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Not being paid on time/paychecks bouncing - California

On Lawyer & Legal » Employment & Labor Law

4,286 words with 7 Comments; publish: Mon, 02 Apr 2007 14:13:00 GMT; (800109.38, « »)

My husband's company was recently sold and purchased by a new owner, who brought in a new general manager. The owner lives out of state and is only reachable by phone. Since the change in ownership, he has experienced nothing but problems with his paycheck. He is paid every two weeks on Friday.

His first paycheck, under the new ownership, bounced. He was reimbursed and assured it would not happen again.

His check for the next two-week pay period bounced as well. The general manager wrote him another check to cover the one that bounced, and that one bounced too. Finally the owner wired him cash to cover his paycheck.

Now we're onto the third pay period, and the general manager does not show up to work on Friday to hand out the payroll checks. All calls to the GM went unreturned. Finally they phoned the owner who assured them they would have their checks by the end of the day. They ended up not receiving their checks until Tuesday.

The same thing happened again this past Friday. The GM did not show up, and none of the employees received their paychecks (except of course the GM). Tired of dealing with the GM, my husband went straight to the owner and had a lengthy phone conversation with him on Saturday. The owner stated he had been told by the GM that payroll was taken care of, and was disappointed to hear that the employees had not been paid once again. He assured my husband that everyone would have their paychecks first thing Monday morning.

So this morning my husband goes into work and is informed that they will not receive their paychecks until Wednesday (five days late) because they are waiting for some checks to clear, and until they do there is not enough money in the account to cover payroll.

What are our options? Can we file a complaint with the labor board? This is really screwing up our finances. On top of everything else, the bank is now putting a 10 day hold on my husband's payroll checks since the owner bounced 3 checks to him in less than a month.

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  • 7 Comments
    • His first paycheck, under the new ownership, bounced.

      That, alone, would be a really bad sign.

      I cannot imagine someone being able to buy a company and immediately not being able to pay the bills.

      Run. Fast. Even if the long term prospects for the company are good, the owner could care less about the people generating revenue (the employees).

      Do complain to the DLSE.

      #1; Tue, 03 Apr 2007 13:18:00 GMT
    • Hi Patty. Thanks. I know you would know since you work/worked in HR. I believe you. The only reason I said the Dept. of Industrial Relations is because I have ref. material for every state re wage complaints & that is the agcy. they said to contact in Ca. - most states DOL - wage & hr. div. (They said that was California's "DOL.") Betty (I'll change my Ca. info) :)

      CA-DLSE reports to CA-DIR. Sort of like federal Wage and Hour Divsion reports to federal DOL. However CA-DLSE actually seems to sometimes do something related to labor law, unlike CA-DIR. The CA-DLSE website has a lot of useful information and it is where complaints are filed. CA-DIR website tends to talk about current and pending legislation.

      http://www.dir.ca.gov/dlse/dlse.html

      #2; Tue, 03 Apr 2007 14:18:00 GMT
    • It is time to find a new job.

      Cash flow problems like this with a new business are not a good sign of a healthy company.

      Get out while the getting's good.

      #3; Mon, 02 Apr 2007 14:33:00 GMT
    • Actually, Betty3, the Division of Labor Standards Enforcement is the California agency that, um, enforces the labor standards. (grin) At least this one.

      Hi Patty. Thanks. I know you would know since you work/worked in HR. I believe you. The only reason I said the Dept. of Industrial Relations is because I have ref. material for every state re wage complaints & that is the agcy. they said to contact in Ca. - most states DOL - wage & hr. div. (They said that was California's "DOL.") Betty (I'll change my Ca. info) :)

      #4; Tue, 03 Apr 2007 13:00:00 GMT
    • Actually, Betty3, the Division of Labor Standards Enforcement is the California agency that, um, enforces the labor standards. (grin) At least this one.
      #5; Tue, 03 Apr 2007 02:53:00 GMT
    • Yep - he might want to look for another job. I would also put in a complaint with the Dept. of Industrial Relations in the state of Ca.
      #6; Mon, 02 Apr 2007 17:59:00 GMT
    • Ok - thank you, DAW.
      #7; Tue, 03 Apr 2007 14:58:00 GMT