Legal Question in Employment Law in Virginia

Delayed Payments to 1099 Consultants

What are the laws surrounding delaying payments to 1099 consultants when they are late in submitting timesheets and/or invoices? Can a company get in trouble if it enacts a policy where payments to 1099 consultants will be delayed by one week if a timesheet or invoice is more than 24 hours late? ...thank you. (FWIW, the company now pays invoices every other week and is done 2 weeks in arrears).


Asked on 10/22/07, 1:47 pm

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Delayed Payments to 1099 Consultants

Such a policy might be adjudged arbitrary and capricious (and therefore possibly sanctionable) if it ever came under scrutiny by those with the power to exercise such oversight, and, therefore, would likely be best avoided if at all possible.

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Answered on 10/22/07, 8:24 pm


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