Complaints Vs. recruiting Firm (contractors, living, legal)

[rvsanche]

[SIZE=3]May, 07, 2009[/SIZE]
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[SIZE=3]Complaints[/SIZE]
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[SIZE=3]I was hired by a New Jersey IT and Finance Recruiting and Placement agency and put me to work as Financial Analyst with their Client (a DC Government Contractor). My engagement contract is Corp to Corp, instead of 1099 (Independent Contractor) and I invoice the recruiting firm for my services. [/SIZE]
[SIZE=3]Our service engagement contract states that I will get paid as soon as their client (a DC Government contractor) pays them. The recruiting firm claims that as per their client’s agreement they get the payment as soon as their client gets paid by the DC Government.[/SIZE]
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[SIZE=3]However, the trend of payment seems to be getting to a minimum of 60 days before my old invoice get paid and slowly running now to 75 days. [/SIZE]
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[SIZE=3]When I verified lately, to this date, the DC Government Contractor has already been paid his March’09 invoices and my recruiting firm only paid the first half of my February, 09 invoices. I also verified that the DC Government Vendor-Contractors term is 30 days and by the check is out for payment, it takes a week and another 3 days before it gets to the Vendor-contractor. Utmost, the Vendor-Contractor gets the payment in 45 days.During my diligence check, I found out that other Sub-Contractors like me are in the same boat.[/SIZE]
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[SIZE=3]What is the best ethical and legal solution to this issue to make my recruiting firm pays me as agreed upon and stop this practices. I don't have copy of their client contract with them but was told that their client has not send in yet the payment. They keep pointing fingers on each other every time I followed up the collection for my services and I don’t know who’s stretching who? at this point. I feel that there is collusion between my recruiting firm and their client at this point in stretching their payment, which I considered unethical practices.[/SIZE]
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[sholden]

So you do the work and the payments go as follows:

DC Government pays DC Government contractor
DC Government contractor pays Recruiting Firm
Recruiting Firm pays you.

and invoices flow the other way, in order for you to get paid 3 invoices have to chain and then 3 payments back. Right?

And your agreement say the Recruiting Firm pays you as soon as they get paid. And you've verified that the DC Government has paid the Contractor. Which leaves two options for the delay:

1. The DC Government Contractor hasn't yet paid the Recruiting firm.
2. The Recruiting firm isn't meeting its contractual obligations to pay you in timely fashion.


1. is a problem since you are not a party to that invoice/pay agreement at all so who know's who is the guilty party for being slow.

That's a strange payment agreement, if the Contractor never pays the Recruiting Firm then your stuck with no money and no one to claw it from because the Recruiting Firm is living up to your agreement with them (they'll pay you as soon as they are paid, since they haven't been they haven't paid you) and you aren't party to their agreement with the Contractor.