Hello Respected everyone,

There's a dear friend of mine, Who wroked for a company for two months and he was given a "Verbal Contract" to pay him for his work. But the person who hired him Now saying "you owe nothing" But they still using the work that he has done for them. So he is thinking to sue them for Not paying him and using his work ! Can he sue them? If yes, what actions should he take against them? Please help. Thanks for reading.

A "verbal contract" is he said/she said. There must be a witness who heard them say they would pay him. Can he sue? Sure. Will he win? Who knows.

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Originally Posted by ma0641

A "verbal contract" is he said/she said. There must be a witness who heard them say they would pay him. Can he sue? Sure. Will he win? Who knows.

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He has the Proof that his work is being used by that company that he worked for and did not get pay ! So, he can sue. But is there any other option he can do to get his money?

If he had a verbal contact, he was a worker for that company. He was part of it. Did he work from home? What was the agreement on pay?
But yes, he sues them, presents his proof and hopes for the best.

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Originally Posted by natasha stuart

... So, he can sue. But is there any other option he can do to get his money?

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You didn't indicate the state or country in which this employment happened. But if it is in the US, some state departments of labor might institute a case in his behalf. Also, he might report them to the state's revenue agency, which might want to see if he is properly reporting and paying employment taxes.

Also, if he must sue himself, some states have penalty provisions for failure to pay wages on time. Thus, in addition to the wages that he is due, he might be able to recover a statutory penalty. This might make it worthwhile for an attorney to take his case.

If this is the US, he might be able to use the warning that he will turn the employer in to the IRS for failure to treat your friend as an employee instead of contractor. The IRS has strict rules for that, and a lot of employers get around it, because it saves them money.

Did he work on the employer's premises most of the time he was doing the work? If so, they are in big trouble, just for starters.
(He was a fool for doing a verbal agreement, of course.)

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Originally Posted by joypulv

... He was a fool for doing a verbal agreement, of course.

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Not really (again, assuming it's in the US). I would say it is probably unusual to ask for a written contract of employment. But the employer should have asked that he fill-out an IRS W-4 form. If one isn't requested, that's a tip-off that something is wrong.

But this has a high probability of NOT being 'employment' but 'contract work.' No W4.

If I asked a friend to help paint my house, and they did (and could prove it), and promised them (verbally, of course) that I would pay them $50 (for example) and they have no witnesses, I could pay them nothing and say that they either helped for the experience, or the exposure, or because they liked me.

Could my friend sue me? Sure. But they'd have to PROVE that they were promised something other than the chance to do the work.

I worked as a contractor for several years, and I never EVER started a project without a contract.

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Originally Posted by Synnen

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I worked as a contractor for several years, and I never EVER started a project without a contract.

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Very well, but OP (by using the term "salary" in the title) suggested that this is a wage-paying job. In other words, W-2 employment, not a 1099-type contract.

We need OP to clarify.

Looking back through old posts, she is in India. I have a feeling that her friend is too.

Thanks all for your time. No, my friend is from the USA.

No, My friend is from The USA. Thanks for your Time. :)