Can my employer legally NOT pay me for my time worked/line produced due to their client not paying them for work produced??

I am a full-time independent contractor medical transcriptionist. I am paid piece rate for lines typed. We all received an email from the CEO stating that their client will not pay them for erroneous reports typed by us, therefore the employer will NOT pay us for those lines typed for that incorrect report! Can the employer legally withhold our pay for lines typed/work produced? I have filed a claim with the Dept of Labor last year for not being paid the equivalent of minimum wage per hour after I started working for them as my paychecks gross pay/hours worked per week did not equal min wage!

Asked on June 30, 2009 under Employment Labor Law, Wisconsin

Answers:

N. K., Member, Iowa and Illinois Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Sometimes employers state (either written or verbally) that they will not pay for work that is unacceptable to them or their clients. If you have this kind of agreement with them, then it is probably legal for them to withhold pay for "erroneous reports."

Unfortunately, terms like this are common in freelance/independent contractor situations.


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