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Contractor is holding up payment

WashingtonRecovery Options

Contractor claims hes entitled to withhold Workers Comp out of our invoices. This is after work has been complete and Net 30 matured. Contractor has sent a Final Payment Offer he wants us to sign and get notarized stating he will be deducting workers comp.

2 replies

Aug 25, 2022
That does not make sense for subcontractors who are responsible for their own taxes. Hire a lawyer to look over the situation. If you are an employee, or could be classified as an employee by L&I he may have a point. But don't sign until your own lawyer looks things over as to the contract obligations and L&I weighs in on employee status.
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Aug 29, 2022
It is not normal for the contractor to make the homeowner pay for the contractor's employees workers compensation. However, if your contract states that the homeowner agreed to pay it, then the contract controls. But if there was no agreement, then it's the contractor's responsibility.
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