Legal Question in Employment Law in Arizona

Last Winter I worked in Arizona as an independent contractor hired by a food company from Pennsylvania. This company has contracts with Sam's Club and Costco and does road shows inside of their locations. I was one of the contractors working these road shows. My written contract states that I am to be paid within 5 days of the Client (costco, sams, etc) paying the vendor (who contracted me). These clients pay in 14 days (I have proof) and the vendor has outstanding monies owed to me as far back as 90 days.

What are my options for recouping my funds, damages for breach of contract, fraud, etc. Are Costco and Sam's liable because they allow these vendors to continue to sell in their stores?


Asked on 4/01/11, 4:35 pm

1 Answer from Attorneys

Donald W. Hudspeth The Law Offices of Donald W. Hudspeth, P.C.

Too many facts to give definite answer. Here, are my general comments & questions re issues for now:

1. In Arizona not independent contractor (regardless what contract says) unless you have other clients -that is you have your own business like a plumber or a lawyer. Do you have your own business? If not you can set off a "nuclear bomb" on your employer.

2. Obvious a breach of contract. If the amount is under $2500 you can sue self in Justice court (Justice of the Peace nearest Defendant) and no attorney will be allowed (Small Claims Court). (They furnish form and filing fee is about $50. and can service by certified mail.)

3. If more than $2,500 but under $10,000 you can still sue by yourself in Justice Court but co can hire lawyer and rules of procedure and evidence will apply. This can be a killer but (A) lawyer fees may cost co more than claim, so incentive is for them to settle and (B) we can advise you behind scenes and (C) some AZ Justice court will grant attorneys fees to you even tho law firm not appear but only advise.

4. Need to be careful about notifying Costco and Sam's but I think they would want to know. Superior Court cases (if more than $10,000) are public record so disclosure of suit and claims would happen anyway - not true of Justice court cases. If contact, stick to facts, what you can prove -no "bad mouthing, etc."

Overall, the nuisance value of your claim may get it paid. and if you are really an employee (not a contractor) because no other clients -do not have own fed employer id #, etc. then your claim will be for triple damages under AZ law, not to mention 941 payroll taxes not paid which is complaint to AZ Industrial Commission and/or IRS.

Good luck.

Law Offices of Donald W. Hudspeth, P.C.

3030 North Central Avenue, Suite 604

Phoenix, Arizona 85012

Direct [email protected]

[email protected]

Firm [email protected]

Ph 602.265.7997

Fax 602.265.6099

Web site www.azbuslaw.com

follow us on Twitter at DonaldWHudspeth

Read more
Answered on 4/05/11, 8:24 am


Related Questions & Answers

More Labor and Employment Law questions and answers in Arizona