I'm an employee of a contracting company (a subcontractor on a job). I performed labor, but the contractor stiffed me. Can I file a lien?
1 reply
Feb 4, 2020
Under KRS § 376.010(1), "Any person who performs labor or furnishes materials..." will be entitled to file a mechanics lien in Kentucky. So, based on that "Any person" language, it appears that individual people who have performed labor or materials at the job site should be entitled to lien, even if their work was done as an employee of a contractor, subcontractor, etc.
Importantly, though, there may be some notice requirements that come into play for those who were not directly hired by the property owner. More on that here: Kentucky Mechanics Lien Guide and FAQs. Further, keep in mind that jumping straight to a mechanics lien filing can be a drastic measure, and it might be helpful to explore some other options before jumping into a lien filing.
Options for payment recovery before resorting to a mechanics lien claim
First, it's always a good idea to try and talk issues out before taking an adversarial route for payment recovery. If possible, discussing the payment issue and explaining how much trouble nonpayment is causing might help to move things along. If that's not enough, pursuing some of the following options might be useful and could lead to payment without an actual lien filing.
Invoice reminders
If you're an employee, this option might not make all that much sense if there's no single invoice for your work. But, if an invoice is present, sending an invoice reminder can be the gentle nudge in the right direction that's needed to get paid. Even if there isn't a specific invoice to point to, sending a similar payment reminder document could help.
Demand letters
Showing your employer or customer that you're serious about getting paid should help, too. Sending a demand letter that contains specific legal threats, or threatens to pursue wage violations, could move the needle. And, putting a deadline on the time to pay what's owed can add urgency to the situation.
Notice of Intent to Lien
Finally, since mechanics liens are so powerful, that means the threat of a lien claim is very powerful, too. Sending a warning like a Notice of Intent to Lien will get the attention of others on the job, and it will help make sure all hands are on deck to get the payment dispute resolved. Typically, a Notice of Intent to Lien will be sent to the nonpaying party as well as others on the job like the owner, GC, lender, etc. The more people who are aware of the issue, the better the chances that it gets resolved.
Other legal claims
As mentioned above, if it's an employer who's failed to make payment, then filing a wage and hour claim could be an option to make sure you get what you're owed. If you're working as an independent contractor, filing legal claims like breach of contract or a claim under the KY prompt payment laws. Ultimately, though, to assess what legal claims may be on the table - it might be wise to consult a local Kentucky employment or construction attorney. They'll be able to review your circumstances and any project or employment documentation, then advise on how best to move forward.