If I’m an independent contractor for a medical transcription company, how can I collect what I am owed?

UPDATED: Sep 29, 2022

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If I’m an independent contractor for a medical transcription company, how can I collect what I am owed?

The company is an LLC and is basically a 1-man show. I am owed almost $1700 (from 1 medical office; this is not the total of what the company owes me at this point) but the office that I was contracted for decided 3months ago that they were no longer in need of the company’s services. I am still waiting to get paid the outstanding balance. My company contacted me (via telephone) last week to let me know that the medical office is going bankrupt and has agreed to settle the company invoice for half of the total. My company told me that I would have to settle for half of the pay I am owed or that I would not be paid at all. Is there anything I can do to get paid?

Asked on November 3, 2015 under Employment Labor Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

Yes, you can sue them. The company's difficulties with being paid do not absolve it of its duties to pay you for all work done; even if not paid by their client, they have to pay you, unless your contract said that your pay was dependent on what they collected (or something similar). If that was not the agreement under which you were working, you could sue the LLC for full pay. To win, you'd have to show in court (such as time sheets, emails, text messages, your testimony, etc.) that you did so many hours or days or work and you were supposed to be paid a certain amount for it.

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