Help! No Pay for Six Weeks to Two Months? (employment, payment, unemployment)
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Hi All -- Need some advice since I am officially in panic mode.
After getting lots of help in the unemployment thread, I came back and posted here to say how thrilled I was to land a part-time job. I was staring at the abysss, financially, so the offer of 30 hours per week was a godsend, right? At the time they were hiring me, we discussed my contract rate and hours per week, but not the date on which I would get paid.
Well, I learned today that it could take six weeks to two months before I have access to any monies from work. That is correct. Which is funny, because I will be out of gas money WAY before then -- in about two weeks in fact -- provided I don't bother eating.
So..apparently they have to process my 'hire' paperwork through some state or county agency and that can take four plus weeks, then you have to submit your invoice for the month (they pay once a month). After they receive your invoice, it takes approximately another two weeks for them to process the check and get it to you. Then my bank puts a lock on the funds for up to 10 business days to clear a third party check.
It seems to me I am now looking at two months before I have a payday. WOW. How is this possible? Is it legal? Worse, this puts me a a very embarrassing position vis-a-vis my new employer because I do not have the resources to tide me over for one month, let alone two. How awful. And no, there is no one I can borrow from.
I would be interested in hearing whether anyone else has heard of this or had this happen to them. Needless to say, I will be having a chat with my employer when he returns from his business trip. I just don't think it's reasonable to have left out that detail about the phenomenal delay in seeing a paycheck.
Last edited by Hols36; 10-11-2012 at 08:25 PM..
Reason: correct spelling error
I agree. If your actually a 1099 independnet contractor, your payment schedule should be in the contract. If not, billing once a month mean you have to wait for that month to expire. And, many corporations pay their bills on 30 days cycle. So its possibe that a wait of about 60 days would happen.
As a FYI, the time your bank holds the check is your own issue, not the person issuing the check. They have no control over what your bank does, and its none of their business. They pay you and now its up to you to cash that check. If the check is under $10,000 my bank does not put any hold on it except if from a foreign financial institution. They can, but they done for some customers.
I agree. If your actually a 1099 independnet contractor, your payment schedule should be in the contract. If not, billing once a month mean you have to wait for that month to expire. And, many corporations pay their bills on 30 days cycle. So its possibe that a wait of about 60 days would happen.
As a FYI, the time your bank holds the check is your own issue, not the person issuing the check. They have no control over what your bank does, and its none of their business. They pay you and now its up to you to cash that check. If the check is under $10,000 my bank does not put any hold on it except if from a foreign financial institution. They can, but they done for some customers.
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Thanks. I haven't signed a contract yet; my employer has been too busy to prepare the paperwork. It's been one of those -- 'got to get to that' (processing the paperwork'). But it's clear I was hired on a contract basis. This company works with a particular agency and I was told by someone who should know that they pay once per month. So I am not sure I could specify weekly. I will just have to bring it up with them, that is all. And see what they say -- if there is any way they can expedite the first check, etc.
The reason this is a surprise is that all the other contract jobs I have done paid me pretty much instantaneously once the work was completed. I (literally) had a check in hand when I walked out the door. I haven't done a LOT of contract work, but I have done 'enough'. On one six week project they paid twice monthly, but if I need a check cut weekly the accountant said 'no problem'. So a six week to two month delay is unexpected (and a real problem).
Of course my bank holding the funds for up to 10 business days is not the responsibility of the check issuer. I was merely adding up the various delays to show how I got to a potential two months of delay.
Well, lesson learned. ASK questions first, so there are no surprises. Don't 'assume' based on past experiences.
Maybe you could tactfully ask them for a draw after a few weeks of showing you are doing a great job.
The bank manager should be able to handle the 10 day hold, unless you have some financial issues you haven't mentioned. Even then they should be able to call the other bank verify funds and release it.
Hi All -- Need some advice since I am officially in panic mode.
After getting lots of help in the unemployment thread, I came back and posted here to say how thrilled I was to land a part-time job. I was staring at the abysss, financially, so the offer of 30 hours per week was a godsend, right? At the time they were hiring me, we discussed my contract rate and hours per week, but not the date on which I would get paid.
Well, I learned today that it could take six weeks to two months before I have access to any monies from work. That is correct. Which is funny, because I will be out of gas money WAY before then -- in about two weeks in fact -- provided I don't bother eating.
So..apparently they have to process my 'hire' paperwork through some state or county agency and that can take four plus weeks, then you have to submit your invoice for the month (they pay once a month). After they receive your invoice, it takes approximately another two weeks for them to process the check and get it to you. Then my bank puts a lock on the funds for up to 10 business days to clear a third party check.
It seems to me I am now looking at two months before I have a payday. WOW. How is this possible? Is it legal? Worse, this puts me a a very embarrassing position vis-a-vis my new employer because I do not have the resources to tide me over for one month, let alone two. How awful. And no, there is no one I can borrow from.
I would be interested in hearing whether anyone else has heard of this or had this happen to them. Needless to say, I will be having a chat with my employer when he returns from his business trip. I just don't think it's reasonable to have left out that detail about the phenomenal delay in seeing a paycheck.
LaborReady (a temp staffing agency) states in their ad that you can work today and get paid today. That would be some money coming in. You may need access some work through them to tide you over in addition to the part-time job you have landed. Good luck.
Thanks. I haven't signed a contract yet; my employer ................
Well, ththe foirst thing you must settel once and for all is: are you an employee, a contracted employee, or a contractor? Thats important because that determines if you have an employee/employer relationship or, if you have a client/contractor relationship. If employer/employee, you hold a bunch of cards, but if a client/contractor, the cards you hold are the ones in the contract and you can be waiting 4 months for payment if thats whats in the contract. SO DO YOU HAVE A COPY OF THE CONTRACT?
I wouldn't think it would take 10 days bank turn around if it is a State check. however, you can cash most payroll check s at Walmart....no processing time there. Can you get food stamps, or a gas voucher at unemployment to help get you through. Also, if you have a Salvation Army or other type thrift store that offers assistance, get some help...Sometimes agencies will help folks...just be straight w/ them...
Maybe you could tactfully ask them for a draw after a few weeks of showing you are doing a great job.
The bank manager should be able to handle the 10 day hold, unless you have some financial issues you haven't mentioned. Even then they should be able to call the other bank verify funds and release it.
Thanks, I'm considering asking for a draw (though I would rather not). I am hoping they will offer, after I make a few strategically placed (but not offensive!) remarks about the timing. If they don't offer, then I might ask. And I am already making the extra effort to impress, because you never know ... they might find other things for me to do and a part-time job could become full time. Everyone is looking for value, so I just have to find a way to bring it, then see what happens.
I never thought about asking the bank not to put the hold on the funds. So when the time comes, I will call them. I have never bounced a check or done anything else they would have a problem with in that account. I know banks like to protect themselves, but this is ridiculous since the funds are coming from a well known regional agency (I can point that out).
I wouldn't think it would take 10 days bank turn around if it is a State check. however, you can cash most payroll check s at Walmart....no processing time there. Can you get food stamps, or a gas voucher at unemployment to help get you through. Also, if you have a Salvation Army or other type thrift store that offers assistance, get some help...Sometimes agencies will help folks...just be straight w/ them...
Well, that would be one way to go. It would be a little convoluted since WM is a distance away (maybe 2 hours total round trip) and I would have to promptly take the cash and deposit it to my bank (most of it anyway), but that would cut out any bank hold. I am going to talk to the bank to see if they can not put a hold this time (per the OP's suggestion). But if insist a hold must be done, then I will go to Walmart!
I got a super cheap bus pass today, which takes care of the cost of gassing up the car every week, so that's solved.
Next...I guess calling food banks and seeing what can be done, where to go, etc. I am trying to get a 'real' job, and believe it or not, foodstamp programs come up in a background check plus when you enroll, if you are working for anyone, I think they have to be notified or something. Or maybe it was notifying only the last employer? I don't recall. I did food stamps once, years ago, for a very short period of time. I see that as 'last resort' but if there are no other options I guess I will reconsider. Again, the only reason I have not done it already is because of the 'record' it creates in background checks.
I need a real job! This is ridiculous!
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