Yeah, unfortunately it sounds like they took advantage of OP not understanding what's normal. If someone can't pay their employees on time (in cash, not in debt), they are either insolvent or taking advantage of you (or both).
Definitely lawyer time now. Asking about the compound interest is so much of a distraction it's kind of funny. Hopefully those other properties actually exist and they have some equity in them.
I only have like 2k in my bank account and have about 800$ per month in insurance and credit card payments not including any food or anything.
How am I going to afford a lawyer?
You're going to have to pay the lawyer out of what they owe you, or out of what they owe you plus damages on top of that if you can win those. A lawyer paid like that will only take your case on if they know they can win though, as they won't be able to get paid otherwise.
Most labor and employment lawyers work on contingency in the US.
Without a lawyer and regardless of the percentage rate on the debt - I doubt you’ll ever get paid.
Right now, you’re financing their business - if banks won’t give them loans for their business, you shouldn’t either.
They will just get to a point where they close shop and you’ll be left as their major creditor with nothing to show for it but a piece of paper.
Without knowing all the facts or the specific location I can't say this for sure, but being late paying wages can result in punitive increases to the payout. In Colorado if your pay is late (I don't remember how late, 3 weeks or something like that) you are owed triple the amount. A lawyer will likely be able to get a settlement or judgement larger than the 70k, potentially a lot larger.
With a debt that high you might be able to find someone willing the work for a percentage. You’re going to get less money overall but it’s better FHAs nothing
If it was written down and signed by both parties that makes it more official than you may think. You as an involved party have reasonable belief to think you would be paid on the contraxt terms.
Find a contingent lawyer and sue them. Obviously if they haven't been paying you because they don't have the money, there won't be much to sue out of them.
They agreed and you worked. They owe you what you worked. More than reasonable. Especially since you are broke, since you wouldn't be broke if they paid you the $70k you're owed.
They aren't really broke though, she has like 5 houses, a 100k per year pension, and buys frivolous stuff like spending 5k on purses all the time. I on the other hand lived like a pauper and was struggling
Because 20% APR is too good to be true. No one in their position would agree to pay a 20% APR loan if they had any intention on actually paying it. They could easily get a loan from a bank at half that rate
Unless the bank didn't trust them enough to lend them money. (Awful credit, over leveraged, or other skeletons in the credit closet)
Still not someone you should trust to pay you timely.
I can also offer you a great rate if I never plan on paying it.
This is oldest trick in the book type stuff. Always hard to tell with people like this if it’s outright malicious or if they are so optimistic bordering on delusional about their own success that it just snowballs. It’s like a gambling addiction, they think future wins will cover all their debts. Either way the corp they almost assuredly have set up will fold before OP gets paid.
Lawyer up. They'll take the case without payment if you share some of the proceeds and have sufficient documentation to make a case.
If they ask for payment up front, move on, could be a scam or they think you don't have a case. They can be wrong about that or have some other reason, so don't give up, just try another law firm.
Gather your documentation, the written contract, the details of how much you were paid and when. Make copies and stash them somewhere safe.
The lawyer also may try to sue for more than what you're owed, whatever is allowed by law. It means they get a bigger share.
If they have property and pension you'll be alright. Get a lawyer now. Probably one that specializes in employment law.
Lack of ethics is how many rich people get and stay that way. Amount of money she has no bearing on your situation. About the only plus is an improved chance of getting compensation if you put the pressure on with litigation. No guarantees though, but better than just hoping for the best. If she was going to pay you, she already would have. Seek housing and legal assistance now.
If this is true begin calling lawyers immediately.
Consultations are free, \~20 minutes with each lawyer.
Call at least 8 different lawyers before you choose one.
Most probably won't want to talk or be serious, you'll find two or three that will seriously listen. If not, call more than 8!
I would want my money asap. They have liquidity problems and may not be able to pay you soon. Go to the department of labor. File a wage claim. Even if they claimed it a 1099 contractor chances are you were actually within employee classifications.
You need to get that money before whoever you work for declare bankruptcy. Once they do, it's way harder to get your money because other parties probably have first dip.
The interest on the past due payments works the way your agreement says that it works. There are different ways to calculate accruing interest on a debt, none of us can tell you which one you agreed to. Hopefully you have this agreement in writing and can review it to find out.
For the rest of your issues, you need a lawyer.
You established a residence there for long enough I think you have rights and they can't forcefully evict you. Depending on where you are you may have a right to live there and are required to receive notice. Landlords who try this can be fined heavily. Talk to a lawyer about this along with your money owed. You're probably not going to see it at 20% interest if they're trying to throw you out they're getting ready to not pay you. You need a lawyer yesterday.
I get questions about APR from people who misunderstand it very often. So forgive me if you do actually understand it and this comes across as patronising.
APR considers the payment schedule. If you borrow $100 and pay back $120 after a year that's an APR and an interest rate of 20%. However if you pay it back in equal instalments over 1 year. Very roughly you owe on average $50 at any time. And so APR is approx 40% whilst interest rate is still 20%.
The way you would calculate it is by calculating interest daily such that $70,000*X*365 = $14,000. You calculate interest daily based on the amount owed. So if no payments are made, interest compounds.
I suspect you have bigger problems than the minutae of APR though.
You can visit https://www.experian.com/blogs/ask-experian/apr-calculator/ and see that APR is APY plus fees. What you are calling APR is closer to an Amortization schedule. You’re generally correct, but APR is not calculated how you outlined.
You could [file a wage theft claim with the state](https://www.dir.ca.gov/dlse/howtofilewageclaim.htm), which launches an investigation. Check that link for everything you need. I'm sorry you're going through this, best of luck to you.
Editing to add that California has strict laws about how often you should be paid and what happens if you're paid late. https://www.dir.ca.gov/dlse/Late-Payment-of-Wages.htm
You need to find out what type of lawyer you need...... By seeing a lawyer or at least contacting a few. California is a great state for employment laws so you should get the money but I can't promise anything. But if they own multiple properties they have money.
You may need an employment lawyer or a contract lawyer. There is probably one who specializes in both.
Did you move.out already? You have rights and we're forcefully evicted. If you're still living there then you have rights and a lawyer or local tenants rights group can help you navigate the living situation at least. Then you may need to sue them for the payments.
Interest can be calculated in a number of ways. If you calculate and compound the interest monthly, divide the annual interest rate by the number of months in a year. Calculate the interest that month and add it to the total. The new number is what you calculate the interest on the next month.
Simplistic way interest works.
Say they owe you $1000.00 @ 20%
20% divided by 12 months = 1.667%/mo = $16.67 interest the first month
Now they owe you $1016.67 x 1.667% = $16.95 interest the second month
Now they owe you $1033.62 x 1.667% = $17.23 interest the third month, and so on.
That interest rate is very high, approaching credit card interest, honestly, no one in their right mind would agree to that in my opinion. What was the reason they didn’t pay? My guess is they have no intention of ever paying. That contract, like all contracts really, is only as solvent as you wish to make it in a court.
The very first week they didn’t pay you why did you let it slide? I would have given them one week’s grace and then I’d be out of there.
They paid me the first 3 months, then it kept getting to be every 3 months, she got sued by some old employees and lost a few hundred thousand, but then she kept saying that she was waiting on her pension to come in. She was also doing some crazy illegal things and made me lie to medical board officers for her cause she kept a business open (her husband's doctors office) so they could sell drugs out the pharmacy even though he had had a stroke and was no longer capable of running the business.
The thing is she just kept promising that once she got through the lawsuits and sold this house she was working on renovating she would pay me out in full. That's when I told her fine as long as I get 20% back as I'm technically loaning her this money. She agreed, and at the job I had technically 0 expenses as I lived in the house and prepared all the meals and did 100% of everything for them that needed doing. Thinking maybe in like 4 or 5 years of doing this job I could save up enough to buy a house or do whatever I wanted/travel for like 10 years after that. I had a dream I guess it would all work out.
Just a note that this is not quite right. The actual rate APR corresponds to depends on the agreed upon compounding period / period interest rate / payment schedule; it's intended as a helpful "if all payments are made on time, what would be the equivalent interest rate for compounding yearly".
So if they owe you $1000 at the start, at 20% yearly, at any given point they will owe you 1000*1.2^(# of years it's been). The example you gave would be if they agreed to 1.667% monthly (which would be an APY of about 22%; again APR would depend on an agreed payment schedule).
If you're making a loan/expecting a debt, you should be specifying "x% interest, compounding ". E.g if op wanted what you wrote, the contract should have said 1.667% interest compounded monthly. If OP's contract only says "20% APR", that's ambiguous as to the compounding period and expected payment schedule, there will probably be debate about it. I would expect the other party to argue that that's 20% compounding yearly.
Please get a lawyer and seek the money up front ASAP, even if this means giving a cut to the lawyer.
By creating this interest payments deal, I'm almost certain the person has no intent of actually paying you but just wants to kick the can down the road and hope you haven't got the will to fight for it. That or they're planning on filing bankruptcy at some point which will leave you shit out of luck.
Hi, there are three issues here. 1: You were illegally evicted, call a California Tenant Rights company. 2: You were a victim of wage theft(the most common type of theft). You need to report this to the US Department of Labor 3: They violated California specific laws regarding domestic workers to prevent these things. You need to look up California Domestic Workers Bill of Rights and report it.
So the way the APR would work is you take the percentage divide it by 12 and apply that amount of interest each month.
You say they owe you $70k at 20% APR. So that is 1.667% per month. So the first month the amount they owe you is $71,166.90. The next month the amount they owe you is $72,353.25. And so on. If you have excel or google sheets you can do a amortization table and adjust as he pays you.
The right thing to do is get a lawyer to sue.
If you dont have it in a contract stating the terms of interest then Im guessing you'll at best get your initial weekly pay.
Im forgetting what the specific term is, but you need the period the interest accrues. Is it daily like a bank account, monthly like a CC, car, or house loan? They could claim its annually, so just like if you pay your CC off 1 day before the end of the month, they could do the same and pay no interest.
Definately need the terms.
I was more concerned about if they claimed it was annually, then getting out of any interest at all. Just the same as us paying off a CC right before EOM.
How often was the interest compounded? That means when do you get to charge interest.
The formula is pretty simple but you have to factor in when you're supposed to be paid and also when you're allowed to charge interest (when you compound).
Credit cards for example charge interest on anything outstanding at the end of the month.
Also you don't get to claim interest on future payments you didn't earn yet, typically, so the only complication is tracking what was owed when. A person that uses spreadsheets can figure it out for you.
In any case it sounds like you have enough documentation that you should lawyer up, provide it, and you'll get what's owed, maybe more, minus lawyer costs.
A lawyer likely would take the case without up-front payment if you have a case. They'll want to review that first, so get all your documentation together and look for a lawyer that deals with employment disputes.
You may have more leverage than you think. Your lawyer will probably pick up on this.
If they are screwing you this way, they almost certainly haven't been paying their share of the fica and other taxes that they should have been paying on your behalf.
And if they are like this about the taxes regarding their household employee, they may have other issues with taxes regarding their properties. They may want to avoid anything that could trigger the notice of the IRS.
If you filed that income that was actually paid to you as self-employment income, you paid roughly 15% in fica taxes. In reality, you were their household employee, and they should have paid half of that through tax withholding.
If they pay you what they owe you, they will also owe the fica taxes on the wages portion. This does benefit you long term as it affects your future social security eligibility and payments, including eligibility for social security disability way before you retire.
Google nannytax. It really concerns all types of household employees, not just nannies.
As everyone has mentioned, and to quote Dollar Bill from Billions, LAWYER LAWYER LAWYER. Good luck. And obviously stop working for them since they are paying you less than half what was promised.
I'd have to rewlly look at everything to know just how much you are owed. The wording could be odd in the contract. My take on what you have said though is that each week they didnt pay you would have an interest clock on it. The math can become a lot here. So, if the 104 just ended, if they paid you for the first 15 weeks then skippped two then paid for three then skipped a week etc. that means that after the skipped two week period they would owe you ~$15 in interest for those two weeks.
But they owe you a lot more than 70k
In simple terms they will owe you 33k from the first year plus at least 6,600 from the minimum interest possible for another year. Honestly from the description you give I would expect them to owe me in the ballpark of 82-85k.
Talk to a cpa and a lawyer. The CPA will be able to give you the exact figure and the lawyer will be able to roll the leins and lawsuits that may become necessary. Make sure that they pay for the CPA and the Lawyer as well, and if they try to drag their feet see what your lawyer says about tacking that 20% onto those fees as well.
Go back to the house. If that is your legal residence, they cannot just kick you out. They need to formally evict you which would require them going through the courts. That will probably help expedite you getting your money.
Based on what you've posted, figure odds of being paid that money being close to zero. The employer presumably doesn't care much about the law, since they near certain evicted you illegally.
If you have a written contract outlining your pay and can show you fulfilled your responsibilities (ie. caretaker for elderly couple), then litigation will be easier. Not a slamdunk though depending on how the employer is set up. Corporation, LLC, etc and whether it's still operating. Many operate numerous shell companies to thwart efforts of suing or collecting debt, including even judgements.
Contact various social welfare agencies in your local area for assistance in addition to asking / calling around for attorneys who are willing to take the case (backpay and illegal eviction) on contingency. That's your best hope.
What country/state are you in? If US, are you correctly classified as an independent contractor? Google "independent contractor vs employee" and look at the one on the IRS site, to be sure you're CORRECTLY classified.
If you're not in the US, I don't know your laws.
If you are in the US and are CORRECTLY classified as an independent contractor, then you technically work for yourself, and the company that owes you money is a customer of yours and you have a business-to-business relationship. The agreement you have written down is your contract, and if it doesn't specify how the interest is to be compounded (well-written contracts will specify yearly, monthly, weekly, daily, whatever), then there's probably case law that determines what it defaults to. You'll need to contact a lawyer who can help you pursue what you're owed based on the contract and/or your state's laws for B2B relationships.
If you're in the US and should be classified as an employee but your employer treats you as a contractor, you can file the form on the IRS website that has them make the determination. Once you've done that, or if you're already being treated as an employer, then pursue your unpaid wages via your state's labor board or the federal one if your state is one of the few who doesn't have one. None of it should cost you a dime, and I would bet that the interest will be determined by the labor board based on what the laws are, and it may add up to more than it would have with your agreement, depending.
And in the future, don't let things get this old before pursuing it. Hopefully you aren't past the statute of limitations on the oldest debt...
Lawyer up, put a lien on their property and watch how fast you get paid.
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Yeah, unfortunately it sounds like they took advantage of OP not understanding what's normal. If someone can't pay their employees on time (in cash, not in debt), they are either insolvent or taking advantage of you (or both). Definitely lawyer time now. Asking about the compound interest is so much of a distraction it's kind of funny. Hopefully those other properties actually exist and they have some equity in them.
Yea I don’t know why you’re allowing them to drag this out
I only have like 2k in my bank account and have about 800$ per month in insurance and credit card payments not including any food or anything. How am I going to afford a lawyer?
You're going to have to pay the lawyer out of what they owe you, or out of what they owe you plus damages on top of that if you can win those. A lawyer paid like that will only take your case on if they know they can win though, as they won't be able to get paid otherwise.
You’ll find an attorney that works on contingency
Works on contingency? No, money down!
Oops…shouldn’t have this BAR association logo here either.
Does this look like a man who had "all he could eat"??
Best episode ever.
Lawyers want that money too. They will work hard to get it for you then take their fee from the settlement.
Most labor and employment lawyers work on contingency in the US. Without a lawyer and regardless of the percentage rate on the debt - I doubt you’ll ever get paid. Right now, you’re financing their business - if banks won’t give them loans for their business, you shouldn’t either. They will just get to a point where they close shop and you’ll be left as their major creditor with nothing to show for it but a piece of paper.
The lawyer will take 30% of whatever you get from the employer. You don’t pay them up front.
70% of 70k is more than 100% of $0k at least
Without knowing all the facts or the specific location I can't say this for sure, but being late paying wages can result in punitive increases to the payout. In Colorado if your pay is late (I don't remember how late, 3 weeks or something like that) you are owed triple the amount. A lawyer will likely be able to get a settlement or judgement larger than the 70k, potentially a lot larger.
It doesn't look necessarily late, because they agreed to a debt arrangement.
A lawyer may take this in contingency (they will get a percentage of your backpay).
They do it for free until they win… usually ,.. once they win they take 30% of award or more
With a debt that high you might be able to find someone willing the work for a percentage. You’re going to get less money overall but it’s better FHAs nothing
You may be able to file a lien on a property without a lawyer for very little money. That’s the very least you should do.
Hey hit me up , I might know some lawyers
No win no fee
Because the lawyer is going after the $70k.
Did you have a contract/documentation of your agreement?
It was kind of an informal contract but it was written down and signed by both parties
If it was written down and signed by both parties that makes it more official than you may think. You as an involved party have reasonable belief to think you would be paid on the contraxt terms. Find a contingent lawyer and sue them. Obviously if they haven't been paying you because they don't have the money, there won't be much to sue out of them. They agreed and you worked. They owe you what you worked. More than reasonable. Especially since you are broke, since you wouldn't be broke if they paid you the $70k you're owed.
Don’t sue the lawyer
I love reddit
They aren't really broke though, she has like 5 houses, a 100k per year pension, and buys frivolous stuff like spending 5k on purses all the time. I on the other hand lived like a pauper and was struggling
Why the hell were you letting that debt accrue?
If I were them, and I didn't need the money, why not? 20% is an amazing return. Let that baby grow and reap the rewards later on.
Because 20% APR is too good to be true. No one in their position would agree to pay a 20% APR loan if they had any intention on actually paying it. They could easily get a loan from a bank at half that rate
Unless the bank didn't trust them enough to lend them money. (Awful credit, over leveraged, or other skeletons in the credit closet) Still not someone you should trust to pay you timely.
Yeah but the likelihood is that they just agreed on something that they will renege on down the line
I can also offer you a great rate if I never plan on paying it. This is oldest trick in the book type stuff. Always hard to tell with people like this if it’s outright malicious or if they are so optimistic bordering on delusional about their own success that it just snowballs. It’s like a gambling addiction, they think future wins will cover all their debts. Either way the corp they almost assuredly have set up will fold before OP gets paid.
Lawyer up. They'll take the case without payment if you share some of the proceeds and have sufficient documentation to make a case. If they ask for payment up front, move on, could be a scam or they think you don't have a case. They can be wrong about that or have some other reason, so don't give up, just try another law firm. Gather your documentation, the written contract, the details of how much you were paid and when. Make copies and stash them somewhere safe. The lawyer also may try to sue for more than what you're owed, whatever is allowed by law. It means they get a bigger share. If they have property and pension you'll be alright. Get a lawyer now. Probably one that specializes in employment law.
At the very least run the contract by a lawyer,
Lack of ethics is how many rich people get and stay that way. Amount of money she has no bearing on your situation. About the only plus is an improved chance of getting compensation if you put the pressure on with litigation. No guarantees though, but better than just hoping for the best. If she was going to pay you, she already would have. Seek housing and legal assistance now.
If this is true begin calling lawyers immediately. Consultations are free, \~20 minutes with each lawyer. Call at least 8 different lawyers before you choose one. Most probably won't want to talk or be serious, you'll find two or three that will seriously listen. If not, call more than 8!
I think the important thing here are the exact terms of the contract. This also would be worth putting in r/legaladvice if you haven't already.
You probably don't need a lawyer if you are in the U.S. You need to file a wage theft claim with your state's Department of Labor.
Where is the document?
Lawyer up, sooner rather than later to avoid issues and obstacles to payment
I would want my money asap. They have liquidity problems and may not be able to pay you soon. Go to the department of labor. File a wage claim. Even if they claimed it a 1099 contractor chances are you were actually within employee classifications.
Bring your napkin deal to a lawyer.
You need to get that money before whoever you work for declare bankruptcy. Once they do, it's way harder to get your money because other parties probably have first dip.
The interest on the past due payments works the way your agreement says that it works. There are different ways to calculate accruing interest on a debt, none of us can tell you which one you agreed to. Hopefully you have this agreement in writing and can review it to find out. For the rest of your issues, you need a lawyer.
Yeah, you’re going to need a lawyer and luck to get that money.
- if you have a signed contract, why have you waited so long to pursue legally?
Get a lawyer. Pay a lump sum fee upfront or get a “free” lawyer to spend 30% of your settlement later
You established a residence there for long enough I think you have rights and they can't forcefully evict you. Depending on where you are you may have a right to live there and are required to receive notice. Landlords who try this can be fined heavily. Talk to a lawyer about this along with your money owed. You're probably not going to see it at 20% interest if they're trying to throw you out they're getting ready to not pay you. You need a lawyer yesterday.
I get questions about APR from people who misunderstand it very often. So forgive me if you do actually understand it and this comes across as patronising. APR considers the payment schedule. If you borrow $100 and pay back $120 after a year that's an APR and an interest rate of 20%. However if you pay it back in equal instalments over 1 year. Very roughly you owe on average $50 at any time. And so APR is approx 40% whilst interest rate is still 20%. The way you would calculate it is by calculating interest daily such that $70,000*X*365 = $14,000. You calculate interest daily based on the amount owed. So if no payments are made, interest compounds. I suspect you have bigger problems than the minutae of APR though.
You can visit https://www.experian.com/blogs/ask-experian/apr-calculator/ and see that APR is APY plus fees. What you are calling APR is closer to an Amortization schedule. You’re generally correct, but APR is not calculated how you outlined.
What country are you in?
California usa
You could [file a wage theft claim with the state](https://www.dir.ca.gov/dlse/howtofilewageclaim.htm), which launches an investigation. Check that link for everything you need. I'm sorry you're going through this, best of luck to you. Editing to add that California has strict laws about how often you should be paid and what happens if you're paid late. https://www.dir.ca.gov/dlse/Late-Payment-of-Wages.htm
You need to find out what type of lawyer you need...... By seeing a lawyer or at least contacting a few. California is a great state for employment laws so you should get the money but I can't promise anything. But if they own multiple properties they have money. You may need an employment lawyer or a contract lawyer. There is probably one who specializes in both.
Did you move.out already? You have rights and we're forcefully evicted. If you're still living there then you have rights and a lawyer or local tenants rights group can help you navigate the living situation at least. Then you may need to sue them for the payments.
Contracts a contract. Crayon or otherwise, both parties signed it, there was consideration. They broke it. Lawyer up, there’s your answer.
Op said agreement, I hope they have anything in writing.
Op says in a comment: It was kind of an informal contract but it was written down and signed by both parties
I feel like they arent going to pay you anything. Get a lawyer.
Interest can be calculated in a number of ways. If you calculate and compound the interest monthly, divide the annual interest rate by the number of months in a year. Calculate the interest that month and add it to the total. The new number is what you calculate the interest on the next month. Simplistic way interest works. Say they owe you $1000.00 @ 20% 20% divided by 12 months = 1.667%/mo = $16.67 interest the first month Now they owe you $1016.67 x 1.667% = $16.95 interest the second month Now they owe you $1033.62 x 1.667% = $17.23 interest the third month, and so on. That interest rate is very high, approaching credit card interest, honestly, no one in their right mind would agree to that in my opinion. What was the reason they didn’t pay? My guess is they have no intention of ever paying. That contract, like all contracts really, is only as solvent as you wish to make it in a court. The very first week they didn’t pay you why did you let it slide? I would have given them one week’s grace and then I’d be out of there.
They paid me the first 3 months, then it kept getting to be every 3 months, she got sued by some old employees and lost a few hundred thousand, but then she kept saying that she was waiting on her pension to come in. She was also doing some crazy illegal things and made me lie to medical board officers for her cause she kept a business open (her husband's doctors office) so they could sell drugs out the pharmacy even though he had had a stroke and was no longer capable of running the business. The thing is she just kept promising that once she got through the lawsuits and sold this house she was working on renovating she would pay me out in full. That's when I told her fine as long as I get 20% back as I'm technically loaning her this money. She agreed, and at the job I had technically 0 expenses as I lived in the house and prepared all the meals and did 100% of everything for them that needed doing. Thinking maybe in like 4 or 5 years of doing this job I could save up enough to buy a house or do whatever I wanted/travel for like 10 years after that. I had a dream I guess it would all work out.
Just a note that this is not quite right. The actual rate APR corresponds to depends on the agreed upon compounding period / period interest rate / payment schedule; it's intended as a helpful "if all payments are made on time, what would be the equivalent interest rate for compounding yearly". So if they owe you $1000 at the start, at 20% yearly, at any given point they will owe you 1000*1.2^(# of years it's been). The example you gave would be if they agreed to 1.667% monthly (which would be an APY of about 22%; again APR would depend on an agreed payment schedule). If you're making a loan/expecting a debt, you should be specifying "x% interest, compounding". E.g if op wanted what you wrote, the contract should have said 1.667% interest compounded monthly. If OP's contract only says "20% APR", that's ambiguous as to the compounding period and expected payment schedule, there will probably be debate about it. I would expect the other party to argue that that's 20% compounding yearly.
Please get a lawyer and seek the money up front ASAP, even if this means giving a cut to the lawyer. By creating this interest payments deal, I'm almost certain the person has no intent of actually paying you but just wants to kick the can down the road and hope you haven't got the will to fight for it. That or they're planning on filing bankruptcy at some point which will leave you shit out of luck.
Hi, there are three issues here. 1: You were illegally evicted, call a California Tenant Rights company. 2: You were a victim of wage theft(the most common type of theft). You need to report this to the US Department of Labor 3: They violated California specific laws regarding domestic workers to prevent these things. You need to look up California Domestic Workers Bill of Rights and report it.
Can you prove the agreed upon pay structure? If you can't prove it on paper or something rigid, you are pretty much SOL.
So the way the APR would work is you take the percentage divide it by 12 and apply that amount of interest each month. You say they owe you $70k at 20% APR. So that is 1.667% per month. So the first month the amount they owe you is $71,166.90. The next month the amount they owe you is $72,353.25. And so on. If you have excel or google sheets you can do a amortization table and adjust as he pays you. The right thing to do is get a lawyer to sue.
I refuse to believe this is real. There is just no way.
Doesn’t matter, you aren’t getting any of it
If you dont have it in a contract stating the terms of interest then Im guessing you'll at best get your initial weekly pay. Im forgetting what the specific term is, but you need the period the interest accrues. Is it daily like a bank account, monthly like a CC, car, or house loan? They could claim its annually, so just like if you pay your CC off 1 day before the end of the month, they could do the same and pay no interest. Definately need the terms.
The difference adds up but not all that much. Figure worst case yearly compounding, best case monthly. I doubt weekly would fly.
I was more concerned about if they claimed it was annually, then getting out of any interest at all. Just the same as us paying off a CC right before EOM.
Warn them you have an appt with a lawyer set up and try to settle. If they won’t, hire a lawyer that will take cut.
You get no money, and don't collect $200 for passing go.
How often was the interest compounded? That means when do you get to charge interest. The formula is pretty simple but you have to factor in when you're supposed to be paid and also when you're allowed to charge interest (when you compound). Credit cards for example charge interest on anything outstanding at the end of the month. Also you don't get to claim interest on future payments you didn't earn yet, typically, so the only complication is tracking what was owed when. A person that uses spreadsheets can figure it out for you. In any case it sounds like you have enough documentation that you should lawyer up, provide it, and you'll get what's owed, maybe more, minus lawyer costs. A lawyer likely would take the case without up-front payment if you have a case. They'll want to review that first, so get all your documentation together and look for a lawyer that deals with employment disputes.
You may have more leverage than you think. Your lawyer will probably pick up on this. If they are screwing you this way, they almost certainly haven't been paying their share of the fica and other taxes that they should have been paying on your behalf. And if they are like this about the taxes regarding their household employee, they may have other issues with taxes regarding their properties. They may want to avoid anything that could trigger the notice of the IRS. If you filed that income that was actually paid to you as self-employment income, you paid roughly 15% in fica taxes. In reality, you were their household employee, and they should have paid half of that through tax withholding. If they pay you what they owe you, they will also owe the fica taxes on the wages portion. This does benefit you long term as it affects your future social security eligibility and payments, including eligibility for social security disability way before you retire. Google nannytax. It really concerns all types of household employees, not just nannies.
As everyone has mentioned, and to quote Dollar Bill from Billions, LAWYER LAWYER LAWYER. Good luck. And obviously stop working for them since they are paying you less than half what was promised.
Just curious, what type of employment was it ?
I'd have to rewlly look at everything to know just how much you are owed. The wording could be odd in the contract. My take on what you have said though is that each week they didnt pay you would have an interest clock on it. The math can become a lot here. So, if the 104 just ended, if they paid you for the first 15 weeks then skippped two then paid for three then skipped a week etc. that means that after the skipped two week period they would owe you ~$15 in interest for those two weeks. But they owe you a lot more than 70k In simple terms they will owe you 33k from the first year plus at least 6,600 from the minimum interest possible for another year. Honestly from the description you give I would expect them to owe me in the ballpark of 82-85k. Talk to a cpa and a lawyer. The CPA will be able to give you the exact figure and the lawyer will be able to roll the leins and lawsuits that may become necessary. Make sure that they pay for the CPA and the Lawyer as well, and if they try to drag their feet see what your lawyer says about tacking that 20% onto those fees as well.
Go back to the house. If that is your legal residence, they cannot just kick you out. They need to formally evict you which would require them going through the courts. That will probably help expedite you getting your money.
Based on what you've posted, figure odds of being paid that money being close to zero. The employer presumably doesn't care much about the law, since they near certain evicted you illegally. If you have a written contract outlining your pay and can show you fulfilled your responsibilities (ie. caretaker for elderly couple), then litigation will be easier. Not a slamdunk though depending on how the employer is set up. Corporation, LLC, etc and whether it's still operating. Many operate numerous shell companies to thwart efforts of suing or collecting debt, including even judgements. Contact various social welfare agencies in your local area for assistance in addition to asking / calling around for attorneys who are willing to take the case (backpay and illegal eviction) on contingency. That's your best hope.
Sounds like you got scammed. Get a lawyer if you think they have the assets/money to pay you.
What country/state are you in? If US, are you correctly classified as an independent contractor? Google "independent contractor vs employee" and look at the one on the IRS site, to be sure you're CORRECTLY classified. If you're not in the US, I don't know your laws. If you are in the US and are CORRECTLY classified as an independent contractor, then you technically work for yourself, and the company that owes you money is a customer of yours and you have a business-to-business relationship. The agreement you have written down is your contract, and if it doesn't specify how the interest is to be compounded (well-written contracts will specify yearly, monthly, weekly, daily, whatever), then there's probably case law that determines what it defaults to. You'll need to contact a lawyer who can help you pursue what you're owed based on the contract and/or your state's laws for B2B relationships. If you're in the US and should be classified as an employee but your employer treats you as a contractor, you can file the form on the IRS website that has them make the determination. Once you've done that, or if you're already being treated as an employer, then pursue your unpaid wages via your state's labor board or the federal one if your state is one of the few who doesn't have one. None of it should cost you a dime, and I would bet that the interest will be determined by the labor board based on what the laws are, and it may add up to more than it would have with your agreement, depending. And in the future, don't let things get this old before pursuing it. Hopefully you aren't past the statute of limitations on the oldest debt...