Employer can't make payroll this month-a little mojo please?

[zoestargrove]

A few months back our hours were reduced and I knew that things were looking bleak. My husband started another job so that we could switch to his healthcare in the event I get laid off. Still, I was not prepared for it to happen like this. Last night we received an email from our boss (very small company) that there isn't enough money to pay us for December! (monthly paychecks are due Friday the 6th). As in - I am not getting paid for the month I just worked (plus the 1k in expenses I shelled out!)

I'm still hopeful that I will see that money. The company is owed a very large sum of money from a govt. client, but the payment has been stalled for over a year. After political pressure, there has been some movement and a promise to pay-however we don't have a timetable.

Can I call the mortgage company and ask for an extension or will that go against my credit. I don't want to ruin our excellent credit ratings. I think I can make this month's bills but it will be a scramble. Hindsight is 20/20, but I foolishly paid extra on some payments last month hoping to eliminate those debts before I lost my job.

[hopeful_mama]

No BTDT but mojo for you that the bills get paid this month and you get all the money you're due really quickly!

[lmh2402]

sending you lots of mojo and good wishes - what a crappy position to be in.

i really hope the gvt payment comes through very soon :hug:

[brittone2]

Mojo, mojo, mojo coming your way!

[TwoBees]

Oy, how stressful! Sending mojo!

[Mommy_Mea]

Mojo coming your way!

[ahisma]

Sending you tons of mojo!

I think our mortgage company (a regional bank) allows us to request to skip 1 payment a year. We haven't had to do it so I don't know the details. I don't think it can hurt to ask.

I hope that you can get paid soon.

[Binkandabee]

I am so sorry you are in this situation. How terribly unfortunate :(

[Giantbear]

What they are doing is most likely illegal. You can file a civil suit or file a complaint with the department of labor (some state's labor departments are better than others). Not paying employees is a choice your company is making regarding how to best spend their cashflow. Chances are, other bills are being paid, so why should yours not be?

[minnie-zb]

I'm very, very sorry. That really stinks. I don't think it hurts to ask the mortgage company -- it won't impact your credit score to ask.

Apply for unemployment today. It takes a couple of weeks to get it started.

[Green_Tea]

Sending you lots of mojo. My DH works for a very small company (well, for the next 2 weeks anyway) and has been furloughed three separate times this year, no longer has ANY paid time off and was told on Tuesday that he'll be getting a pay cut of $100/week. Like your company, their ability to pay their staff depends on their clients paying their bills.

Sending you LOADS of mojo. I hope it works out that you DO get paid!

[kara97210]

Sending mojo your way. Also I went through something like this years ago with a small company. Definitely leave before it gets worse. I left shortly after this happened, but there were a lot of people who spent the next 6-9 months not knowing if they were going to be paid.

[vonfirmath]

My BIL started looking for a job the first time his company could not pay him on time, even though they hand delivered a check from the president's family (president of the company) within 3 days.

[crl]

How terrible. Good luck!
Catherine

[gibas23]

lots of p&PT and mojo for you. It will get better. Hang in there

[arivecchi]

Sending lots of mojo. I would look into your legal rights as well as suggested by PP. Contact your state's employment commission.

[KrisM]

I hope it works out and you get paid quickly.

[BabbyO]

What they are doing is most likely illegal. You can file a civil suit or file a complaint with the department of labor (some state's labor departments are better than others). Not paying employees is a choice your company is making regarding how to best spend their cashflow. Chances are, other bills are being paid, so why should yours not be?

I was wondering about this? Sounds illegal to me, too, but I really don't know about these things.

[plusbellelavie]

I am so sorry! I am sending you lots of mojo and positive thoughts!

[larig]

Big mojo and hugs. I hope that payment comes through soon for your company.

[HannaAddict]

I was wondering about this? Sounds illegal to me, too, but I really don't know about these things.

It is illegal in our state and I would bet all 50. Wages are a big, big deal and there are criminal penalties for allowing people to work and not paying them and often civil penalties like double or treble damages. Don't they have a credit line? Or if really small, the boss needs to close up shop and not have people coming in when he can't pay. This is so not fair, I am so sorry. Hang in there. If you think there is a chance the money is not coming or the end is near, I would think about filing for unemployment, you can claim it if you are basically laid off since you weren't being paid. How awful.

[kijip]

I have had friends in your shoes. If they truly have no cash to pay you they never should have let it go this long. They should have released you sooner to ensure they did not steal labor. Report them to the state immediately. Here, they will step in and make them pay as much as they can in their wage liability. I would not work for them any longer as you don't know when/if you will see a paycheck. sorry. That is terrible.

[TwinFoxes]

I agre with PP. The company will try to guilt you into being loyal. But when they file for bankruptcy you will just be another in a long list of creditors probably. If you get the state involved you have a better chance of getting your cash. That sucks.

Since layoff is imminent I'd say, start conserving cash NOW. Cut the extras, don't pay extra, etc.

Sending major mojo your way. And he sent an email? Coward. If ever there should have been an all staff meeting, this was the time.

[MoJo]

MoJo here for you!

When I was sort of in your shoes several years ago, the boss who couldn't pay us DID offer to give a portion of our pay. . . I don't know if that's a possibility?

In my case, I started job searching as soon as I was working without pay. I ultimately did get paid without going to court or other means, but I left the company (that was an easy interview question: "Why are you leaving the company?" "Because they aren't paying me!"), and it was less than a year before the company was gone.

[arivecchi]

OP, I would start here: http://www.mass.gov/lwd/labor-relations/dlr/.

You should also call the attorney general's office. Here is a good summary of the issue, but I am not in any way recommending this law firm: http://www.davisanddavispc.com/pages/wageandhour.htm. I would contact the state agencies first.

Ok, just found this: http://www.mass.gov/ago/docs/workplace/wageandhour-complaintform.pdf

[Kymberley]

Mojo!!! I'm sorry you are going through this!

[Roleysmom]

Mojo coming your way! This is so terrible. I wish you the best of luck.

[gibas23]

lots of mojo coming your way..that is horrible

[zoestargrove]

thank you! What an amazing roller coaster ride of emotion I am going through. I think I was in shock for a day, now I'm just angry. Last night I couldn't sleep and my stomach was so tied in knots with nauseau that I was throwing up. I'm reading the links that were provided by pp. (THANK YOU Arrivecchi!!) so I can be ready for the next steps.

My boss called a conference call on Monday. I'll wait to hear what he says before filing unemployment and taking legal action. I've worked for him for 10 years, I trust we will get paid when he gets the money that is owed us. I'm hoping that on Monday, he will have a timeline for when that money will be paid to us. My hope is that I will get paid faster by being patient than if I took legal action?? If he can't provide a timeline or it's not reasonable, then I will report the company. (does that sound reasonable?)

[gibas23]

that is very reasonable. This board is amazing, isn't it? So many smart parents and so caring too

[cvanbrunt]

This board is amazing, isn't it? So many smart parents and so caring too

Yes it is. I'm never leaving.

[TwinFoxes]

My only fear is, if the company files for bankruptcy, you will very likely never ever get paid. Employees are last to get paid. Sad but true. Maybe our attorneys can speak to this, because I only vaguely remember this from covering companies that collapsed.

He could have paid you all. He could have told you all last month. I think you're being good and loyal, but I don't want to see that loyalty cost you in the end. But I don't know the guy, maybe he's the type who would sell his house rather than not pay you.

[ha98ed14]

My only fear is, if the company files for bankruptcy, you will very likely never ever get paid. Employees are last to get paid. Sad but true. Maybe our attorneys can speak to this, because I only vaguely remember this from covering companies that collapsed.


So should ZoStarG even stay at work on Monday past the meeting? Is the employer expecting the workers to keep putting in their normal days with no promise of being paid for the past 2 weeks? Can they require that as a condition of getting paid? Hello, people have daycare payments?!?

[zoestargrove]

My plan is to call into work on Monday. I don't plan to make the drive into the office. I think he is going to offer everyone 24 hour work weeks. I don't see the sense in this if he doesn't know when the money owed the company is going to be paid. I don't know...maybe that isn't even going to be an option. I just know that they were changing policies on Friday to allow that to happen.

24hour work would still be more than I would get if I collected since I max out the benefit. I was suprised to hear that is what a colleague of mine is planning to do if offered. My feelings are closer to how the others on this board are responding and it seems to be too big a gamble.

I was told by a colleague that employees would be the first to be paid if the company declared bankruptcy. I better look this up and hopefully someone on here will know Mass law specific to this question.

[ha98ed14]

I'm glad you have a plan! For my own benefit, what's a 24 hour work week? You mean, people only work 24 hours per week instead of 40? If so, that seems VERY presumptuous of him considering he's not giving you any indication of when he will pay you!

[zoestargrove]

I'm glad you have a plan! For my own benefit, what's a 24 hour work week? You mean, people only work 24 hours per week instead of 40? If so, that seems VERY presumptuous of him considering he's not giving you any indication of when he will pay you!

exactly! I think he feels that that the money owed to us will be coming very soon. I'm assuming that he thought he'd get it in time to pay the December payroll and unfortunately that didn't happen.

[ha98ed14]

exactly! I think he feels that that the money owed to us will be coming very soon. I'm assuming that he thought he'd get it in time to pay the December payroll and unfortunately that didn't happen.

Well, I dunno about your situation, but most DCPs I know make you commit to a schedule, so you are paying for 40 hours of daycare (or however much you're contracted for) even if you don't need it all! Does he know how hard it is to find P/T daycare? I hope this isn't your situation, but it would be mine. Ugh. Either way, I think the PPs are right. Use the other 16 hours of your work week to send out resumes!

[BayGirl2]

...
My boss called a conference call on Monday. I'll wait to hear what he says before filing unemployment and taking legal action. I've worked for him for 10 years, I trust we will get paid when he gets the money that is owed us. I'm hoping that on Monday, he will have a timeline for when that money will be paid to us. My hope is that I will get paid faster by being patient than if I took legal action?? If he can't provide a timeline or it's not reasonable, then I will report the company. (does that sound reasonable?)

:hug5:I'm sure this is super stressful for you. I think you have to go with your gut, but giving them the chance to be heard on Monday seems like the right thing to do. In the meantime you can get your house in order - meaning research your rights, polish up your resume, start the process of looking for another job, figure out how to file unemployment, etc. Waiting until after that meeting is not going to hurt your ability to file for unemployment and it won't change your priority in a the case of bankruptcy. But you should be prepared to act based on what they tell you Monday.

On your question about the mortgage payment - I would certainly call the bank and explain the situation. Explaining the problem will not damage your credit report but missing the payment with not explanation may. In the long run I think being up front about circumstances outside your control and working with the bank to find a solution will likely work in your favor.

Good luck, I hope it all works out smoothly.

[anamika]

Sending mojo. Hope you get paid soon.

[TwinFoxes]

I was told by a colleague that employees would be the first to be paid if the company declared bankruptcy. I better look this up and hopefully someone on here will know Mass law specific to this question.

I really don't think that's true. Keep in mind I have zero ZERO legal experience, I'm just trying to remember from when I covered corporations that went bankrupt. Hmm, maybe the US dept of Labor has the answers on their site? Or maybe Arivecchi or another attorney knows?

[zoestargrove]

first resume out! not ideal, but it feels good to get something positive in motion.

Thankfully, both kids are in school full day, so I don't have to pay daycare.

[arivecchi]

I was told by a colleague that employees would be the first to be paid if the company declared bankruptcy. I better look this up and hopefully someone on here will know Mass law specific to this question. Your colleague is incorrect. Under the US bankruptcy code, employee wages are unsecured claims. My best guess is that the owner is using whatever monies are available in order to keep secured creditors at bay. In bankruptcy court, employee claims would get paid before some other unsecured claims but after all secured creditors and there is usually nothing left by then.

Please note that I am not a bankruptcy lawyer but know enough to be dangerous!

[kijip]

I really don't think that's true. Keep in mind I have zero ZERO legal experience, I'm just trying to remember from when I covered corporations that went bankrupt. Hmm, maybe the US dept of Labor has the answers on their site? Or maybe Arivecchi or another attorney knows?

Wages are a little different than other $ owed employees. Most states will assist employees in getting wages paid ASAP before any bankruptcy- there are serious penalties for not paying someone for their work. However, employee stocks, pension and health funds are neglected while a company is in bankruptcy and other creditors come up higher on the list for everything, including wages. Your best bet to get paid is to report them to the state BEFORE they get to bankruptcy court! Do not let a 10 year tenure prevent speedy action on this.

[wencit]

Yikes! P&PT that you get paid AND that you find a new job soon!

[mctlaw]

Wow, I missed this thread before. I am so sorry your employer is doing this to you, and good for you for moving forward. I hope they do the right thing here.

[Giantbear]

My only fear is, if the company files for bankruptcy, you will very likely never ever get paid. Employees are last to get paid. Sad but true. Maybe our attorneys can speak to this, because I only vaguely remember this from covering companies that collapsed.

He could have paid you all. He could have told you all last month. I think you're being good and loyal, but I don't want to see that loyalty cost you in the end. But I don't know the guy, maybe he's the type who would sell his house rather than not pay you.this is not true, owed wages, with some limitations, are a priority claim in bankruptcy.

[arivecchi]

I believe employee wages have priority up to $10k per employee amongst the unsecured claims but they not trump secured creditors.

They do constitute priority claims in Canada and European countries.

[TwinFoxes]

Bankrate.com has tips to survive bankruptcy. It looks like employees are not last to be paid, but if they file chapter 7 things don't look good. Notice what they say about assets being in monies owed to the company.

http://www.bankrate.com/finance/personal-finance/surviving-a-workplace-bankruptcy-2.aspx

You are being really strong! Stay that way!!

[carolinamama]

No advice or anything but I wanted to send mojo your way. This sucks. These are such scary times but you will get through it.