Worked for a company for two months now and still have yet to get a paycheck, what do I do? [closed]

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For two months I have worked for a company. Other than an occasional advance - usually only $40 to $60 at a time - I still havent received a full paycheck. My unpaid time is roughly 200 hours. I am seeking advice on how I should proceed: How can I get paid? How can I decide whether to continue working for them or quit?

salary

share|improve this question

edited Dec 22 '15 at 14:47

GreenMatt

15.6k1465109

asked Dec 22 '15 at 2:01

FJC goat

121

closed as off-topic by Jim G., keshlam, gnat, Dawny33, Jane S♦ Dec 22 '15 at 6:13

This question appears to be off-topic. The users who voted to close gave this specific reason:

• "Questions seeking advice on company-specific regulations, agreements, or policies should be directed to your manager or HR department. Questions that address only a specific company or position are of limited use to future visitors. Questions seeking legal advice should be directed to legal professionals. For more information, click here." – Jim G., keshlam, gnat, Dawny33, Jane S

If this question can be reworded to fit the rules in the help center, please edit the question.

• 
  
  
  

  
  6
  

  
  
  
  
  
  

  
  What country does this apply in? And in a little more detail, what sort of relationship do you hold with the company in question? i.e. contract work, employed full-time, temporary, etc.
  – CKM
  Dec 22 '15 at 2:13
  
  

  
  
  
  


• 
  
  
  

  
  

  
  
  
  
  
  

  
  This is in America, and its supposed to be full time. Some of the hours are overtime and I am still in contact with the owner of the company. but he keeps saying that he has no money to give to me. I stopped working there because whats the point im not going to break my back for a company that wont pay, but i need that money, but i dont know what steps to take to insure that i will get it.
  – FJC goat
  Dec 22 '15 at 2:27
  

  
  
  
  


• 
  
  
  

  
  2
  

  
  
  
  
  
  

  
  At that, this may drift into legal territory where you'd need to get in contact with a labor and employment attorney. U.S. Department of Labor in fact requires that your employer pays you for all hours worked. It's good if you have all your worked hours incl. overtime documented, but here we can't give you legal advice dealing with wage theft.
  – CKM
  Dec 22 '15 at 2:40
  

  
  
  
  


• 
  
  
  

  
  

  
  
  
  
  
  

  
  Yea I understand all that, thank you for your time. Need direction more than legal advice really.
  – FJC goat
  Dec 22 '15 at 2:42
  

  
  
  
  


• 
  
  
  

  
  2
  

  
  
  
  
  
  

  
  @FJCgoat: In the US this is called "wage theft". It is a crime, and it is prosecutable. Consult your local labor office for reporting procedures.
  – Joel Etherton
  Dec 22 '15 at 15:22
  

  
  
  
  

 | 
show 4 more comments

up vote
1
down vote

favorite

For two months I have worked for a company. Other than an occasional advance - usually only $40 to $60 at a time - I still havent received a full paycheck. My unpaid time is roughly 200 hours. I am seeking advice on how I should proceed: How can I get paid? How can I decide whether to continue working for them or quit?

salary

share|improve this question

edited Dec 22 '15 at 14:47

GreenMatt

15.6k1465109

asked Dec 22 '15 at 2:01

FJC goat

121

closed as off-topic by Jim G., keshlam, gnat, Dawny33, Jane S♦ Dec 22 '15 at 6:13

This question appears to be off-topic. The users who voted to close gave this specific reason:

• "Questions seeking advice on company-specific regulations, agreements, or policies should be directed to your manager or HR department. Questions that address only a specific company or position are of limited use to future visitors. Questions seeking legal advice should be directed to legal professionals. For more information, click here." – Jim G., keshlam, gnat, Dawny33, Jane S

If this question can be reworded to fit the rules in the help center, please edit the question.

• 
  
  
  

  
  6
  

  
  
  
  
  
  

  
  What country does this apply in? And in a little more detail, what sort of relationship do you hold with the company in question? i.e. contract work, employed full-time, temporary, etc.
  – CKM
  Dec 22 '15 at 2:13
  
  

  
  
  
  


• 
  
  
  

  
  

  
  
  
  
  
  

  
  This is in America, and its supposed to be full time. Some of the hours are overtime and I am still in contact with the owner of the company. but he keeps saying that he has no money to give to me. I stopped working there because whats the point im not going to break my back for a company that wont pay, but i need that money, but i dont know what steps to take to insure that i will get it.
  – FJC goat
  Dec 22 '15 at 2:27
  

  
  
  
  


• 
  
  
  

  
  2
  

  
  
  
  
  
  

  
  At that, this may drift into legal territory where you'd need to get in contact with a labor and employment attorney. U.S. Department of Labor in fact requires that your employer pays you for all hours worked. It's good if you have all your worked hours incl. overtime documented, but here we can't give you legal advice dealing with wage theft.
  – CKM
  Dec 22 '15 at 2:40
  

  
  
  
  


• 
  
  
  

  
  

  
  
  
  
  
  

  
  Yea I understand all that, thank you for your time. Need direction more than legal advice really.
  – FJC goat
  Dec 22 '15 at 2:42
  

  
  
  
  


• 
  
  
  

  
  2
  

  
  
  
  
  
  

  
  @FJCgoat: In the US this is called "wage theft". It is a crime, and it is prosecutable. Consult your local labor office for reporting procedures.
  – Joel Etherton
  Dec 22 '15 at 15:22
  

  
  
  
  

 | 
show 4 more comments

up vote
1
down vote

favorite

up vote
1
down vote

favorite

For two months I have worked for a company. Other than an occasional advance - usually only $40 to $60 at a time - I still havent received a full paycheck. My unpaid time is roughly 200 hours. I am seeking advice on how I should proceed: How can I get paid? How can I decide whether to continue working for them or quit?

salary

share|improve this question

edited Dec 22 '15 at 14:47

GreenMatt

15.6k1465109

asked Dec 22 '15 at 2:01

FJC goat

121

For two months I have worked for a company. Other than an occasional advance - usually only $40 to $60 at a time - I still havent received a full paycheck. My unpaid time is roughly 200 hours. I am seeking advice on how I should proceed: How can I get paid? How can I decide whether to continue working for them or quit?

salary

share|improve this question

edited Dec 22 '15 at 14:47

GreenMatt

15.6k1465109

asked Dec 22 '15 at 2:01

FJC goat

121

share|improve this question

share|improve this question

edited Dec 22 '15 at 14:47

GreenMatt

15.6k1465109

edited Dec 22 '15 at 14:47

GreenMatt

15.6k1465109

edited Dec 22 '15 at 14:47

GreenMatt

15.6k1465109

15.6k1465109

asked Dec 22 '15 at 2:01

FJC goat

121

asked Dec 22 '15 at 2:01

FJC goat

121

asked Dec 22 '15 at 2:01

FJC goat

121

121

closed as off-topic by Jim G., keshlam, gnat, Dawny33, Jane S♦ Dec 22 '15 at 6:13

This question appears to be off-topic. The users who voted to close gave this specific reason:

• "Questions seeking advice on company-specific regulations, agreements, or policies should be directed to your manager or HR department. Questions that address only a specific company or position are of limited use to future visitors. Questions seeking legal advice should be directed to legal professionals. For more information, click here." – Jim G., keshlam, gnat, Dawny33, Jane S

If this question can be reworded to fit the rules in the help center, please edit the question.

closed as off-topic by Jim G., keshlam, gnat, Dawny33, Jane S♦ Dec 22 '15 at 6:13

This question appears to be off-topic. The users who voted to close gave this specific reason:

• "Questions seeking advice on company-specific regulations, agreements, or policies should be directed to your manager or HR department. Questions that address only a specific company or position are of limited use to future visitors. Questions seeking legal advice should be directed to legal professionals. For more information, click here." – Jim G., keshlam, gnat, Dawny33, Jane S

If this question can be reworded to fit the rules in the help center, please edit the question.

• 
  
  
  

  
  6
  

  
  
  
  
  
  

  
  What country does this apply in? And in a little more detail, what sort of relationship do you hold with the company in question? i.e. contract work, employed full-time, temporary, etc.
  – CKM
  Dec 22 '15 at 2:13
  
  

  
  
  
  


• 
  
  
  

  
  

  
  
  
  
  
  

  
  This is in America, and its supposed to be full time. Some of the hours are overtime and I am still in contact with the owner of the company. but he keeps saying that he has no money to give to me. I stopped working there because whats the point im not going to break my back for a company that wont pay, but i need that money, but i dont know what steps to take to insure that i will get it.
  – FJC goat
  Dec 22 '15 at 2:27
  

  
  
  
  


• 
  
  
  

  
  2
  

  
  
  
  
  
  

  
  At that, this may drift into legal territory where you'd need to get in contact with a labor and employment attorney. U.S. Department of Labor in fact requires that your employer pays you for all hours worked. It's good if you have all your worked hours incl. overtime documented, but here we can't give you legal advice dealing with wage theft.
  – CKM
  Dec 22 '15 at 2:40
  

  
  
  
  


• 
  
  
  

  
  

  
  
  
  
  
  

  
  Yea I understand all that, thank you for your time. Need direction more than legal advice really.
  – FJC goat
  Dec 22 '15 at 2:42
  

  
  
  
  


• 
  
  
  

  
  2
  

  
  
  
  
  
  

  
  @FJCgoat: In the US this is called "wage theft". It is a crime, and it is prosecutable. Consult your local labor office for reporting procedures.
  – Joel Etherton
  Dec 22 '15 at 15:22
  

  
  
  
  

 | 
show 4 more comments

• 
  
  
  

  
  6
  

  
  
  
  
  
  

  
  What country does this apply in? And in a little more detail, what sort of relationship do you hold with the company in question? i.e. contract work, employed full-time, temporary, etc.
  – CKM
  Dec 22 '15 at 2:13
  
  

  
  
  
  


• 
  
  
  

  
  

  
  
  
  
  
  

  
  This is in America, and its supposed to be full time. Some of the hours are overtime and I am still in contact with the owner of the company. but he keeps saying that he has no money to give to me. I stopped working there because whats the point im not going to break my back for a company that wont pay, but i need that money, but i dont know what steps to take to insure that i will get it.
  – FJC goat
  Dec 22 '15 at 2:27
  

  
  
  
  


• 
  
  
  

  
  2
  

  
  
  
  
  
  

  
  At that, this may drift into legal territory where you'd need to get in contact with a labor and employment attorney. U.S. Department of Labor in fact requires that your employer pays you for all hours worked. It's good if you have all your worked hours incl. overtime documented, but here we can't give you legal advice dealing with wage theft.
  – CKM
  Dec 22 '15 at 2:40
  

  
  
  
  


• 
  
  
  

  
  

  
  
  
  
  
  

  
  Yea I understand all that, thank you for your time. Need direction more than legal advice really.
  – FJC goat
  Dec 22 '15 at 2:42
  

  
  
  
  


• 
  
  
  

  
  2
  

  
  
  
  
  
  

  
  @FJCgoat: In the US this is called "wage theft". It is a crime, and it is prosecutable. Consult your local labor office for reporting procedures.
  – Joel Etherton
  Dec 22 '15 at 15:22
  

  
  
  
  

6

6

What country does this apply in? And in a little more detail, what sort of relationship do you hold with the company in question? i.e. contract work, employed full-time, temporary, etc.
– CKM
Dec 22 '15 at 2:13

What country does this apply in? And in a little more detail, what sort of relationship do you hold with the company in question? i.e. contract work, employed full-time, temporary, etc.
– CKM
Dec 22 '15 at 2:13

This is in America, and its supposed to be full time. Some of the hours are overtime and I am still in contact with the owner of the company. but he keeps saying that he has no money to give to me. I stopped working there because whats the point im not going to break my back for a company that wont pay, but i need that money, but i dont know what steps to take to insure that i will get it.
– FJC goat
Dec 22 '15 at 2:27

This is in America, and its supposed to be full time. Some of the hours are overtime and I am still in contact with the owner of the company. but he keeps saying that he has no money to give to me. I stopped working there because whats the point im not going to break my back for a company that wont pay, but i need that money, but i dont know what steps to take to insure that i will get it.
– FJC goat
Dec 22 '15 at 2:27

2

2

At that, this may drift into legal territory where you'd need to get in contact with a labor and employment attorney. U.S. Department of Labor in fact requires that your employer pays you for all hours worked. It's good if you have all your worked hours incl. overtime documented, but here we can't give you legal advice dealing with wage theft.
– CKM
Dec 22 '15 at 2:40

At that, this may drift into legal territory where you'd need to get in contact with a labor and employment attorney. U.S. Department of Labor in fact requires that your employer pays you for all hours worked. It's good if you have all your worked hours incl. overtime documented, but here we can't give you legal advice dealing with wage theft.
– CKM
Dec 22 '15 at 2:40

Yea I understand all that, thank you for your time. Need direction more than legal advice really.
– FJC goat
Dec 22 '15 at 2:42

Yea I understand all that, thank you for your time. Need direction more than legal advice really.
– FJC goat
Dec 22 '15 at 2:42

2

2

@FJCgoat: In the US this is called "wage theft". It is a crime, and it is prosecutable. Consult your local labor office for reporting procedures.
– Joel Etherton
Dec 22 '15 at 15:22

@FJCgoat: In the US this is called "wage theft". It is a crime, and it is prosecutable. Consult your local labor office for reporting procedures.
– Joel Etherton
Dec 22 '15 at 15:22

 | 
show 4 more comments

3 Answers
3

active

oldest

votes

up vote
4
down vote

First off, seek legal help immediately. In the US, you are legally entitled to be paid for your work, and I imagine a lawyer will be able at the least to advise you about things like would it be possible under your circumstances to collect unemployment and how.

Secondly, if there is no legal reason why you shouldn't, you should cut your losses and quit, no two weeks notice if he is still not paying you, and spend your time looking for new work. If your employer truly does not have the money to pay you, it is possible you will never receive the pay he owes you, even if you persue legal action.

share|improve this answer

answered Dec 22 '15 at 3:36

Kai

3,358921

suggest improvements | 

up vote
2
down vote

As a general rule for a situation like this, I recommend having a talk with your boss before doing something more drastic like quitting or bringing legal action. Since you said (in a comment) that you're in contact with the company owner, that is another person to talk with.

In this/these conversation(s), ascertain what is going on and if there is a plan for the company to recover. If there is a plan, find out what it is. During and after these conversations, determine if you believe them, as this is definitely the sort of situation where they have incentive to lie or at least be overly optimistic. You could even ask to see the books, although you shouldn't be surprised if they refuse.

Other things to find out is if the employer has been reporting the payments they've made to state and federal tax agencies, Social Security Administration, etc. Have they been making unemployment insurance payments? If not, and they go out of business, you may have difficulty filing for unemployment.

Also, make it clear that you expect compensation for your work. Ask for a plan for how they are going to pay you what they already owe you, or you can even ask for full payment.

Unfortunately, it seems the company is in a pretty dire situation and it's likely the company will fail. There's no guarantee that you will be paid for your work, even if you bring a legal action and win - if there is no money there, there is nothing to pay you with. If the company goes into bankruptcy you can make a claim as a creditor, but you are likely to get only a fraction of what you are owed; for more details, you probably should get some sort of legal advice. If you are going to make a claim, it will probably be good to be able to state the exact amount owed you, which would be the amount you've earned for your work less the small payments you've received.

All that said, I can't blame you if you choose to leave. It seems the company doesn't have the money to pay you and isn't likely to get it. Putting more work into the company seems unlikely to be rewarded financially. You could choose to continue working for them while seeking employment elsewhere.

If you're willing to continue working there (at least until something else becomes available), insist on a plan for being paid regularly (weekly I'd recommend) in your conversations, with the understanding that failure to pay (or a bounced check) will lead to your immediate departure. Under the circumstances, you might be able to negotiate some sort of additional compensation for continuing to work - this could include an ownership stake in the company, if that is something you would be interested in. It could also include some sort of favored treatment in the case of a business failure - although to make sure this will work you'll need an attorney, and there's the possibility other creditors already have such a preference.

A note: If you're in a contracting situation and are on good terms with the group that hired your employer, you might be able to transfer your employment to a different company. A former co-worker of mine had done that several years before we worked together; the company who originally hired him wasn't making payroll and it looked like they were failing (and did fail eventually); he discussed things with the agency which had contracted with his employer. Ultimately he was hired by a different company, with whom he stayed for several years.

share|improve this answer

edited Dec 22 '15 at 14:39

answered Dec 22 '15 at 4:48

GreenMatt

15.6k1465109

suggest improvements | 

up vote
0
down vote

The only logical thing that you can do is talk to owner. Demand payment immediately. Tell owner that you will call your state's department of labor and file a small claims action. If he doesn't pay you immediately, file your claim IMMEDIATELY. Just with the threat of having to go to court you will probably get paid soon - especially owner doesn't want other employees to get whiff of your action.

You should probably be close to the small claims max or less. You won't have to pay legal fees and your case is open and shut. The only way owner could get out of paying is declaring bankruptcy. If he does, he will have to sell everything, and employees being paid are first in line to get paid.

share|improve this answer

answered Dec 22 '15 at 6:09

blankip

19.9k74781

suggest improvements | 

3 Answers
3

active

oldest

votes

3 Answers
3

active

oldest

votes

active

oldest

votes

active

oldest

votes

up vote
4
down vote

First off, seek legal help immediately. In the US, you are legally entitled to be paid for your work, and I imagine a lawyer will be able at the least to advise you about things like would it be possible under your circumstances to collect unemployment and how.

Secondly, if there is no legal reason why you shouldn't, you should cut your losses and quit, no two weeks notice if he is still not paying you, and spend your time looking for new work. If your employer truly does not have the money to pay you, it is possible you will never receive the pay he owes you, even if you persue legal action.

share|improve this answer

answered Dec 22 '15 at 3:36

Kai

3,358921

suggest improvements | 

up vote
4
down vote

First off, seek legal help immediately. In the US, you are legally entitled to be paid for your work, and I imagine a lawyer will be able at the least to advise you about things like would it be possible under your circumstances to collect unemployment and how.

Secondly, if there is no legal reason why you shouldn't, you should cut your losses and quit, no two weeks notice if he is still not paying you, and spend your time looking for new work. If your employer truly does not have the money to pay you, it is possible you will never receive the pay he owes you, even if you persue legal action.

share|improve this answer

answered Dec 22 '15 at 3:36

Kai

3,358921

suggest improvements | 

up vote
4
down vote

up vote
4
down vote

First off, seek legal help immediately. In the US, you are legally entitled to be paid for your work, and I imagine a lawyer will be able at the least to advise you about things like would it be possible under your circumstances to collect unemployment and how.

Secondly, if there is no legal reason why you shouldn't, you should cut your losses and quit, no two weeks notice if he is still not paying you, and spend your time looking for new work. If your employer truly does not have the money to pay you, it is possible you will never receive the pay he owes you, even if you persue legal action.

share|improve this answer

answered Dec 22 '15 at 3:36

Kai

3,358921

First off, seek legal help immediately. In the US, you are legally entitled to be paid for your work, and I imagine a lawyer will be able at the least to advise you about things like would it be possible under your circumstances to collect unemployment and how.

Secondly, if there is no legal reason why you shouldn't, you should cut your losses and quit, no two weeks notice if he is still not paying you, and spend your time looking for new work. If your employer truly does not have the money to pay you, it is possible you will never receive the pay he owes you, even if you persue legal action.

share|improve this answer

answered Dec 22 '15 at 3:36

Kai

3,358921

share|improve this answer

share|improve this answer

answered Dec 22 '15 at 3:36

Kai

3,358921

answered Dec 22 '15 at 3:36

Kai

3,358921

answered Dec 22 '15 at 3:36

Kai

3,358921

3,358921

suggest improvements | 

suggest improvements | 

up vote
2
down vote

As a general rule for a situation like this, I recommend having a talk with your boss before doing something more drastic like quitting or bringing legal action. Since you said (in a comment) that you're in contact with the company owner, that is another person to talk with.

In this/these conversation(s), ascertain what is going on and if there is a plan for the company to recover. If there is a plan, find out what it is. During and after these conversations, determine if you believe them, as this is definitely the sort of situation where they have incentive to lie or at least be overly optimistic. You could even ask to see the books, although you shouldn't be surprised if they refuse.

Other things to find out is if the employer has been reporting the payments they've made to state and federal tax agencies, Social Security Administration, etc. Have they been making unemployment insurance payments? If not, and they go out of business, you may have difficulty filing for unemployment.

Also, make it clear that you expect compensation for your work. Ask for a plan for how they are going to pay you what they already owe you, or you can even ask for full payment.

Unfortunately, it seems the company is in a pretty dire situation and it's likely the company will fail. There's no guarantee that you will be paid for your work, even if you bring a legal action and win - if there is no money there, there is nothing to pay you with. If the company goes into bankruptcy you can make a claim as a creditor, but you are likely to get only a fraction of what you are owed; for more details, you probably should get some sort of legal advice. If you are going to make a claim, it will probably be good to be able to state the exact amount owed you, which would be the amount you've earned for your work less the small payments you've received.

All that said, I can't blame you if you choose to leave. It seems the company doesn't have the money to pay you and isn't likely to get it. Putting more work into the company seems unlikely to be rewarded financially. You could choose to continue working for them while seeking employment elsewhere.

If you're willing to continue working there (at least until something else becomes available), insist on a plan for being paid regularly (weekly I'd recommend) in your conversations, with the understanding that failure to pay (or a bounced check) will lead to your immediate departure. Under the circumstances, you might be able to negotiate some sort of additional compensation for continuing to work - this could include an ownership stake in the company, if that is something you would be interested in. It could also include some sort of favored treatment in the case of a business failure - although to make sure this will work you'll need an attorney, and there's the possibility other creditors already have such a preference.

A note: If you're in a contracting situation and are on good terms with the group that hired your employer, you might be able to transfer your employment to a different company. A former co-worker of mine had done that several years before we worked together; the company who originally hired him wasn't making payroll and it looked like they were failing (and did fail eventually); he discussed things with the agency which had contracted with his employer. Ultimately he was hired by a different company, with whom he stayed for several years.

share|improve this answer

edited Dec 22 '15 at 14:39

answered Dec 22 '15 at 4:48

GreenMatt

15.6k1465109

suggest improvements | 

up vote
2
down vote

As a general rule for a situation like this, I recommend having a talk with your boss before doing something more drastic like quitting or bringing legal action. Since you said (in a comment) that you're in contact with the company owner, that is another person to talk with.

In this/these conversation(s), ascertain what is going on and if there is a plan for the company to recover. If there is a plan, find out what it is. During and after these conversations, determine if you believe them, as this is definitely the sort of situation where they have incentive to lie or at least be overly optimistic. You could even ask to see the books, although you shouldn't be surprised if they refuse.

Other things to find out is if the employer has been reporting the payments they've made to state and federal tax agencies, Social Security Administration, etc. Have they been making unemployment insurance payments? If not, and they go out of business, you may have difficulty filing for unemployment.

Also, make it clear that you expect compensation for your work. Ask for a plan for how they are going to pay you what they already owe you, or you can even ask for full payment.

Unfortunately, it seems the company is in a pretty dire situation and it's likely the company will fail. There's no guarantee that you will be paid for your work, even if you bring a legal action and win - if there is no money there, there is nothing to pay you with. If the company goes into bankruptcy you can make a claim as a creditor, but you are likely to get only a fraction of what you are owed; for more details, you probably should get some sort of legal advice. If you are going to make a claim, it will probably be good to be able to state the exact amount owed you, which would be the amount you've earned for your work less the small payments you've received.

All that said, I can't blame you if you choose to leave. It seems the company doesn't have the money to pay you and isn't likely to get it. Putting more work into the company seems unlikely to be rewarded financially. You could choose to continue working for them while seeking employment elsewhere.

If you're willing to continue working there (at least until something else becomes available), insist on a plan for being paid regularly (weekly I'd recommend) in your conversations, with the understanding that failure to pay (or a bounced check) will lead to your immediate departure. Under the circumstances, you might be able to negotiate some sort of additional compensation for continuing to work - this could include an ownership stake in the company, if that is something you would be interested in. It could also include some sort of favored treatment in the case of a business failure - although to make sure this will work you'll need an attorney, and there's the possibility other creditors already have such a preference.

A note: If you're in a contracting situation and are on good terms with the group that hired your employer, you might be able to transfer your employment to a different company. A former co-worker of mine had done that several years before we worked together; the company who originally hired him wasn't making payroll and it looked like they were failing (and did fail eventually); he discussed things with the agency which had contracted with his employer. Ultimately he was hired by a different company, with whom he stayed for several years.

share|improve this answer

edited Dec 22 '15 at 14:39

answered Dec 22 '15 at 4:48

GreenMatt

15.6k1465109

suggest improvements | 

up vote
2
down vote

up vote
2
down vote

As a general rule for a situation like this, I recommend having a talk with your boss before doing something more drastic like quitting or bringing legal action. Since you said (in a comment) that you're in contact with the company owner, that is another person to talk with.

In this/these conversation(s), ascertain what is going on and if there is a plan for the company to recover. If there is a plan, find out what it is. During and after these conversations, determine if you believe them, as this is definitely the sort of situation where they have incentive to lie or at least be overly optimistic. You could even ask to see the books, although you shouldn't be surprised if they refuse.

Other things to find out is if the employer has been reporting the payments they've made to state and federal tax agencies, Social Security Administration, etc. Have they been making unemployment insurance payments? If not, and they go out of business, you may have difficulty filing for unemployment.

Also, make it clear that you expect compensation for your work. Ask for a plan for how they are going to pay you what they already owe you, or you can even ask for full payment.

Unfortunately, it seems the company is in a pretty dire situation and it's likely the company will fail. There's no guarantee that you will be paid for your work, even if you bring a legal action and win - if there is no money there, there is nothing to pay you with. If the company goes into bankruptcy you can make a claim as a creditor, but you are likely to get only a fraction of what you are owed; for more details, you probably should get some sort of legal advice. If you are going to make a claim, it will probably be good to be able to state the exact amount owed you, which would be the amount you've earned for your work less the small payments you've received.

All that said, I can't blame you if you choose to leave. It seems the company doesn't have the money to pay you and isn't likely to get it. Putting more work into the company seems unlikely to be rewarded financially. You could choose to continue working for them while seeking employment elsewhere.

If you're willing to continue working there (at least until something else becomes available), insist on a plan for being paid regularly (weekly I'd recommend) in your conversations, with the understanding that failure to pay (or a bounced check) will lead to your immediate departure. Under the circumstances, you might be able to negotiate some sort of additional compensation for continuing to work - this could include an ownership stake in the company, if that is something you would be interested in. It could also include some sort of favored treatment in the case of a business failure - although to make sure this will work you'll need an attorney, and there's the possibility other creditors already have such a preference.

A note: If you're in a contracting situation and are on good terms with the group that hired your employer, you might be able to transfer your employment to a different company. A former co-worker of mine had done that several years before we worked together; the company who originally hired him wasn't making payroll and it looked like they were failing (and did fail eventually); he discussed things with the agency which had contracted with his employer. Ultimately he was hired by a different company, with whom he stayed for several years.

share|improve this answer

edited Dec 22 '15 at 14:39

answered Dec 22 '15 at 4:48

GreenMatt

15.6k1465109

As a general rule for a situation like this, I recommend having a talk with your boss before doing something more drastic like quitting or bringing legal action. Since you said (in a comment) that you're in contact with the company owner, that is another person to talk with.

In this/these conversation(s), ascertain what is going on and if there is a plan for the company to recover. If there is a plan, find out what it is. During and after these conversations, determine if you believe them, as this is definitely the sort of situation where they have incentive to lie or at least be overly optimistic. You could even ask to see the books, although you shouldn't be surprised if they refuse.

Other things to find out is if the employer has been reporting the payments they've made to state and federal tax agencies, Social Security Administration, etc. Have they been making unemployment insurance payments? If not, and they go out of business, you may have difficulty filing for unemployment.

Also, make it clear that you expect compensation for your work. Ask for a plan for how they are going to pay you what they already owe you, or you can even ask for full payment.

Unfortunately, it seems the company is in a pretty dire situation and it's likely the company will fail. There's no guarantee that you will be paid for your work, even if you bring a legal action and win - if there is no money there, there is nothing to pay you with. If the company goes into bankruptcy you can make a claim as a creditor, but you are likely to get only a fraction of what you are owed; for more details, you probably should get some sort of legal advice. If you are going to make a claim, it will probably be good to be able to state the exact amount owed you, which would be the amount you've earned for your work less the small payments you've received.

All that said, I can't blame you if you choose to leave. It seems the company doesn't have the money to pay you and isn't likely to get it. Putting more work into the company seems unlikely to be rewarded financially. You could choose to continue working for them while seeking employment elsewhere.

If you're willing to continue working there (at least until something else becomes available), insist on a plan for being paid regularly (weekly I'd recommend) in your conversations, with the understanding that failure to pay (or a bounced check) will lead to your immediate departure. Under the circumstances, you might be able to negotiate some sort of additional compensation for continuing to work - this could include an ownership stake in the company, if that is something you would be interested in. It could also include some sort of favored treatment in the case of a business failure - although to make sure this will work you'll need an attorney, and there's the possibility other creditors already have such a preference.

A note: If you're in a contracting situation and are on good terms with the group that hired your employer, you might be able to transfer your employment to a different company. A former co-worker of mine had done that several years before we worked together; the company who originally hired him wasn't making payroll and it looked like they were failing (and did fail eventually); he discussed things with the agency which had contracted with his employer. Ultimately he was hired by a different company, with whom he stayed for several years.

share|improve this answer

edited Dec 22 '15 at 14:39

answered Dec 22 '15 at 4:48

GreenMatt

15.6k1465109

share|improve this answer

share|improve this answer

edited Dec 22 '15 at 14:39

edited Dec 22 '15 at 14:39

edited Dec 22 '15 at 14:39

answered Dec 22 '15 at 4:48

GreenMatt

15.6k1465109

answered Dec 22 '15 at 4:48

GreenMatt

15.6k1465109

answered Dec 22 '15 at 4:48

GreenMatt

15.6k1465109

15.6k1465109

suggest improvements | 

suggest improvements | 

up vote
0
down vote

The only logical thing that you can do is talk to owner. Demand payment immediately. Tell owner that you will call your state's department of labor and file a small claims action. If he doesn't pay you immediately, file your claim IMMEDIATELY. Just with the threat of having to go to court you will probably get paid soon - especially owner doesn't want other employees to get whiff of your action.

You should probably be close to the small claims max or less. You won't have to pay legal fees and your case is open and shut. The only way owner could get out of paying is declaring bankruptcy. If he does, he will have to sell everything, and employees being paid are first in line to get paid.

share|improve this answer

answered Dec 22 '15 at 6:09

blankip

19.9k74781

suggest improvements | 

up vote
0
down vote

The only logical thing that you can do is talk to owner. Demand payment immediately. Tell owner that you will call your state's department of labor and file a small claims action. If he doesn't pay you immediately, file your claim IMMEDIATELY. Just with the threat of having to go to court you will probably get paid soon - especially owner doesn't want other employees to get whiff of your action.

You should probably be close to the small claims max or less. You won't have to pay legal fees and your case is open and shut. The only way owner could get out of paying is declaring bankruptcy. If he does, he will have to sell everything, and employees being paid are first in line to get paid.

share|improve this answer

answered Dec 22 '15 at 6:09

blankip

19.9k74781

suggest improvements | 

up vote
0
down vote

up vote
0
down vote

The only logical thing that you can do is talk to owner. Demand payment immediately. Tell owner that you will call your state's department of labor and file a small claims action. If he doesn't pay you immediately, file your claim IMMEDIATELY. Just with the threat of having to go to court you will probably get paid soon - especially owner doesn't want other employees to get whiff of your action.

You should probably be close to the small claims max or less. You won't have to pay legal fees and your case is open and shut. The only way owner could get out of paying is declaring bankruptcy. If he does, he will have to sell everything, and employees being paid are first in line to get paid.

share|improve this answer

answered Dec 22 '15 at 6:09

blankip

19.9k74781

The only logical thing that you can do is talk to owner. Demand payment immediately. Tell owner that you will call your state's department of labor and file a small claims action. If he doesn't pay you immediately, file your claim IMMEDIATELY. Just with the threat of having to go to court you will probably get paid soon - especially owner doesn't want other employees to get whiff of your action.

You should probably be close to the small claims max or less. You won't have to pay legal fees and your case is open and shut. The only way owner could get out of paying is declaring bankruptcy. If he does, he will have to sell everything, and employees being paid are first in line to get paid.

share|improve this answer

answered Dec 22 '15 at 6:09

blankip

19.9k74781

share|improve this answer

share|improve this answer

answered Dec 22 '15 at 6:09

blankip

19.9k74781

answered Dec 22 '15 at 6:09

blankip

19.9k74781

answered Dec 22 '15 at 6:09

blankip

19.9k74781

19.9k74781

suggest improvements | 

suggest improvements |