Court Reporter Payment Delays – What California Law Says and How to Respond When Agencies Stall

Posted bystenoimperiumPosted inUncategorizedTags:, , , ,

In the world of freelance court reporting, payment disputes are an all-too-common headache. One of the most frustrating scenarios is when a court reporting agency delays payment to the reporter because they themselves haven’t been paid by the attorney or law firm requesting the transcript. For years, this practice left reporters in financial limbo, despite fulfilling their duties and delivering transcripts on time. However, recent legislative changes in California have made it clear: this practice is now illegal — at least within the Golden State.

If you’re a court reporter working on California cases — even if you live and work in another state — here’s what you need to know about your rights, what the law says, and how you can take action when agencies dodge timely payment.

The Problem: “We’ll Pay You When We Get Paid”

Many court reporting agencies have operated on a flawed (and arguably unethical) model: they don’t pay the reporter for copies or original transcripts until they get paid by their client. This might sound like a reasonable business practice on the surface, but for independent contractors — many of whom rely on regular payment to pay rent, health insurance, or other bills — it’s an unstable, unfair, and potentially exploitative situation.

Some agencies may take 60, 90, or even 120 days to pay, if at all. Worse still, some reporters find themselves chasing agencies for months with no clear answer or transparency, especially when dealing with out-of-state or international firms.

The Legal Shift: California Senate Bill 241

In response to these widespread concerns, California Senate Bill 241 (SB 241) was passed and signed into law. This bill provides long-needed protection for freelance deposition reporters working in California.

Here’s what SB 241 mandates:

  • Prompt payment: Court reporting firms must pay reporters within a reasonable timeframe — typically 30 days from the date of delivery or per the terms of the agreement — regardless of whether the agency has received payment from its client.
  • No contingency-based payments: Payment cannot be delayed based on the agency’s own cash flow, collections, or payment status with the attorney or party who ordered the transcript.
  • Freelancer rights enforcement: Reporters can file complaints with the Court Reporters Board of California if agencies violate these rules.
  • Statewide application: If a case is venued in California — even if the reporter or agency is out-of-state — California law still applies.

This legislation aims to uphold the dignity and financial security of freelance professionals, especially as the industry trends toward gig work and independent contracting.

Read the Fine Print: Legal Protection Requires Action

While SB 241 is a major win, it’s important to understand its limitations. The law establishes what should happen — but it doesn’t guarantee that reporters will automatically be paid. In fact:

  • There is no built-in enforcement mechanism that forces agencies to comply. If an agency fails to pay on time, it’s up to the reporter to pursue legal remedies.
  • In most cases, the reporter must file a civil claim — often in small claims court — to recover their fees.
  • Having a contract or at least written documentation (such as an invoice, email confirmation, or terms agreement) is essential. Without this, enforcing your rights may be difficult.

So while the law is on your side, you still need to protect yourself proactively. Don’t assume that citing SB 241 will resolve every issue without follow-through.

Why This Matters

Let’s be clear: reporters are professionals, not lenders. They provide a highly specialized and critical service to the legal system. When they deliver accurate and timely transcripts, they’ve completed their job. Holding their compensation hostage while waiting on law firms to pay is not only unfair — it’s now illegal in jurisdictions like California.

Further, delayed payment isn’t just an inconvenience. For many freelancers, it can mean falling behind on bills, being unable to make equipment upgrades, or choosing between health insurance and groceries. Inconsistent pay undermines the sustainability of the profession and pushes skilled reporters out of the industry.

What You Can Do If an Agency Delays Payment

If you’ve found yourself in the unfortunate position of waiting — and waiting — for a check, here’s how you can proceed:

1. Review the Case Details

  • Was the deposition conducted for a California case?
  • Was the agency operating in California or facilitating a deposition governed by CA laws?
  • Was there a clear agreement or invoice with payment terms?

If yes, then California’s payment laws likely apply, even if you’re based in another state.

2. Document Everything

Keep a thorough paper trail:

  • Date transcript was delivered
  • Date invoice was sent
  • All email or text communication
  • Any acknowledgment from the agency regarding receipt

This documentation will be crucial if you escalate the matter.

3. Follow Up Regularly

Send friendly but firm reminders. A typical escalation might look like:

  • Week 1: Send a follow-up asking for payment status.
  • Week 2-3: Reiterate your payment terms and include the delivery date.
  • Week 4: Notify the agency that you’re considering further action if payment isn’t made within a set number of days.

4. Send a Demand Letter

If it’s been 30 days or more and you still haven’t been paid, send a formal demand letter. This should include:

  • Summary of the work performed
  • Total amount due
  • Date payment was due
  • A final deadline before further steps are taken (e.g., reporting to regulatory boards, small claims court, or collections)

5. File a Complaint

If the agency is based in or working on a case venued in California, you can file a complaint with the Court Reporters Board of California. Visit their website for a complaint form and submission guidelines.

6. Consider Small Claims Court

If the amount owed is significant (and especially if the agency is based in the U.S.), you might consider filing in small claims court. Many freelancers have successfully recovered fees this way, especially when backed by a well-documented case.

How to Protect Yourself in the Future

Unfortunately, these situations can be more common than they should be. Here are a few ways to protect yourself moving forward:

  • Vet agencies carefully: Look for payment reviews from other reporters. Ask around in reporter forums or state associations.
  • Use written agreements: Spell out payment terms, deadlines, and consequences for non-payment in writing.
  • Invoice immediately: Don’t wait — invoice as soon as the job is done.
  • Set late fees: Include reasonable late fees in your contracts to discourage delays.
  • Avoid red flags: If an agency is vague about payment terms or evades questions, think twice before accepting the job.

Beyond California: A Nationwide Need for Reform

While California’s SB 241 is a step in the right direction, there are 49 other states where court reporters still face the same outdated and unfair payment practices. The lack of consistent nationwide protection leaves too many freelancers vulnerable to delays, non-payment, and financial stress.

It’s time for a broader conversation — and nationwide reform — that ensures all court reporters, no matter where they live or work, are paid fairly and promptly for their services. Until then, reporters in other states will need to rely on contracts, community knowledge, and legal action to protect themselves.

Final Thoughts

California’s new law is a major step forward in protecting freelance court reporters from unfair and exploitative payment practices. But laws only work when they’re enforced — and that means reporters need to be empowered with information and ready to act when their rights are violated.

Whether you’re based in California or simply covering a California case, don’t let agencies string you along with vague promises or excuses. You’ve done the work — now you’re entitled to get paid.

If you’re dealing with a slow-paying agency now and need help crafting a professional follow-up or demand letter, feel free to reach out. You’re not alone, and you deserve to be compensated for your work.

Published by stenoimperium

We exist to facilitate the fortifying of the Stenography profession and ensure its survival for the next hundred years! As court reporters, we've handed the relationship role with our customers, or attorneys, over to the agencies and their sales reps.  This has done a lot of damage to our industry.  It has taken away our ability to have those relationships, the ability to be humanized and valued.  We've become a replaceable commodity. Merely saying we are the “Gold Standard” tells them that we’re the best, but there are alternatives.  Who we are though, is much, much more powerful than that!  We are the Responsible Charge.  “Responsible Charge” means responsibility for the direction, control, supervision, and possession of stenographic & transcription work, as the case may be, to assure that the work product has been critically examined and evaluated for compliance with appropriate professional standards by a licensee in the profession, and by sealing and signing the documents, the professional stenographer accepts responsibility for the stenographic or transcription work, respectively, represented by the documents and that applicable stenographic and professional standards have been met.  This designation exists in other professions, such as engineering, land surveying, public water works, landscape architects, land surveyors, fire preventionists, geologists, architects, and more.  In the case of professional engineers, the engineering association adopted a Responsible Charge position statement that says, “A professional engineer is only considered to be in responsible charge of an engineering work if the professional engineer makes independent professional decisions regarding the engineering work without requiring instruction or approval from another authority and maintains control over those decisions by the professional engineer’s physical presence at the location where the engineering work is performed or by electronic communication with the individual executing the engineering work.” If we were to adopt a Responsible Charge position statement for our industry, we could start with a draft that looks something like this: "A professional court reporter, or stenographer, is only considered to be in responsible charge of court reporting work if the professional court reporter makes independent professional decisions regarding the court reporting work without requiring instruction or approval from another authority and maintains control over those decisions by the professional court reporter’s physical presence at the location where the court reporting work is performed or by electronic communication with the individual executing the court reporting work.” Shared purpose The cornerstone of a strategic narrative is a shared purpose. This shared purpose is the outcome that you and your customer are working toward together. It’s more than a value proposition of what you deliver to them. Or a mission of what you do for the world. It’s the journey that you are on with them. By having a shared purpose, the relationship shifts from consumer to co-creator. In court reporting, our mission is “to bring justice to every litigant in the U.S.”  That purpose is shared by all involved in the litigation process – judges, attorneys, everyone.  Who we are is the Responsible Charge.  How we do that is by Protecting the Record.

Leave a comment