If I’m an independent contractor for various staffing companies and came across a contract that has a clause saying they can withhold my payment if there is a delay in them getting paid by their client, is that legal?
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If I’m an independent contractor for various staffing companies and came across a contract that has a clause saying they can withhold my payment if there is a delay in them getting paid by their client, is that legal?
Asked on October 10, 2015 under Employment Labor Law, Michigan
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
It is legal if you are an independent contractor an independent contractor is not an employee, and is not subject to the protection of labor laws, including guaranties about when they will be paid. Rather, a contractor's rights are governed purely by contract that is, by what the parties agreed to in the contract between them. Therefore, if choose to work for them and sign a contract saying that your payment may be delayed then yes, it may be delayed.
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