My company provides hourly workers to other company ("1st middlemen"). Then the company ("customer") who needs the workers hires "our" workers from "1st middlemen" and pays to the "1st middlemen" their hourly rate. This sounds like a convoluted setup, but it is common in the IT consulting area.
"1st middlemen" take their commission and pay remaining portion to us. We, in turn, have these workers as regular employees, so we pay the workers their salary, insurance, and other expenses.
The company (1st middlemen) filed for bankruptcy. After this, they received a regular payment from the "customer". Instead of sending the money minus their commission to us, they sent it to the bankruptcy court.
Were they correct? Should these payments be considered as their debt to us or (as I think) the "1st middlemen" were bailees (like someone who transfers a merchandise for others) for the payments due to us, and they had to forward the money to us?
We have already paid the workers their salary; the amount is not big enough (about $4000) to hire a lawyer.
Please advise.
Thank you.
Al
"1st middlemen" take their commission and pay remaining portion to us. We, in turn, have these workers as regular employees, so we pay the workers their salary, insurance, and other expenses.
The company (1st middlemen) filed for bankruptcy. After this, they received a regular payment from the "customer". Instead of sending the money minus their commission to us, they sent it to the bankruptcy court.
Were they correct? Should these payments be considered as their debt to us or (as I think) the "1st middlemen" were bailees (like someone who transfers a merchandise for others) for the payments due to us, and they had to forward the money to us?
We have already paid the workers their salary; the amount is not big enough (about $4000) to hire a lawyer.
Please advise.
Thank you.
Al