Here are the circumstances, I work for an internet company. A few months ago the company started having cash flow problems because our customers arent paying us anymore and paychecks have been late the last 5 checks, by a week or so ( we get paid on the 5th and the 20th of every month ). I have spoken with the controller and he informs me that the company CANNOT make payroll tommorrow 1/20 and they have not paid for my wages on 1/5. This scares me as my wife was laid off 6 months ago at the car dealership she worked at and our savings has dwindled dramatically while she has been looking.

Can anyone tell me what I should expect? I filed a wage claim last month on 12/20 and received my paycheck on 12/21, however the claim has not come through the mail and the company is unaware that I have even filed. How long can I reasonably expect to work for this company if they do not pay me? I DONT want to quit due to options in the company that I would lose but I anticipate having to take some kind of UI benefits ASAP to feed my family.

On another note I received a letter from my insurance company informing me that my insurance has been terminated due to employer non payment. This alarms me because I have been contributing my own money (almost $350 per paycheck ) to cover the additional premium that my employer does not pay for my children. I would consider that fraud but I am not an attorney so I leave that to the experts should I file a complaint with the State Attorney's office? The CEO and founder of the company is VERY wealthy, could he be held personally liable for violations here? He does sign the paychecks by hand, so that implies some kind of responsibility in my opinion.

My main question is how long do I keep going to the office and working for free before I can draw or even apply for unemployment benefits? Should I give the CEO a written demand to cure these violations? Should I wait for the DLSE to initiate contact? Does anyone have any recommendations or opinions on how to proceed? I have been to the UI website and there really is no guideline on what to do if your employer cannot pay and is not willing to terminate or layoff.

I have been trying, (literally spent 20-30 hours trying) to get through to the UI office to ask these questions and I have never been able to get through and DLSE doesnt know and tells me to ask UI. Before I make an in person appearance I thought I would see if any knows here.

Thank you for your help,
Scared to death!

I had a similar issue and called the CA Department of Labor. They helped me tremendously!

They might be able to help you. Wish I had more advice for you.

My heart goes out to you.:(

I think you should seek any other employment immediately to assist your family. Any wages that are unpaid, you may file a lawsuit and sue the CEO directly (along with the company) under 558 a of the labor code if he/she meets the definition of an employer (must control wages of the employees for example).

You can also contact the US DOL with reference to the insurance. While it is not illegal (in 48 states including CA) for an employer to cancel the health insurance plan (or fail to have it reinstated by making payment), if they do not make the payments to reinstate the policy they MUST return to you the payments that you personally made towards the premium.