Withholding pay for an error

[vbax]

I am an independent contractor with a company out of Indiana. I live in Alabama. I get paid on a per chart basis. We have compliance reviews and an error rate to meet. I meet my error rate every month. The company has started not paying for charts for an error that the facility reports yet we are in the acceptable error rate. My company is still being paid for that chart from the facility. They are just withholding paying us for that chart. However, any errors found on our compliance review are not deducted. Just doesn't seem right. Can they continue this practice?

 

[army judge]

Sure, they can.

It may nit be fair, but it is usually legal.

As an independent contractor you have very few protections.

Read your contract!!!


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[vbax]

My contract states nothing about docking pay for an error. It just states the amount we are paid per chart.

 

[cbg]

If you are truly an IC, employment laws do not apply - only contract law.

Since we cannot read your contract from here, you'll have to have it reviewed by a contract attorney in your state. But if the contract does not specifically allow pay to be withheld for errors, it is probably a contract breach.

BTW, even if employment law did have jurisdiction here, most states do not allow deductions for errors unless the employee has signed an authorization for the deductions. Alabama has very few wage and hour laws so they *may* be an exception. I offer this just in case it is shown that you should be an employee instead of and IC.

Patricia Young will know the requirements for AL if you turn out to be an employee.

 

[army judge]

My contract states nothing about docking pay for an error. It just states the amount we are paid per chart.

With contractors, the entity that hires you, often makes it up as they go along.

If you believe that you have not been compensated appropriately, you can always sue in small claims court.

That is your only protection.

Think about this.

You earn $500 a week, for example.

You think you've been cheated out of $50.

You sue for the $50.

You win the $50.

The entity that contracted with you, terminates your contract.

You win a battle.

You lose the war.

Was it worth it?

Only you can determine that.

You could try speaking with the employing entity about the problem.

That might put you on their radar as a complainer and whiner.

What do YOU think might happen eventually?

You might want to seek another contract arrangement with another entity?

 

[Patricia_Young]

I am not at all confident that the OP meets the criteria for IC status.
http://www.irs.gov/pub/irs-pdf/p1779.pdf

But even if not, Alabama has no laws regarding offset of gross pay nor any laws regarding deductions from net pay (not sure which is occurring here). Federal laws would therefore apply and the overriding requirement is that the employee must receive at least MW for all hours worked, on a workweek basis, plus any overtime required, free and clear.