Take Steps to Collect Pay From Cash-Poor Firm
Q: I am a college student who worked for a software developer over the summer. After returning to school, my employer contracted with me to continue working on its projects as time allowed. I was to post my hours on its Web site and receive compensation.
But I haven’t been paid. Several employees have confided that the company is out of funds, although it has not filed for bankruptcy protection. These employees also had not received their current paychecks, so I doubt I’ll be getting mine.
What recourse do I have?
--S.R., Mission Viejo
A: You and the other employees have a right to be paid for your work.
If other employees have not been paid their wages, you probably will not be paid either.
You should write a letter to your employer itemizing the exact amounts owed to you and setting a deadline for payment. If you are not successful, you can file a claim with the California Division of Labor Standards Enforcement.
If the company files for bankruptcy, limited priority is given in some circumstances to employee claims for unpaid wages. If the company is totally without funds, you might want to confer with an attorney to determine if there is any possible recourse against the company’s directors or shareholders.
--Don D. Sessions
Employee rights attorney
Mission Viejo
Try Paycheck Delay to End Tardy Time Cards
Q: We are a small agency that employs mostly part-time employees, many of whom do not depend on their small, twice-a-month paychecks. Hardly a pay period goes by when at least one employee is not late with her time sheet, causing extra work for the person doing our payroll.
If an employee misses our due date for turning in the time sheet, can we wait to pay that employee at the next scheduled pay date? The employee would receive one paycheck, rather than two, for the month.
--M.F., Thousand Oaks
A: California law expressly requires that nonexempt employees be paid at least twice monthly. Therefore, you may not delay paying employees merely because they are neglectful in getting their pay sheets in on time.
However, you are allowed to delay payment for work performed between the 1st and 15th of any month until the 26th day of the month in which the work was performed. You also can delay payment for work performed between the 16th and the end of the month until the 10th day of the next month. That gives you 10 days to make sure that all pay records are filled out and turned in. An employee who habitually fails to do so should be disciplined.
--Michael A. Hood
Employment law attorney
Paul, Hastings, Janofsky & Walker
Contribution to Benefit Plan Must Be Honored
Q: Six months ago I left my last employer after giving 30-day notice. Since then I have been unable to convince the company that it has yet to remit to my deferred compensation retirement account the deduction from my last paycheck. Short of seeking an attorney, what agencies or organizations are available to me to apply pressure to my former employer?
--L.D., Santa Barbara
A: You should contact the local office of the Pension and Welfare Benefits Administration of the Department of Labor, which is located in Pasadena. It has brought a number of enforcement actions in the last few years against employers that failed to forward employee contributions to employee benefit plans in a timely manner.
--Kirk F. Maldonado
Employee benefits attorney
Riordan & McKinzie
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If you have a question about an on-the-job situation, please mail it to Shop Talk, Los Angeles Times, P.O. Box 2008, Costa Mesa, CA 92626; dictate it to (714) 966-7873, or e-mail it to shoptalk@latimes.com. Include your initials and hometown. The Shop Talk column is designed to answer questions of general interest. It should not be construed as legal advice. Recent Shop Talk columns are available at https://www.latimes.com/shoptalk.
