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How can one claim unemployment if the employer is flat broke with no money coming in, can't pay employees, bills, or their unemployment insurance, and won't lay you off. What does one do? Keep going out in hope of getting paid or stop going out and wait for the company to go bankrupt and file a claim in court.
One employee hasn't been out in weeks and just lost their house. My father and I are next. I've been working mostly part time lately but my father full time and is also a shareholder. No one is really left besides the board of directors. Are we all out of luck? What can we do.
How can one claim unemployment if the employer is flat broke with no money coming in, can't pay employees, bills, or their unemployment insurance, and won't lay you off. What does one do? Keep going out in hope of getting paid or stop going out and wait for the company to go bankrupt and file a claim in court.
One employee hasn't been out in weeks and just lost their house. My father and I are next. I've been working mostly part time lately but my father full time and is also a shareholder. No one is really left besides the board of directors. Are we all out of luck? What can we do.
Contact the DOL. If they paid unemployment insurance in the past, and you are declared eligible which I'd bet on, you can collect.
While not getting paid is a good cause quit, some states have the most ridiculous requirement that you have to try to adjust your grievance before quitting. That process can include complaining to the employer and failing that filing a wage claim with the department of labor. Also, some states think that it takes more than one missed paycheck before a good cause quit can be established. These rules could easily leave a claimant out 3 weeks UI benefits and 4 weeks of missed pay because when you're working even when you're not getting paid you're not unemployed.
These are AZ's rules on the topic:
C. Failure or refusal to pay (V L 500.3)
1. A claimant would have good cause for quitting if the facts clearly establish that his employer willfully refused to pay him wages that were actually due, provided that he first made a reasonable attempt to adjust his grievance.
2. A worker has the right to receive his wage in the proper amount and when due. It would be unreasonable to expect him to continue working unless he is reasonably certain of being paid for his services. Thus a claimant would leave with good cause connected with his work; when:
a. The employer is repeatedly late paying his wages;
b. The claimant is repeatedly paid with checks drawn on insufficient funds even if restitution is made.
3. Isolated instances of late payment of wages, or payment of wages with a bad check when prompt restitution is made will not establish good cause for leaving.
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