Real questions from the Hotline:
Question: What are our requirements for paying a contractor who has not completed the assignment?
Answer: The first thing we recommend is that you check the contract you signed with this contractor. Typically these types of contracts have clauses that cover nonperformance of work and payment schedules. If the contract is silent on these issues, we recommend that you consult with your attorney to determine your next steps, as your decisions on how to proceed will be governed by business transactions law. Because this contractor is not an employee of your company, the standard wage and hour rules that you would apply to employee payments in an employer-employee work relationship will not apply.