The greatest economic turmoil that swept through America in 2008 made survival tougher for many top-notch companies. A majority of company in America is still going through tough times and when there is cash crunch within any company, the company tries to cut costs by delaying payment to employees or not paying at all for months.
Unfortunately, most companies have no idea that paying employees in one of the top legal obligations. The others being:
As per federal and state laws, . That said, an employer cannot pay the employees monthly one month and weekly the next.
Some states also require employers to pay terminated employees within a certain amount of time. Check with your state's department of labor for regulations in your state.
If an employee has unpaid wages, overtime wages, or vacation pay, he/she can contact the state employment agency and file a complaint. Once your complaint is accepted, the agency investigates the entire thing and if found guilty, the employer either faces a lawsuit or loses its license. Consequences include not only the payment of wages due, but also fines and penalties.
An employer can protect itself by maintaining a good time record, taking wage disputes seriously, and attempt to resolve any dispute at the slightest hint. If there is a dispute about an employer’s pay - whatever it might be - the employer should immediately pay the portion due.
A few things you might not know about paying employees:
. So it’s advised to make the employee wages sheets clean as best as possible.
Do you know? Obama’s new overtime rules: Are you eligible?