Can the company change my rate of pay after I've done the work? 12-03-2009

I was a 1099 independent contractor for a real estate investment company until July of 2009. This company is now trying to not pay me full compensation for work I performed. They claim to have changed their pay scale effective October 1, 2009 and want to pay me according to it. I will be losing close to $7,000 if they pay me with the new scale. Can this company essentially pay me what they want, or do they have to pay me the rate they had in July when the work was performed?

Ann Kiernan replies:

Whether you are a contractor or an employee, the law is the same: No, an employer cannot change the rate of pay after the work has been done. They are certainly free to say that beginning on October 1, there will be a new pay scale, and anyone who works on or after that date will have to accept the new rates.

If you were an employee, you could go to your state's Wage and Hour office and ask for help in getting paid. But since you are a contractor, you will have to go to court to collect what you are owed. In many states, there is a special court with simplified procedures for cases involving small claims (less than $10,000), so you may be able to handle it yourself.

Good luck.

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