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Pay not recieved

ArizonaMechanics LienNotice of Intent to LienPayment DisputesRecovery Options

Hi, so i was hired to start working construction threw a friend of a friend. I was hired as a subcontractor for All-State solutions llc. They hired a manager who pays us and over sees us, saying all pay questions needs to be directed to him. On my second day the owner, Manger and General contractor came to us at a a meeting saying that we were 1099 employees of allstate who need to file taxes every 3 months and we will be receiving statements every 3 months also... but continued to pay us cash each Friday with no documentation stating what we were paid or hours. We would keep track of our own hours and text the crew lead each week.... Starting the second week, the manager over seeing all the crews started to become short saying he would pay us all next Friday. When that day came he would have partial. Next saying he would pay is in full when the job is ended but he ended up paying partial payment instead of full. On the last day of the job he paid partial once again. Now I can not get ahold of the manager. Other guys from the crew have gone back to work but have not received pay. I have not received pay nor gone back to work. Any suggestions or ideas on what I can do to recover my pay?

1 reply

Mar 11, 2020
When a laborer goes unpaid for their work on an Arizona construction project, they'll generally have a number of options available for payment recovery. Let's take a look at some potential recovery tools.

Invoice reminders and demand letters

Unofficial recovery tools can go a long way toward getting paid. Sending reminders that you haven't been paid can be a simple tool for getting a customer to pay what's owed. A little nudge could be enough. Or, escalating matters with a payment demand letter could show the customer that you're serious about getting paid and willing to do whatever it takes to make sure that happens. Including legal threats and potentially threats to report a customer who's using shady accounting and tax procedures could help to force payment.

Notice of Intent to Lien

Threatening to file a mechanics lien can be an incredibly powerful tool, too. Sending a Notice of Intent to Lien to your customer, to the project's property owner, and any other higher-tiered project participants will make sure that all decision-makers on the job are aware of the payment dispute. And, because mechanics liens can create so many problems on a construction job, most recipients will want to do what they can to avoid a lien on the job.

Filing a mechanics lien

A mechanics lien is the most powerful payment recovery tool out there. They force payment in a number of ways, and they can force an owner or customer to finally deal with nonpayment on the job. Liens are typically considered the nuclear option, though, and they shouldn't be taken lightly. Still, if necessary, a lien claim can get you paid. More on AZ liens here: (1) Arizona Mechanics Lien Guide and FAQs; and (2) How to File an Arizona Mechanics Lien – A Step by Step Guide to Get You Paid.

Other recovery options

If payment is owed but not being made, legal claims will generally be available - like a breach of contract claim or a prompt payment claim. If legal claims will be pursued, keep in mind that small claims court could help to streamline recovery for disputes under $3,500. Of course, before deciding on how to proceed with legal claims, it'd be wise to consult a local Arizona construction attorney for advice on how best to recover payment. Further, as mentioned above, reporting a customer for questionable accounting or tax practices might help to hold them accountable. Reporting them to the Arizona Registrar of Contractors might be an option, too.
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