 

[CraigFL]

I'll be waiting to see what the legal experts say....

But, in my opinion, if the job you did really is defined as employee work, the contract you signed wouldn't be valid. This means that they would probably pay you the same amount but would need to withhold money for taxes, etc from your payment. Even if that's true, they should have to pay you reasonably quicky or you could file a complaint with the DOL. The key will be if THEY made the decision because of benefits to them(possibly not wanting a legal challenge on this) or this was an actual legal ruling. If it's the latter, you may have no recourse.

And, just because you worked as contract labor in the past doesn't make a difference because it is the job you are doing that decides if you can be called a contractor. These are government rules to keep employers from bypassing other lawssuch as workers comp insurance.