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Does this law apply to me?

I am a private contractor with a company out of Michigan. They hire me to teach people how to train on the simulators that they sell. This past year they have been following a trend of paying us outside of the 30 day mark. In a most recent case, I was paid some 60 plus days later. I am under contract with the company that they have 30 days to make payment. My questions are this... 1) Does the law of sighted here apply to me? 2) If so, does the 30 day clock start ticking after the contracted 30 days? 3) Can I charge the company the percentage 1% plus the 5% on my own, or does that have to be filed with a court?

1 reply

Dec 10, 2019

New Jersey's prompt payment laws are available to ensure that businesses are paid in a timely manner for construction or construction-related work. But, for businesses in other industries, these laws won't be available to speed up payment time frames or to impose interest penalties on customers. Regarding the 30-day clock: Contractors must be paid within 30 from the billing date, in accordance with the contract. And finally, regarding interest penalties - in order to recover interest, a claimant may need to pursue a lawsuit. Naturally, a customer won't often freely relinquish an interest penalty unless they're forced to do so. But, potentially, threatening to take legal action and to force them to pay interest (plus the costs associated with legal action) could convince them to pay interest on their own accord. For more background on New Jersey's prompt payment laws: - New Jersey Prompt Payment Guide and FAQs

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