New York - Late Wages

April 7, 2006 9:58 AM

Do I have any recourse against my employer, who keeps paying me late?

I work for a small private school in New York state (not New York City). Friday, March 23rd was a scheduled payday. At the end of my shift, when I normally collect my paycheck, the office personnel informed me that the checks were not available, and that we would be paid on Monday or Tuesday. On Monday, no check, and we were advised that they were waiting for a bank deposit to clear. On Tuesday, no check. Every day I complained and insisted that I needed to be paid. On Wednesday, my boss called me into the office and gave me my check, explaining that she'd told the big boss that I was desperate for it but that I shouldn't tell the other employees that I had been paid, because they still didn't have enough money to pay everyone else. Finally, everyone else was paid on Friday, a week late.

Of course this was all infuriating, but once everyone got paid I thought the problem was resolved. Until today, the next scheduled payday. Again, when I went to get my check, and it was not available! Obviously I'm looking for another job, but I am furious that I'm being trampled on like this in the meantime. Is there anything I can do about these short term delays in payment? Or is any type of action I might take moot once they finally do pay me, albeit a few days or a week late? Thank you.

posted by light bulb to law & government (23 comments total)

Can you sign up for direct deposit?
posted by k8t at 10:05 AM on April 7, 2006

IANAL, but I'm guessing it's breach of contract, no? Are the terms of your pay periods spelled out explicitly in your contract (e.g., first and third Friday of the month, or whatever)? Talk to an employment lawyer.
posted by dirtynumbangelboy at 10:07 AM on April 7, 2006

I'd be more worried about the solvency of the school and the future of your employment there. Sounds to me like they are going under...or someone's skimming the pot.
posted by Thorzdad at 10:10 AM on April 7, 2006

Direct deposit is not available.
The contract doesn't specifically say we'll be paid every other Friday, but I've worked there for two years...everyone just knows that every other Friday is pay day.
posted by light bulb at 10:13 AM on April 7, 2006

If they don't have the money, they don't have the money. Would you rather deposit a paycheck, write your own checks on that money, then have your paycheck bounce, along with your own?

Most small private schools are having money problems. If you feel 'called' to teach in that environment, you'll have to deal with it - otherwise, get out.
posted by DandyRandy at 10:13 AM on April 7, 2006

Most states will have a Department of Labor or Employment. If you're not being paid properly, you can file a wage complaint and your employer can be subject to various fines and penalties. Most states lay out the procedure very clearly and have people on hand who are more then happy to assist you. But yes, really the best thing to do at this point is to get out of there and quickly.
posted by zachlipton at 10:16 AM on April 7, 2006

What you mean by recourse? If you mean make them pay you on time, then probably not (assuming that they're telling the truth when they say that the money's not there). I'm sure that there are complaints you can file with some government agency, but that still doesn't make the school have enough money.

Be careful going forward. Plan for the possibility that the school is going under and you're not going to get paid again.
posted by winston at 10:19 AM on April 7, 2006

It's illegal not to pay employees their wages due. However, being "illegal" doesn't really affect the one, true fundamental law of business: can't get blood from a stone.

Or in other words, if there's no money, there's no money. No law or judge can make money appear in the school's bank account.

What this means in your case in that at any time, you could be stiffed out of your wages, and there will be NO RECOURSE for you, because there will be NO MONEY. You already seem to be pursuing the right course (finding a new job).
posted by jellicle at 10:22 AM on April 7, 2006

I was in this exact situation once. The school relied on a weekly Bingo night to meet operating expenses, so when the paychecks started coming late (due to lack of funds), I organized all my friends and we played Bingo every week. We had a lot of fun, and the money we would have spent going out somewhere else helped me get paid.

Maybe not applicable to you, but it worked for me.
posted by ewagoner at 10:33 AM on April 7, 2006

Look up "constructive dismissal". Can you afford to live on unemployment insurance benefits? If so, I would consider quitting your job and filing for unemployment. If you quit because you're not being paid, you'll usually get it. (check with NYS dept of labor first, IANAL, etc)
posted by crazycanuck at 10:37 AM on April 7, 2006

I do think you should contact the New York State department of Labor. The school is a business, and it is subject to the same rules as any other business.

Are they saying that there's some weekly or monthly influx of cash that allows them to meet payroll? If they are, then they have to adjust when they pay some other bills to make sure the employees get paid on time. This is mismanagement.
posted by Kirth Gerson at 11:14 AM on April 7, 2006

I don't know about NY, but in CA, the labor board (or whoever) takes this very seriously. If, for example, there is some kind of clerical error resulting in a delay in the delivery of checks, companies are expected to back an armored truck up to the door and pay their employees in cash on pay day.
Call the suggested government agencies.
posted by clh at 11:44 AM on April 7, 2006

I was really mad when I wrote the question. I love the school and its purpose, and I don't want to hurt the school itself, but I am continually frustrated by the bad management and complete lack of organization. I hate to even quit, because I do love my work and the kids, but it looks like working there is a luxury I can no longer afford. So, I don't actually want them to be fined or whatnot, but I just want to know what I can threaten them with so they'll just pay me.
I assume the deposit they're always waiting on comes from the students' monthly tuition.
posted by light bulb at 11:50 AM on April 7, 2006

Thank you for all your answers. I will be contacting the Department of Labor.
posted by light bulb at 11:51 AM on April 7, 2006

Speaking as an employer, I'd be very concerned about the school's viability.

Any company that doesn't have enough float to cover payroll is in real nasty shape. If it continues, expect unpleasant cutbacks of some sort.
posted by I Love Tacos at 12:54 PM on April 7, 2006

Tell them you're in a jam and you really need the cheques. You don't care if they don't pay anyone else. (If the other people are so benevolent as to put up with this, you can't take that on.) Investigate your rights with the Department or Labor (or whatever it is in NY). It may be that they have x days to pay you and are still within their rights. However, in the meantime, start primping your resume and evaluate your options. The school may not be viable. If it goes under, you may be last on the list to be paid -- after all the other creditors. Are you a contractor? If they go under, file a claim right away. If you're an employee, you might be last to get paid (if there's money left).

I've also heard that some cheque-cashing outfits will give you money and not charge you if the cheque bounces -- they'd go after your employer. But I don't know if that's true.

IANAL.
posted by acoutu at 1:52 PM on April 7, 2006

I Love Tacos: "Speaking as an employer, I'd be very concerned about the school's viability."

Yeah... I should have added to the end of my story. I left for another job after that year of teaching, tought a single class the following year (as a volunteer), and watched the school close its doors the year after that.
posted by ewagoner at 1:54 PM on April 7, 2006

One of the largest costs any small business has is staff. Paying everyone on the same day takes quite a bit of fiscal responsibility as well as real dollars.

I worked for a small company that, because they didn't bill monthly (payments came in when they came in), used a staggered pay schedule. Half the employees got paid the 1st and 15th, the other half the 8th and 21st (or something like that, it was the 90's).

This worked quite well, as they didn't have to accumulate so much money each month, but rather weekly. It was just easier for them. Maybe you could suggest to HR they try that? It's not for everyone, but it's an option.
posted by mattoly at 2:01 PM on April 7, 2006

If you continue working there, you might want to consider getting your check cashed at the bank it is drawn from, assuming it is different from your own. This way you get cash that you can deposit in your account (at a different bank). If the school has insufficient funds, you will know immediatly and not bounce any checks at your bank.

wife of 445supermag
posted by 445supermag at 2:38 PM on April 7, 2006

This tactic is common for small businesses that are having trouble balancing the books. Whether you want to put up with it or not is your decision, I'm afraid. If it were me I'd expect my boss to have a frank conversation with me about company finances.

You should independently doublecheck that they are paying your taxes, insurance, and any retirement savings they're deducting from your checks. It's seriously stupid for a business to cheat here, but it happens.
posted by Nelson at 2:50 PM on April 7, 2006

...because they still didn't have enough money to pay everyone else.

Let me add my voice to those saying it's time to jump ship. A school might not close up shop like a business would, but if they can't even pay the employees, then rough times are definitely in this school's very near future. Which means they're in your very near future, too.
posted by CrayDrygu at 3:06 PM on April 7, 2006

I started working for a small .com that had went through a patch of stormy weather and they had done this all the time. The major difference is that the CEO would call everyone into the conference room to warn the employees (to prevent bounced rent checks, etc). Some employees quit out of necessity or frustration. Two years later, once the company turned around, employees from those "dark days" were rewarded with a bonus.

I'll echo what others have said, if your company isn't making payroll on time, there are serious cash flow problems.
posted by Bear at 9:53 PM on April 7, 2006

Thank you for all the answers. I guess it's time to step up the job search, and have a serious talk with the boss on Monday (he conveniently wasn't around when it was time to get the check).
posted by light bulb at 4:11 AM on April 8, 2006