I own a sm business doing installations of backyard sheds. I hire general help and pay $75 a day. If theyre able to do the job I offer a contract position to install on their own and hire their own laborer. I had a guy come out to see what the job was (he was older and was concerned about lifting) he said he could do it after 6 days with me. He brought the guy that he was going to bring on with him out as well. I never agreed to pay the 2nd guy he brought out, he never even had my phone #. They did 1 install and quit only to find out they caused damage to the property, that I now have to fix. They have been calling & sending letters to the national co I partner with demanding they pay them $6k. after speaking to the Co I partner with and being notified that this is damaging our relationship, I spoke to these people and agreed to pay them an extra $1500 OVER the $581 I already paid the guy I actually had the oral agreement with. It came time to met with them and give them the money and have them sign a release and of course they have demanded more money. Once I pay them is there any way I can sue them in small claims court for extortion and harassment?About how long do I have to sue
Your post suggests that the way you are doing business exposes you to massive employee liability. You need to locate and consult with an employer-side employment attorney right away to change your practices.
Paying a flat rate is probably going to get you in serious trouble on several levels - overtime and minimum wage. Treating them as contractors and not employees is another huge mess.
You have opened yourself to the kind of issue you have posted about by not having compliant employee practices and procedures.
As to this particular issue, there are ways to stop the continual ask for more money. You need to get an attorney involved immediately to do this right. Getting your advice on a public internet Q&A site just won't do the trick.
You may claim that you cannot afford to use an attorney. I will tell you that you cannot afford to not use an attorney. Depending on the number of employees/contractors you use, a single disgruntled employee could cost you many hundreds of thousands of dollars in exposure.
Good luck to you.
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