Her payments to you were not necessarily illegal, contrary to her text. The term "payment under the table" usually referrs to a payment that was designed to avoid tax liability. If at the end of the year she sends a 1099 to you to pay taxes on it..or alternatively she pays taxes on it, nothign illegal has been done, unless you were a full fledged W-2 employee who filled out tax forms with her. As for the payment, it is possible they could sue you. Oral contracts are allowed in North Carolina, only limited types of contracts are required to be in writing, a contract for personal services is not one of them. The could sue you and it would come down to who's testimony is more compelling. You told us that you agreed to work for her, there was a hiatus, you then went to speak to her, and she gave you a check. You need to be able to testify as to what was said during this meeting and why she would just give you $1,000.00 that you seem to understand you didn't fully earn. If she called it a gift, you are ok. If not, you just have to explain why it was not for more work.
Answered on Dec 11th, 2012 at 1:33 PM