Can my boss withhold my check because he "doesn't have the money"?

I work for a small company and the employer is not responsible financially to say the least. He spends company money for personal expenses, does not get bills paid and time and does not keep a steady cash flow. This all began to happen after one of our better managers left a little less than a year ago. On our last pay day (April 17th) we asked for our pay checks and he simply told us that we couldn't have them because he didnt have the money in the bank to cover them. some of the other employees weren't as phased by this because their bills are not as substantial as mine because the company pays ALL their vehicle expenses and their cell phone bills. It was not an issue for my boss because he just charges things that he needs to his company credit card when he runs low. My question is, is this legal? Can he hold our checks because he doesnt have the money? Do I have any rights and is there something I can do to remedy this? Please direct me where I can start to take care of this issue. I don't live paycheck to paycheck or else this would be a bigger problem than it is, however because we get paid weekly it will not take long for it to become an issue.
Additional Details
I do know that I need to find another job, but I am 6 months pregnant and between that and the economy it is not going to be an easy task, I am looking though, just have no other choice but to stay at the moment

wizjp

You need to pay a visit to the National Labor Relations Board.

You'll end up job hunting for all practical purposes here.

Jesse

You can sue in small claims court. You should file ASAP.
you will win the claim. Collecting is another story.

Getting the check is the trick. if he does and it does not have
funds, it is criminal as well as civil.

Krooked

talk to a lawyer
this might help

http://www.sykesanderson.com/Employment/wages.asp

dadof7n2001

It is kind of a catch 22 that your boss is taking advantage of. It is a civil issue that carries criminal ramifications for him but if you report him, you could be out of a job and that is what he is counting on. The choice is yours whether to take action against him or not.
I would suggest finding a better job and then reporting him for fraud and/or embezzlement. Yes, it is possible to be convicted of embezzling your own money when the money is earmarked for salaries.

Dale R

If you need help contact dept. of labor, I'm pretty sure they could help. But legally I don't know if he can hold paychecks or not, I guess the only repercussions are that you and the other employees might quit and walk out.

Sufi

you can sue him for the compensation, but you will need an attorney. it's a better idea to look for and get a different job. if he gives you a check when he doesn't have the money, it will bounce anyway. the first time you didn't know but if you keep working when you're not getting paid, it's your own responsibility. it's going to be hard to ever get the money if he doesn't have it - there's noplace else to get it. if he goes out of business you will probably not be able to recover it. i would find a different job.

ivery

Absolutely not, he cannot do that confront him and if he does not respond that take matters into legal action. Check with the main office or human resources they should be able to help you if not unemployment offices also have very good resources.

Baby #1 on 12/10/08

If the company is truly broke, he can't give you your paycheck. You certainly have legal recourse here, however right now he can't make the funds materialize from nowhere. At least he didn't give you guys bad checks that would've bounced and left you incurring fees from your bank.

You can start with your state's department of labor whom will lead you to who you should file your complaint to or an attorney.

You should start looking for a new job. If he's that bad with money, this will happen again. If he goes out of business, be it out of his lack of finance sense or because of state intervention, you're going to be out of work anyway.

Crazydaisy

well the thing is he says he doesn't have the money to pay you..how is he suppose to pay you if he doesn't have it...
If I were you I would be trying to find another job..
and contact a lawyer and see what your legal rights are...

morals would say no he can not hold your income...
but it happens..
but i would get in contact with a lawyer as soon as you can.

No. They cannot.

The have 24 hours after a pay date to get your paycheck to you.

The unemployment office can probably direct you to the right place to complain about this. The Wage and Hour Board, Labor Board, or Human Resources Department for your State can help you.

Enter Your Message or Comment

User Name:
User Email:
Post a comment: