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A month behind on paychecks Florida

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  • A month behind on paychecks Florida

    I am currently employed by a company who has gradually become later and later on paying several employees. I know my boss is doing his best, but he is unable to catch up. I read elsewhere that if a corporation goes out of business, any outstanding paychecks would be lost. Is that true and is it still true if the checks are written and signed, but locked away? Thank you in advance for your response(s).

  • #2
    A bit more complicated then that. "Due wages" are due wages. Whether or not the check has actually been typed but not released. The fact that the checks were actually issued but not released implies an itention on the part of the employer to issue them if/when they find some money.

    If the employer formally files a "close the doors" bankruptcy, then all due wages becomes claims against the remaining assets that the BK trustee has to sort. The fact that some due wages have a check issued but not released and others do not is sort of a "who cares". The other problem is that in a BK situation, there is no certainty that there are enough assets to eventually cover all claims, including all wage claims.

    And many employers do not bother to formally declare BK. They just take the cash and assets and leave.

    Start looking for another job now. That you control.

    Past that, FL does not have a state DOL, so no state wage claims are possible. Federal wage claims for MT/OT only are possible. Small claims court is possible as is taking to an attorney about a general court action. However, even if you get a judgement, there has to be actual remaing assets to cover the judgement.
    Last edited by DAW; 08-03-2012, 06:04 AM.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)


    • #3
      Wow, so my co-workers and I may soon out a lot of money that we really need.

      Please let me know if this makes a difference:
      The company is partially owned by the manager and partially owned by the "parent" company. The only way I know how to describe it is members of the corporate board of a national company are also members of the board of this local corporation (which I've been told is NOT a franchise), along with the manager. One member of the board and the manager are the stockholders.

      There have been times when the parent company has given us money, although not often. Do they share any responsibility to pay us?

      I appreciate your advice DAW. I have already been looking for a job. I don't want to be on unemployment.


      • #4
        Maybe. We are getting into areas too complicated to handle on an Internet board. If you win a legal judgment (which has not yet happened), then maybe the non-local owners can be held responsible. This is a function of having a lawyer carefully studying the ownership documents and seeing what a judge thinks. No sure things.

        One more time. The only thing you control for sure is what you do. Start looking harder for another job. DO NOT QUIT, but start looking for a new job. Maybe your employer will recover or maybe there will just be a locked door some day when you come to work. But what you describe does not sound good.
        "Reality is that which, when you stop believing in it, doesn't go away".
        Philip K. **** (1928-1982)


        • #5
          Thanks again, DAW.


          • #6

            Just thought I'd post my update. I found a new job in Sept of last year. The company is still in business and I still care about and pray for everyone there. They are still in financial distress. It took a good 5 months, but I have been paid all of my back pay and my vacation pay.
            Again, thank you for all of your advice!


            • #7
              Glad to hear it!
              The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.


              • #8
                Thanks for the update - good news!
                Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

                Live in peace with animals. Animals bring love to our hearts and warmth to our souls.