Compensation Withheld

[Yovanoca]

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]

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]

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]

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]

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]

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.

[Yovanoca]

The agency is a state contracted agency and payment comes from Medicaid not the client. Therefore the agency has been paid for the services. There is no stipulation in the contract that as the independent contractor I am responsible for ensuring all signed documentation has been received. This issue just started and pay has never been withheld for this reason and again there is no amendment to the contract.

[Mr. Knowitall]

If the paperwork at issue is preventing the agency from collecting from Medicaid, then the agency has not been paid. You haven't bothered to describe the paperwork at issue, nor have you bothered to share any relevant language from your contract, and you have to do both if you want us to do more than guess.

Apparently you are satisfied that you are an independent contractor, in which case you can stop working for any given client at any time you choose, and can sue deadbeat clients for any money they owe you.