Late Paychecks

[Gildas]

Hi Shirley,

My paychecks have been late consistently for about a year. I get paid bi-weekly and on average i am 1 check behind but they recently became 2 behind.  That's 4 weeks without pay that is putting an incredible strain on me financially.  

I work for an independent small business(LLC) owned and operated by a husband and wife team. They are behind on many things and the payroll is becoming increasingly harder for them to cover. Calls come in from creditors and collection agency's all the time and the owners are very secretive about our cash flow. My pay is salary plus commission. As of today they are 2 paychecks behind and 5 commission checks behind in paying me. I hold a very high position within the company and have been toughing it out because my departure would surly seal there fate. However, this predicament is now effecting my marriage due to the financial strain. Newly married. No kids.

I also have reason to belive that they are not paying on our health insurance & taxes.

This is the end of the line for me. At this point, i've decided to resign but i know that once i do, i will no longer become a priority in terms of getting the money i am owed.(I also have 4 weeks vacation due to me)

Is there anything i can do to ensure i will get paid?

What legal action can i seek if i don't get what i am owed?

Do i have a legal case on the grounds of late checks?

Your advice is greatly appreciated. Thank you in advance.

ANSWER: You didn't mention your state, however you should right away file a claim for unpaid wages withe the state Department of Labor.

You should also mention to them that you are not sure that the insurance and taxes are being paid.

You can't do anything about the late check you have already been paid, however you can get the money you are now owed.

I do not know if you will be paid the vacation time as it is not required in many states that it be paid. Since I don't know which state you are in I don't know if your state mandates the payment of vacation pay.

If you decide not to go with the department of labor as it takes quite a while for them to take action you can take the employer to small claims court and you can sue them for the unpaid wages. You can also ask the court for the vacation pay, but I do not know if that will be awarded or not.

Even if you quit you should be able to draw unemployment insurance because it was not your fault that you did not get paid and you cannot work for free. That is if they have paid their unemployment insurance premiums.

Shirley

---------- FOLLOW-UP ----------

Hi Shirley, Thank you for taking the time to give me advice. I live in Illinois. I'm glad to hear that i have an option in small claims court but the unemployment insurance might be out of reach.  I recently did get confirmation that our insurance premiums are not getting paid through a co-worker who told me about a letter they received at home regarding declined coverage on insurance. There's little chance that the unemployment insurance is current. Does residency in IL give me any recourse for collecting vacation time?

Thanks in advance.

[Symontun]

A former employee has a claim under the Act for the collection of the monetary equivalent of his/her vacation time earned in accordance with an employment contract, agreement or policy. For more information, click here. 820 ILCS 115/5 and 56 Ill. Adm. Code 300.520.

The above is a copy of an answer to a question on the Illinois DOL. What it means is if in an  employment contract or agreement you are given vacation pay as a condition of your employment than it must be paid upon your termination.

It also mean if the company policy says that vacation pay will be paid out upon termination it must be paid. If the company has paid anyone else their vacation pay upon termination it sets a standard and they must pay vacation time for all terminating employees.

You can contact the Illinois Department of labor for further information, they have an email on their website if you want to email question in. They also have all the wage claim forms including vacation claim for terminating employees.

Their web link is:http://www.state.il.us/agency/idol/

Shirley