What can I do to be sure I am payed the money owed me if my employer requested that I hold my paycheck due to cash flow problems?
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What can I do to be sure I am payed the money owed me if my employer requested that I hold my paycheck due to cash flow problems?
Was told 2 weeks ago that he would take care of this and monies would be in bank, then he goes on business trip and still no funds in bank. I suspect fraud, only to find that he has been convicted of bank and mail fraud in the past.
Asked on October 26, 2010 under Employment Labor Law, Indiana
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
Legally, you have to be paid for work done--the employer can't delay paying you. Practically, sometimes a business has a cash flow crunch, and if you trust the business and feel the crunch is temporary, it's not worth trying to bring a legal action or complaint--just monitor the situation to make sure it's resolved in the time frame you estimated or were led to believe.
If you think there's fraud or the possibility of fraud, that's a different story--and it seems like you have some reason to be concerned. In that case, you might want to contact your state Dept. of Labor right away and/or speak with an attorney who could take action on your behalf (if a group of you were affected, you can retain the attorney jointly to reduce costs). Act quickly; if there's fraud, the longer you wait, the greater the chance all the money will be gone and you won't be able to recover anything.
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