Can my employer withhold my pay until the builder pays their bill?

Full question:

I work for a company that sells appliances to customers and builders. A big company bought a huge amount of appliances for a condo project and management had them on a credit line. I was paid as normal on those sales like all other sales. After about half the appliances had been shipped to the same job, the rest of the order was due to ship and my employer calls me into his office and says he won't pay me on the rest until the builder pays the entire bill as they were slow on paying. Then he ships the order to the customer, still on credit. It turns out that the builder has had a hard time selling the condos and is paying so slow that they still owe the employer a lot of money. My question is, can he not pay me like this? Am I out of luck here or can I sue him for the $7400 in pay he owes me as it was his decision to offer them credit not mine.

  • Category: Contracts
  • Subcategory: Breach of Contract
  • Date:
  • State: Washington

Answer:

Your relationship with your employer is governed by a contract, which outlines the terms of your payment. To understand your rights regarding payment, you should review your employment contract carefully.

A contract is a legally enforceable agreement between two parties that establishes their rights and obligations. If your employer has breached the contract by withholding your pay, you may have grounds for a legal action for breach of contract. This occurs when one party fails to fulfill their contractual duties, causing economic harm to the other party.

In cases of breach of contract, remedies can include monetary damages, which aim to compensate you for financial losses. You may seek to recover the $7,400 owed to you. If your employer's decision to delay your payment was unjustifiable, you could potentially pursue legal action.

Additionally, if your employer's actions caused you to rely on their promise of payment, you might have a claim under the theory of promissory estoppel. This applies when a promise induces action or forbearance, and enforcement of the promise is necessary to avoid injustice.

For specific legal advice tailored to your situation, consider consulting with an attorney who specializes in employment law.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

In general, employers cannot withhold your paycheck without a valid reason. If your employer is withholding pay due to a dispute with a third party, like a builder, it may be a breach of your employment contract. You should review your contract and consider seeking legal advice to determine your rights.