Is my former employer responsible for disbursing my profit sharing funds?

Unpaid profit sharing money is generally covered under wage and hour laws, which means that there are a number of resources available to you if the money is not paid in a timely manner. One option is to contact the state department that handles employment in the state where you worked, the official title of this department will vary depending on the state.

If your former employer has a home office in another state, you may also want to contact the human resources department in that home office as well as the department of labor in that state. Whether or not the employment or labor department will help you will depend on whether you are a covered employee or not.

If you are a covered employee, the department of labor can pursue unpaid wage claims for you. You may also be able to pursue the money owed to you on your own. The process for obtaining your unpaid funds may differ from state to state. In general, however, you may be able to obtain the severance and unpaid profit sharing that is owed to you through legal arbitration or by otherwise making a claim against your employer under employment laws and labor laws.

You’ll need to be able to provide proof that not only did you work for the employer you’re seeking reimbursement from, but that the employer owes you profit sharing that hasn’t been paid. In many cases, the burden of proof that the employer paid will be on the employer. If the employer is unable to prove this, you should be successful at collecting the money owed to you. You will also need to prove that the company did in fact generate a profit during your employment, showing that you are entitled to receive a profit sharing reimbursement.

Case Studies: Recovering Unpaid Profit Sharing Funds From Former Employers

Case Study 1: Department of Labor Intervention

An employee discovered that their former employer had failed to disburse their entitled profit sharing funds upon leaving the company. The employee contacted the state department responsible for employment matters and filed a complaint regarding the unpaid funds.

The department of labor intervened, conducted an investigation, and determined that the former employer had violated wage and hour laws. As a result, the department of labor successfully pursued the unpaid wage claim on behalf of the employee, resulting in the disbursement of the profit sharing funds.

Case Study 2: Legal Arbitration

In another case, an employee sought legal recourse to recover their unpaid profit sharing funds. The employee engaged in legal arbitration, presenting evidence that they had worked for the employer and were entitled to receive profit sharing that had not been paid.

The burden of proof was on the employer to demonstrate that the profit sharing had been disbursed, but they failed to provide adequate evidence. As a result, the employee was successful in their claim and received the outstanding profit sharing funds through the arbitration process.

Case Study 3: Direct Reimbursement

A former employee decided to pursue reimbursement for unpaid profit sharing funds independently. They gathered documentation proving their employment and the existence of profit sharing during their tenure. The employee contacted their former employer, presenting their case and demanding the disbursement of the owed funds.

Recognizing the strength of the employee’s claim and the potential legal consequences, the employer agreed to reimburse the profit sharing funds directly to the employee, avoiding any further legal action.