Compensation Withheld

**Yovanoca** · 03-07-2012, 12:18 PM

My question involves independent contractors in the state of: GA

Is it legal for an company to withhold compensation for reasons not stipulated in a signed contract. For example, as a mental health therapist, is it legal for an agency to hold your pay because a client hasn't signed some documents?

**Riply** · 03-07-2012, 01:00 PM

It would be important to know whether the agency is a State agency, CHAMPVA, TRICARE, or whether this would be a Medicare-fee-for-service contract to a private provider (or government agency provider).

**cbg** · 03-07-2012, 01:27 PM

It would also be necessary to know whether this is actually an IC or an employee, and if an IC, what the contract says.

**Riply** · 03-07-2012, 01:32 PM

Quoting cbg

It would also be necessary to know whether this is actually an IC or an employee, and if an IC, what the contract says.

I think the OP said IC, but yes, some more specific information would be critical. Especially, as cbg says, the specifics of the contract.

**cbg** · 03-07-2012, 04:33 PM

I know the OP said he was an IC, but there's a great deal of misunderstanding and misinformation among both employers and employees as to who actually can be classified as an IC. I would say at least 50%, if not more, of the posters who have posted here saying that they were IC's eventually were determined to be employees. So I don't take anything for granted.

**Mr. Knowitall** · 03-07-2012, 08:46 PM

It's not particularly unusual for independent contractors to be retained with a contractual provision that they won't get paid until their client gets paid, so if the paperwork is holding up payment to the client that would explain why the independent contractor has not yet been paid. So yes, it's important first to determine if this is an actual independent contractor relationship, perhaps also examining whether the worker is properly classified as an independent contractor, and what the contract provides in relation to payment.

It should also be remembered that payments to independent contractors can be issued on a very different timetable than paychecks, and some clients are slow to pay under the best of circumstances.