Maryland | Business Law
Legal Question
Payment to subcontractor
John Doe work for our company (SLC) as a subcontractor thru Company ABC. John Doe is an employee of Company XYZ. In past, John Doe's company XYZ was getting payment very late from company ABC. ABC always said they are in financial trouble. SLC has always paid company ABC on time.
When John Doe ended contract with ABC, he and his employer XYZ asked SLC to hold last 6 weeks payment and split the fund appropriately. SLC pays ABC $50/hour. ABC pays XYZ $40/hour. Can SLC pays ABC $10/hour and $40/hour to XYZ without any legal obligation to ABC? XYZ says they will give us a letter in writing that they will not try to collect money from ABC.
SLC (we) are holding payments for almost 3 months and would like to release it ASAP. Can SLC write two checks-- one for ABC and one for XYZ. This way both parties get paid what they suppose to get? ABC does NOT want to do this and want all fund. But XYZ want to do this so they will get paid without having to deal with ABC.
Is this possible? What other options does SLC has? Write one check to ABC and other check to pay to the order of ''ABC and XYZ''? Can SLC (we) do this legally?
Thru third pary who can split the amount.
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Read More Answered By: Lawrence Holzman |
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