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Tina, Attorney
Category: California Employment Law
Satisfied Customers: 33167
Experience:  JD, 17 years experience & recognized by ABA for excellence in employment law.
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I have an ongoing dispute with an agency through which I was

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I have an ongoing dispute with an agency through which I was contracted to provide psychological services in different facilities. He bills Medicare and then sends me 57ish% of the payment. He began paying me fewer and farther between (every 2-3 months) with big gaps in payment.

I finally could not be in this kind of financial situation anymore so I gave my 30 days and quit. I also privately contracted with one of the facilities that he was previously contracted with. He feels I owe him $25,000 in a "no compete" fee. As a result, he has withheld about $22,000 of my payment from Medicare and other insurances. Is this legal?
Hello and welcome,

You were an independent contractor for this company and not an employee?

Customer: replied 5 years ago.



I see.

No, the company is not permitted to withhold such a fee that you have not agreed to pay as this would typically involve a breach of contract claim. Moreover, non-compete agreements are normally illegal in the state of CA, so even if such a fee were required under a contract, it would likely not be enforceable.

Since you were an independent contractor, your recourse would normally involve filing suit against the company for the amount owed in the Superior Court where the company is located.

Because of the amount involved, it would be best to retain a local employment or contracts law attorney to represent you in this matter. A tactfully drafted demand letter from the attorney may be enough to resolve the matter in your favor if the company wishes to avoid a lawsuit.

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