The District of Columbia stopped paying home health care providers after alleging fraud, forcing them to continue working without pay. The court initially ruled the providers likely had a right to payment and issued a temporary order requiring the agency to pay them. However, the court ultimately denied the preliminary injunction because the providers couldn't prove the agency intended permanent termination rather than temporary suspension. This matters to subcontractors because it shows courts are skeptical of claims that payment stops equal contract termination—you need clear evidence of intent to end the relationship, not just a payment interruption.
A temporary payment stop is not the same as contract termination in court's eyes—you must prove the other party intends to permanently end the relationship
Continue performing work during payment disputes carefully; stopping work can hurt your legal position, but working without pay creates financial hardship