Subcontracting company is not paying Invoices

[RakhiRoy]

Hi,

I was on a H1B visa through company "A" and working for a client through a subcontracting company "B"

Client paid Invoices to "B" - But subcontracting company "B" didn't paid the Invoices to my employer "A"

Here is my question:
a). If subcontracting company "B" file a bankruptcy then can he escape from
paying the Invoices to "A" ?
b). If my employer go legally does "B" will be able to pay?

Can anyone help me with your ideas!

Thank you,
Rakhi

 

[RakhiRoy]

The reason I was worried is,
Earlier my employer use to pay employee's but some of the sub-contracting companies did not paid him and he got Invoices after several months from the sub-contracting companies. So he mentioned which made him to follow this new procedure..

I was not paid as he said if "B" pays to him then only he will pay to me.. So "B" didn't pay "A", hence "A" was not able to pay the salary

I was middle of my GC process so I cannot take any action..considering he might not screw up my GC..

Thanks,
Rakhi

 

[rrajendr]

another pragmatic approach is to stop sending timesheets to employer B (who is ur subcontractor) and then tell him that until employer B pays to your employer A you willn't send him timesheets from now on. This would put pressure on employer B since he can't get payed till he submits your timesshets and he might yield to it and start sending it on time. You have to be patient here and see how employer A reacts to it within 2-3 month window and then act accordingly.but I have seen things working for lot of employees.

 

[Jim Mills]

another pragmatic approach is to stop sending timesheets to employer B (who is ur subcontractor) and then tell him that until employer B pays to your employer A you willn't send him timesheets from now on. This would put pressure on employer B since he can't get payed till he submits your timesshets and he might yield to it and start sending it on time. You have to be patient here and see how employer A reacts to it within 2-3 month window and then act accordingly.but I have seen things working for lot of employees.

The best way to handle the case from the employee's perspective is simply to demand that the employer pay the employee, regardless of whether the client or intermediary ever pays. Reputable companys bill $240 per hour for employee's who make $30 per hour. The excess covers benefits to the employees, vacations, expenses, overhead, and profit, which should compensate the employer for the risk involved. The employer cannot refuse to pay employees for time that was actually worked.

The best way for the employer to handle this, would probably be for the employer to contact the client directly (it may be necessary to inform the intermediary company that this will be done if payment is not made) and inform the client that the intermediate company is not paying the employer and that the employer cannot afford to keep a valuable employee tied up without payment. The client will not want to lose the services of the contractor and the client will then contact the intermediate company directly to force payment. If that does not work, client may revoke contract with intermediate company and contract directly with the employer. If this exchange is well documented, it is unlikely that a lawsuit would arise from the intermediate company since the intermediate company was clearly in breach and had the opportunity to cure.