The Broker says "You'll be paid when I get paid"

The Broker says "You'll be paid when I get paid"
Posted: Tue Aug 1, 2006 9:13:48 PM

I am an independent water truck owner in the Sacramento, CA area working for a broker who states "You'll be paid (by me) when I'm paid (by the company you're working for)".  It is my understanding that, by law, drivers must be paid within or at 30 days (or at the end of the following month the work was done - i.e., work done in June will be paid at the end of July).  Is this true and a California law or can each broker "set their own rules"?  Other brokers in the area pay in 30 days - on the spot.  If this is legally the case can you direct me to the specific law this covers and the correct California department to contact to verify this broker's legal responsibilities or to complain to?

Thanks for any help!

Rod Earnest

RE:The Broker says
Posted: Tue Aug 1, 2006 9:47:56 PM

Rod,
To the best of knowledge the law or your contract does state that a broker must pay when he is paid. I do not know of any law that you must be paid in 30 or even 60 days. I do not know for sure 100%. I will have to research more to be sure.

RE:The Broker says
Posted: Sat Aug 5, 2006 8:41:20 PM

Thanks, Scott.  

According to other brokers in the area I've spoken to he cannot legally go past 30 days to pay whether he has been paid or not.  I know a few brokers personally and they statedthey had to almost 'mortgage their homes' to pay their drivers at the end of 30 days when they first started their brokerages to comply with the law.   Of course, as their businesses grew they had enough capital (finally) to cover their driver's payments in time but they had (and still do) have to hold enough capital in reserve to ensure they had the funds available to pay every 30 days.

I am checking also with the California State Public Utilities Commission and will call them to see what they say.  Don't know how far I'll get with this state agency, though.

As to him paying when he gets paid (by law) nobody really knows when he gets paid unless he devulges that info, which isn't likely.  I have heard I can put a lien against the company he brokered me out to for monies due then they would go after him if he, in fact, got paid but didn't pay me.  Not quite sure how that would work without seeking legal counsel which is probably the wisest course of action.

Thanks again....

Rod

RE:The Broker says
Posted: Fri Nov 24, 2006 1:59:02 PM

the key word here is broker they can pay or no pay i have been skinned for over 10 grand !! the best thing you can do is use a fowarding company  the good ones only charge 1.5% and they know what brokers not to use!!