Can my employer withhold payment after I gave notice?

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Can my employer withhold payment after I gave notice?

I’m a psychotherapist, and I get paid a percentage of what insurance companies
pay for my services. Because insurance payments are complicated, I often have
payments for services rendered coming in up to 3 months after the appointment.
In my contract I have with my employer, it states that they will stop paying me
for my services 30 days after I have given my notice. Which means I could
potentially have 100’s of dollars they keep for services I provided. Is this
legal? Can they keep all of the insurance payments?

Asked on March 24, 2019 under Employment Labor Law, Minnesota

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

It is legal because, as you write, "In my contract I have with my employer, it states that they will stop paying me for my services 30 days after I have given my notice." You contractually agreed to not be paid outstanding balances still due you a month or more after your employment ends; such a contractual agreement is legal and enforceable.


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