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I've been with my current company since March 2014 and get paid on a weekly basis. However, I was just informed that the company is withholding all employees pay for the first week in August. They said that most companies withhold pay for the first week for new employees, and will give it to the employee when they leave. Is this legal?
I know a lot of places may not pay immediately based on when you start and when the company is paid. In other jobs I might have waited 2 weeks for my first paycheck based on the start date and the bi-weekly checks.
But I've never heard of a company just deciding to hold a check, a year later for most employees, just because they feel it's okay. This just doesn't seem right to me. It's a legit company so there's nothing shady going on (as far as I know.) But this seems very questionable to just not pay employees.
Any input would be greatly appreciated. Thank you.
I have worked in US Payroll for many years and never heard of such a thing unless under very specific circumstances (garnishments, withholding pay for losses incurred by the employer when the employee does something under gross neglicence)
Oh sorry, that probably would have helped! I live in Florida.
This isn't because of poor performance of anything like that, they are withholding all employees checks for that week.... and most of us have been here for over a year and this was never discussed until last week when they informed us what they are doing.
It's a substance abuse treatment center that's been around almost 2 years. We have around 20-25 employees. They make GOOD money from insurance and private pay, but I obviously don't know the specifics on where the money is going. We've actually grown a lot in the last few months... which is why this seems so weird to me that they would do this. Luckily, I'm going to quit in October anyway to move to NYC but I'm so shocked by this decision to do this.
I'd report them to the department of labor. It is not legal to withhold pay and I can't imagine what their justification is for doing so. Most likely it is a failing company with cash flow issues. I agree with the others start looking to bail on this sinking ship.
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