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Contract Fines


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Hello,

I'm a first year P.A. who is working in a primary care/urgent care setting which I am currently going to be quitting for multiple reasons (including not training for as long as they said they would, not having the support that they promised,....etc.). I signed a contract with the company as an independent contractor. It was my first contract so I didn't know what exactly to look for (I wish would've consulted on here first). They are saying that I needed to pay $6,000 in fines for credentialing fees and $2,000 in fines back for CME money that was reimbursed. It does say in my contract that if I did break my contract in the first year I would have to pay it back the CME and pay the credentialing fees. One of my colleagues told me that I do not need to pay that back because of 1) They did not give me a signing bonus with the contract and he believes that I only can be fined for a signing bonus and not from my salary. 2) If I'm a independent contractor I am not entitled to pay the credentialing fees which is their responsibility. I'm not sure if these are true. 

 

Also I am wondering for tax purposes, since I'm a 1099 if I do end up having to pay the fines is that deducted from my salary or do I have to pay tax on those fines as well?

 

Thank you for your time and any info would help.

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Not a lawyer here but your colleague doesn't sound like they know what they are talking about.

1. You signed a contract stating you would have to pay/reimburse those fees if you left.  Doesn't matter if you got a signing bonus or not.

2. My experience is that it's quite the opposite - usually 1099 DON'T get their credentialing fees paid for.  It actually doesn't matter anyway.  Regardless of type of employee - your contract says you must pay the fees if you leave.  

As above, get a lawyer.  And maybe an accountant, too.

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Agree that you need to speak with a lawyer, but at the same time do you have any documentation (in contract, emails, etc.) that states how long you would be trained and the support that would be offered?  Then, do you have documentation that proves they did not meet those requirements?

If they already breached the contract then they are at fault and the contract is void.  But, if not in writing you're going to have a tough time proving anything.

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I spoke to several others about it and they agreed with what you guys were saying. I just signed a crappy contract on my end. I could not find any written documentation stating any of the breech in training and support. I'm not sure if it is worth to pay a lawyer for it. I've definitely learned from this. They did agree to deduct it from my salary on my up and coming pay checks so I will not be taxed on it, or did they lie to me about that too?

 

Thanks for all your replies. I really do appreciate it. 

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