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I work for a small company in Michigan. We work Monday thru Thursday and are paid weekly. We used to given our paychecks on Thursday until a couple months ago when, with no advance warning, the boss started waiting until Monday to pay us. Three weeks ago, and every week since, the checks have been 3 days late. Every day we're told at the end of the day that there will be no checks given out but they'll definitely be given out the next day. The same thing repeats the next day until they're finally handed out on Thursday, a full week later than they should've been originally. Also, each of the checks has been post dated for the following Saturday or Sunday. To top things off, two of them bounced. This is the 5th bounced check I've received in the last 9 months.
When a coworker confronted the boss, she was apparently told "We don't have any money. If you don't like it, you can take a voluntary layoff until we have money."
A couple questions. If I want to keep this job, do I have any legal options? Is there any way to force them to give us our checks on time, or be compensated for the lateness? Also, if I take a "voluntary layoff" will I be eligible for unemployment pay? My understanding is if you quit with cause you can still collect unemployment, would the situation I described above be considered cause for quitting?
If the employer files for bankruptcy (Chapter 11 or 7), as an employee with pay due to you, you are at a high priority for payment. If the employer doesn't file for bankruptcy, you are getting scammed and should file suit or file a complaint with the Department of Labor, pronto. I don't think you will qualify for unemployment if you just quit. You could sign up for a voluntary layoff but the employer has to be the one to actually fire you (involuntary layoff is where the boss decides who goes without any input from the employees).
I used to work for a small business that was having cash flow problems, and when they didn't have enough money for paychecks on pay day, the managers deferred their pay (sometimes up to a week) so that their employees could be paid in full and on time. We did not bounce any checks. That indicates poor management and the business will probably close soon.
Here's an idea: you and your co-workers (all of them, so no working until this is resolved) should have a meeting with the boss and ask for a copy of the bankruptcy paperwork. If there isn't one, volunteer to provide it yourself. It's called involuntary bankruptcy, and as creditors you can do that.
If they aren't making payroll it's possible they also aren't paying workers comp premiums, payroll taxes, health insurance premiums, etc. I would call the DOL, but I think in this case yes, you would be eligible for unemployment. And make a complaint anyhow, there are very specific laws about when and how employees need to be paid.
And in all honesty, you boss might agree to laying you off if you ask. Just get it in writing that it's an involuntary layoff and you are eligible for unemployment before you leave!
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