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About Timmy Chou
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I am a experienced Mediator and a partner in a management consulting firm. As a mediator I work as a third-party neutral and specialize in partnership/shareholder disputes, management/labor issues, company culture difficulties, and family-owned business problems. I can help describe why alternative dispute resolution may be a good choice for you. As an experienced management consultant I may be able to offer creative ideas to help resolve your organizational and business problems and disputes. "If you say conflict, I say opportunity".

 
   

You are here:  Experts > Business > Corporate Law > Arbitration/Mediation > unpaid wages

Arbitration/Mediation - unpaid wages


Expert: Timmy Chou - 3/17/2009

Question
i accepted a contracted job with a company called Network Omni services which is an interpreting company. my assignment started the last month of June '08 and per the contract i would receive payment in 60 days for the first month worked and would continue to receive payment every month after that. i received a call at the end of august telling me my services were no longer needed.  i was due for payment the beginning of September but once i started calling for payment no one would tell me when i would receive it.  They owe me about $4800 and i have only received about $300. What can i do to get my money from this company which i found out has been involved in lawsuits for failure to pay.

Answer
Thank you for your question!

As I always note to questioners, mediators act as neutral third parties to disputes and never "get involved" in judging the merits of conflict, but merely use special techniques to help the parties decide how to negotiate their own settlement.

The case you describe here is unfortunately very typical.  I am not an attorney and cannot give you legal advice nor can I mediate this with you alone, but I can respond to your question from my business consulting experience.

Note that this matter may have legal considerations and you may wish to consult a attorney.

I often tell people that it may be useful to consider that right and wrong are not always the most useful places to begin in dealing with these sorts of problems.  For most large organizations there is only expedient and inexpedient.  Also, there is a cost to exacting justice and the costs can be quite high.  Remember that your person-hood and your work are not even remotely related and that the most successful people at work are often the least successful with others since they have often become successful on the bodies of those they have slain.

You are dealing with authority figures or owners who are only interested in the path of least resistance in terms of how they manage the business.  I'm guessing they could care less about you so don't put too much investment in your position.  You are being handled in this unfair manner for business reasons and now you must create a business reason to deal fairly with you.

Please begin by documenting a very careful chronology of events as they have occurred.  Names, dates and locations.  Put things in writing at this point.  

At this point it sounds like you may have been dealing with a company that was scamming people like yourselves all along.  They know that at the end of the day you have very little recourse but to sue them and incur alot of cost and time in order to be paid.  The amount you are due is an amount you can pursue in small claims court, and you should file a complaint there.  The problem may be if they are out of state.  Even if you get a judgment it will cost you be able to enforce the judgment in another state.  

You can try contacting the BBB or your state consumer protection office.  

You can also try to attack them if they are required to be licensed in the state by complaining to the state licensing office.  Also, trade groups or other ethnic advocacy groups may be interested to know about their practices.

You must try to cause them the most business pain and suffering you can by attacking their reputation.  In the end, the company must see that it will cost a lot more to deal with all the problems you will cause them for their practices and then they will make a business decision and settle fairly with you.  

Of course, this is not a good mediation case since mediation is a voluntary process with willing parties.

These are some ideas.  Feel free to follow up with additional questions.

For your information, the pros and cons of the types of dispute resolution methods follows.

GOOD LUCK!

Arbitration, Mediation, and Litigation

Arbitration: the referral of a dispute to one or more impartial persons for final and binding determination outside of the judicial system

Benefits of Arbitration:
  Confidential, no public record
  Limited exchange of documentation, information
  Quick, don't have to wait for a court date
  Arbitrators have expertise in the subject matter and are trained in conflict resolution
  Cheaper than litigation
  Preserves business relationships

Negatives of Arbitration

  It's a compromise, no 100% winner
  Complex arbitration can be costly
  If not satisfied, may litigate the arbitration procedure
  Poor results with an unskilled arbitrator
  Both parties must agree to cooperate in the process

Mediation: the process by which parties submit their dispute to a neutral third party (the mediator) who works with the parties to reach a settlement of their dispute.

Benefits of Mediation:

  Neutral mediator can objectively suggest alternatives not considered before
  Parties are directly engaged in negotiating the settlement
  Can be quicker than litigation
  Less costly than litigation
  Preserves business relationships
  85% of American Arbitration Association cases mediated find successful solutions

Negatives of Mediation

  may not reach a binding decision
  unskilled mediator

Litigation: using the judicial system to resolve disputes

Benefits of litigation:

  a clear winner and loser
  uses a prescribed set of procedures
  more predictable outcomes
  is final

Negatives of Litigation:

  waiting for court dates can do more harm
  usually more expensive than mediation and arbitration
  part of the public record

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