You are entitled to the legal pay you earned even if your employer claims financial inability to pay wages. Filing an unpaid wage claim may seem like a waste of time. But prompt action gives you the best chance of getting paid what you deserve.
Consulting with an experienced employment attorney like Rowdy Meeks Legal Group LLC can help you understand your rights and take appropriate steps to resolve the situation.
Know Your Rights When It Comes To Your Employer’s Financial Inability To Pay Wages
Empower yourself by learning what your rights are under employment laws regarding the obligation of your employer to pay wages for work done. Employer financial difficulty is not typically a valid legal reason to withhold employee wages.
Take Prompt Action
You rely on your paycheck each month, and arriving at the end of the month without money can be devastating. Quick action gives you the best chance of recovering your unpaid wages.
Communicate
The first thing to do is talk with your employer. Hopefully, the employer warned you beforehand, so you were prepared for the shock of not receiving your wages. Regardless of whether the employer told you or not, it’s imperative that you ask the employer about the situation. Seek clarification on the current financial issues and whether the employer plans to protect you and other employees moving forward.
Here are some questions to ask your employer.
- How will you ensure that we continue receiving accurate and timely pay despite your financial challenges?
- Are you exploring alternative solutions to support our pay situation?
- What’s the plan to assist employees facing financial strain due to pay delays?
- When can we expect to receive our overdue pay or back pay?
- Can you assure us that you are committed to resolving these financial issues and ensuring fair compensation for all employees?
Document Everything
Keep records of your working hours, wages, and any communication with your employer about its financial inability to pay wages. Evidence of your current work situation can be helpful when you claim unpaid wages.
File a Wage Claim
If informal negotiations with your employer have been unsuccessful and you still haven’t received your wages, you can file a wage claim with the Department of Labor (“DOL”). Filing an unpaid wage claim alerts the DOL that your employer owes you wages, and they may be able to access any monies they get from the sale of the business and its assets. This is generally your slowest way to collect any unpaid wages due you.
Seek Legal Advice
An experienced employment attorney can assess your situation, and explain your rights and legal recourse. Not only will the right attorney understand the state and federal laws applicable to your case, but they can also represent you in court if you file an unpaid wage lawsuit.
Financial Inability To Pay Wages Can Be a Tricky Situation
If your employer owes you a small amount, it can be difficult to invest in suing for the remaining wages. While legally, you are entitled to wages you’ve earned, whether you can obtain those wages is another matter.
Sometimes, a company or employer can’t pay wages because the business is bankrupt. With a larger corporation, you may be able to file a claim before it files for bankruptcy. It is likely not worth it to pursue unpaid wages against a smaller bankrupt company. But, it is important that you file right away if you do pursue an unpaid wages claim because filing quickly provides you with the best opportunity to recover some or all of your unpaid wages.
Contact An Experienced Employment Attorney
You should immediately take action if your employer refuses to pay your earned wages for any reason including financial difficulty.
If your employer claims financial inability to pay wages, contact Rowdy Meeks Legal Group LLC for a free case evaluation.