General Question

deni's avatar

Are there any laws regarding late paychecks, and if so, what are they?

Asked by deni (23141points) February 28th, 2013

I have worked as a server at a restaurant for a year now. We are supposed to be paid on the 1st and the 15th of the month. As the year has passed (when I started it was a new business, so this has been from the beginning) the paychecks have gotten later and later. Usually I have enough in my bank account to pay rent even though my check may be late….but for many people who work there they are relying on their paycheck on the 1st of each month to tie things together and pay their rent with.

At the beginning, checks were on time. As months passed, they started being one day late, two days late, or they would be at the restaurant but the owner hadn’t signed them yet, or he would have them on him rather than in the building available to people when they wanted to pick them up. Now, our paycheck that was due on the 15th, I received mine three days late, and it was dated 2/19! I couldn’t even have cashed it that day if I wanted to, already three days late. My boyfriend, who works with me, did not receive his until a week later. Preposterous. Because I had surgery at the beginning of the month and had 2 weeks off, I am really stretching funds to make rent this month. I need my paycheck tomorrow to pay my rent. I am almost 100% sure it will not be available til, probably judging by past checks, Monday at the earliest. There is always some kind of excuse. Is there anything that can be done about this? I’m worried about it. I’ve also just been wondering about this issue for a while now. Thanks guys.

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16 Answers

JLeslie's avatar

Check the website for your state for labor laws. That’s where I would start.

Aside from law, if an employer has more and more trouble paying their staff, I think it is time to consider finding a new job. Esoecially if you and your SO live together. Working at the same place is always a risk, because if something goes downhill at the company it affects the total income of the household.

burntbonez's avatar

If you are wise, you will be looking for a new job. When a business consistently has trouble making payroll, it means they aren’t generating enough cash. Have you seen fewer customers? How are tips?

It really doesn’t matter what the law is. It matters that you have your own cash flow situation. You can try to fight in court, but if they don’t have the money, they don’t have the money. Find an employer that does have the money.

deni's avatar

Well, I’ve already found a new job and my two weeks notice is in. Regardless though our paychecks are already two weeks behind so I still have another month of worrying about where my money is. It’s a complicated situation @burntbonez because the owner of the restaurant owns a few other very successful things around town. So, he has the money, just not in the restaurants account I guess. He is constantly pulling from his other accounts to buy things for the restaurant or pay people who are demanding cash, whatever, so I know that’s why the paychecks are always an issue. I suppose that’s one thing that makes it more frustrating.

@JLeslie I will check that, didn’t think of it. THanks.

FutureMemory's avatar

Tell your landlord asap that your rent will be late. Explain that you already have a new job and that it will never happen again.

Bellatrix's avatar

I am glad you have found a new job. Paying wages late is a huge red flag the company is in trouble. Is there no Fair Work Ombudsman or something similar the employees can go to and request help or advice on this?

ZEPHYRA's avatar

I agree that it is very inconvenient but at least you DO get the money and nothing is owed to you, right?

ZEPHYRA's avatar

@FutureMemory will it not happen again? It seems like this is what will be happening all the time!

LuckyGuy's avatar

Take this as a sign that the business is failing and start looking elsewhere. .
If you are bold, one entire shift of employees can group together and write a letter or speak with the owner in person. Ask:
Are the checks late because the business is failing or because he is not concerned about the employees and their needs? Which is it?

burntbonez's avatar

I’m glad you’ve gotten a new job. Your two weeks notice is extremely courteous given the problems with pay. I would not feel it necessary to stick it out if you don’t get paid on time. You don’t owe them work you are not getting paid for, and a promise is not pay, especially when the employer is having problems.

The owner may own many businesses, but their accounts are separate, and the fact that other businesses are doing well has nothing to do with one business doing badly. Also, you can’t be sure the others are doing well. The owner can pump cash in to the failing business if he wants, but the fact that he isn’t doing that would seem to indicate the business might fail before your two weeks are up. Then what does your loyalty mean? Especially if you don’t get paid for your last couple of weeks?

jerv's avatar

Generally, 72 hours after the pay period ends unless other, mutually agreeable means are in place. In your case, the 4th and 18th are the limits.

deni's avatar

@LuckyGuy It is partly each I think….though he’s a really good guy and we all really like him, which is part of what makes this difficult, he seems to not entirely realize what it is like living paycheck to paycheck, which I find annoying because this is a restaurant in a college town and rental companies and landlords here are practically expecting late rent, etc. so the late fees are stiff and there’s not much leniency. Not only that but the restaurant is struggling especially this time of year and I know he likes to have a few more days to get the bank accounts up. So I get it, but it’s not our problem. It still becomes our problem though with the constantly late paychecks.

@jerv So what is a person supposed to do after the 72 hour limit, realistically?

jerv's avatar

@deni Generally, getting the state after the employer is about the only official option, and that often causes other issues, so I wouldn’t do that if you like your employer and/or plan to keep your job. Try working it out with him first.

deni's avatar

Right, I do not want to do that. I become tempted sometimes though, since he just “won’t be around” and won’t respond to texts or calls the days he should be bringing us our paychecks. Today for example. Extremely frustrating.

jerv's avatar

Ask him to lend you a few bucks until payday. :D

Seriously though, your options are pretty limited. I suspect there are financial difficulties at that business, and would start polishing my resume.

FYI, when you leave a job, it’s acceptable for them to hold your final check until the next scheduled payday even if that’s weeks after your last day. You agreed to be paid on the 1st and 15th when you started, just like I agreed to be paid every other Thursday.

Bellatrix's avatar

@deni, is your employer supposed to make any other payments on your behalf? Here employers have to pay mandatory superannuation contributions into an account for employees. My daughter was paying extra into her super by having money deducted from her pay. Her employer was taking the money but not paying anything into her super. In the end they went broke and with it went the super she should have had. So, if there are deductions you might want to check with the relevant authorities to ensure those things are or have been paid for you.

Gabby101's avatar

California has very strict laws on this. I once had an employer not pay me my last check, which would have been around $60 and she ended up paying me over $3,000 once all the fines were added. I probably spent a total of 4 hours filing the claim and meeting with the mediator. Well worth it.

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