That would be about compensation for the contracted firm itself though, which would make sense. I may have misunderstood the story as Google HR getting involved because the contracted firm did not pay an employee of the contracted firm.
The employer pays the contracting firm based on the timesheet, then the contracting firm pays the employee based on the timesheet/pay they were forwarded.
When there's a problem with the employee not being paid, the root cause often goes back to the employer blocking the pay in the first place.