I was hired by one IT firm as a Consultant. I worked for their client as a contractor for one month. But because of economy this client laid off bunch of people and I was one of them. After that I was supposed to get paid from this IT firm but they said their pay period is one from that day. So I waited on month and still they did not pay me and told me that they will keep my wages as a security deposit till I join their next project. But becajse of job market they could not find me any project for 5- 6 months. So I tried to ask them for my wages repeatedly but they always tried to get away by saying something. So I got fed up with their attitude of not paying. And I told them that if they don't pay me my wages I will report it to Department of Labor. In response to that their attorney sent me letter saying I voluntarily quit their company before the contract between me and that company ended. So I have to pay them $25000 . But I never quit their company... its them who did not pay me for what I worked for and its them who could not find me project. So what are my rights in this situattion. How can I get my wages and how should I handle this situation. Can I simply report it to Department of Labor or should get hold of some attorney??

How can I get my wages and how should I handle this situation. Can I simply report it to Department of Labor or should get hold of some attorney???Hello sanu:

Neither. Just sue them in small claims court. It's quick, cheap and easy.

I wouldn't worry about the letter. Worry if they countersue.

excon

Take your contract and a summary of the situation to the department of labor in your state and file a wage claim immediately. Also put together any and all emails and other correspondences, time sheets, etc. between you, the company and their "attorney". Send them a letter (something with a delivery or signature confirmation tracking number) stating that they have no grounds to withhold your pay or prevent you from seeking other gainful employment since it was their initial responsibility to find you work. Since they couldn't, and if they are not paying you to "sit on the bench", you are technically "laid off" and don't owe them a dime. They can also be penalized by the state labor department for the amount of time they are late in paying you. Also check with your Departmet of State or Revenue Dept. to make sure their corporate charter is not revoked or in bad standing. All of this information will give you leverage with them. For them to prove you "quit", they need something in writing from you-but they still have to pay you what they owe you. Also check with the state dept. of unemployment to make sure they report your wages no later than 30 days after the end of the quarter in which you worked for them, as well. You can include the IRS in this, as well. In all likelihood, this company has done this to ither people and needs to be investigated.

There is no statute of limitations on colecting unpaid wages.