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Former employer withholding last paycheck

  • O-Trap
    A little background: Until two weeks ago, I worked remotely for a toy/hobby company based in California. I'd been with them for a year and a half.

    However, the way the company was run (particularly in regard to finances, but not exclusively) did a lot to get in its own way, so I quickly found work doing something similar for another out-of-state company. I went through the proper protocol. Gave a two-weeks notice. Worked through the end of my time there. Managed the handing off of major projects. Did my best to ensure no balls would be dropped once I left.

    Now, however, it appears that they're withholding my last paycheck, claiming that they don't have any proof that I worked the full 80 hours over the final two weeks.

    It was prorated, because I left before the end of a pay period, so it's not like it's a big chunk of change or anything, but I'm relatively pissed.

    Is there any recourse for this that doesn't cost more than the value of the last paycheck (about $800)?
  • iclfan2
    I'd fight it for sure, but I have no advice on how you can without spending a chunk of cash. Stinks that it is in a different state. For one, you could call them out on social media, that usually gets people to change their tune pretty quick.
  • queencitybuckeye
    Might start with these guys.

    http://www.labor.ca.gov/contactindex.htm
  • O-Trap
    queencitybuckeye;1871877 wrote:Might start with these guys.

    http://www.labor.ca.gov/contactindex.htm
    I may do that. Thank you.
  • gut
    I would have suggested small claims court, except the problem is - and I'm sure they know this - is that it's not remotely practical for you when they're based in CA. 1-2 trips will eat-up whatever they owe you (although you might tack on your costs to get them to pay....but small claims is usually limited under $5000).

    Incidentally, if you are a full-time employee (and not a per-hour contract consultant) I'm nearly certain they have no right to withhold pay based on how many hours they think you worked.
  • O-Trap
    gut;1871883 wrote:I would have suggested small claims court, except the problem is - and I'm sure they know this - is that it's not remotely practical for you when they're based in CA. 1-2 trips will eat-up whatever they owe you (although you might tack on your costs to get them to pay....but small claims is usually limited under $5000).

    Incidentally, if you are a full-time employee (and not a per-hour contract consultant) I'm nearly certain they have no right to withhold pay based on how many hours they think you worked.
    Right. The cost to actually take legal action against a company across the country seems a bit hard to justify, given the value of the check itself.

    I was indeed a full-time, W2 employee.

    At the end of the day, it's not going to make or break me. I'm pissed, and the CEO is being fairly smarmy about it, but I don't see much leverage for myself in fighting it.
  • gut
    O-Trap;1871886 wrote: At the end of the day, it's not going to make or break me. I'm pissed, and the CEO is being fairly smarmy about it, but I don't see much leverage for myself in fighting it.
    Looks like in CA an employer can withhold your last check (but only for 1 pay period).

    I would send an email (request a read receipt) to HR, cc'ing Payroll and the CEO (if you've been dealing with him) and tell them if they don't promptly issue your full wages due that you will be filing a complaint with the California LWDA.

    But you might wait on that a bit and continue to pursue more diplomatic options. The reason I take pause is because if you piss them off they could screw you on a future reference.
  • O-Trap
    gut;1871890 wrote:Looks like in CA an employer can withhold your last check (but only for 1 pay period).

    I would send an email (request a read receipt) to HR, cc'ing Payroll and the CEO (if you've been dealing with him) and tell them if they don't promptly issue your full wages due that you will be filing a complaint with the California LWDA.

    But you might wait on that a bit and continue to pursue more diplomatic options. The reason I take pause is because if you piss them off they could screw you on a future reference.
    Ooh, good call on that. I generally prefer not to burn bridges anyway (my career is based entirely on relationships), but that certainly adds incentive to avoiding doing so. Worst comes to worst, I will probably send an email as you suggest.

    I just spoke to the only person working there that I ever really got to know, and it sounds like he's looking to get out. All in all, the internal side of the company is a clusterfuck. Had vendors fire them for failing to pay. Had other vendors refuse to engage as a potential vendor because either they'd been stiffed in the past or they'd heard that the company had a reputation for that. They essentially cut the legs out from under the biggest affiliates, driving the program from about $3MM a year to about a quarter million a year. I even got several of my commission checks a month or two late (never my paychecks, which were always on time before this).

    Sorry. Venting a bit. Truth is, I think after they saw the mess that they'd made, they wanted to hire me to come in and fix it, but they gave very little budget for doing so (and what budget I did get, I basically had to fight for), and they frequently dicked over relationships I'd established to grow the program. Still managed an 11% YOY bump from 2015 to 2016, but good lord, the effort involved was mostly fighting the company itself to let me help them.

    I wouldn't care about the money if I hadn't done the work.
  • gut
    It sounds like they are having financial difficulties, but that's no excuse for not paying you.

    Keep with the high road. Remind what you did for them (like 11% YoY growth) and how you smoothly transitioned your job, and volunteer to answer the occasional question. Basically appeal to emotion and make them feel like shit for stiffing you. But I lose patience fairly quickly - the email I mentioned would basically be my last attempt to resolve it, and then if I still haven't been paid I go to the LWDA. Goes without saying don't bother sending that email if you don't intend to follow thru.

    The reputation risk MAY not be a big deal, given they seem to already have a lousy reputation. And if you have other strong references, you can explain that one away. Personally - and this is not my advice, just me - I don't let bullshit like that slide. Not going to let them do that to me or other employees.
  • O-Trap
    gut;1871904 wrote:It sounds like they are having financial difficulties, but that's no excuse for not paying you.

    Keep with the high road. Remind what you did for them (like 11% YoY growth) and how you smoothly transitioned your job, and volunteer to answer the occasional question. Basically appeal to emotion and make them feel like shit for stiffing you. But I lose patience fairly quickly - the email I mentioned would basically be my last attempt to resolve it, and then if I still haven't been paid I go to the LWDA. Goes without saying don't bother sending that email if you don't intend to follow thru.

    The reputation risk MAY not be a big deal, given they seem to already have a lousy reputation. And if you have other strong references, you can explain that one away. Personally - and this is not my advice, just me - I don't let bullshit like that slide. Not going to let them do that to me or other employees.
    Oh, I intend to make it a headache that won't go away for a bit if they don't make me whole. Even if I don't get my payment in a check form, I'll get it in time and annoyance. Always with professional and polite language, of course.

    I replied with what you suggested. Reminded him what I had indeed done. Hasn't responded, and he may not, at which point, I may have to inform them of my intent to contact the LWDA about it (which I have no problem doing).

    I appreciate your help, as well as everyone else's.

    As for financial difficulties, I've been suspicious of that for quite awhile, actually. The writing seems like it was on the wall for most of the time I was there. I probably should have paid more attention to that early on. Lesson learned, I suppose.
  • BoatShoes
    O-Trap;1871886 wrote:Right. The cost to actually take legal action against a company across the country seems a bit hard to justify, given the value of the check itself.

    I was indeed a full-time, W2 employee.

    At the end of the day, it's not going to make or break me. I'm pissed, and the CEO is being fairly smarmy about it, but I don't see much leverage for myself in fighting it.
    As the matter involves interstate commerce I would file a complaint with the U.S. Department of Labor's wage and Hour Division or at least threaten to do so via letter.

    https://www.dol.gov/whd/#
  • BoatShoes
    O-Trap;1871886 wrote:Right. The cost to actually take legal action against a company across the country seems a bit hard to justify, given the value of the check itself.

    I was indeed a full-time, W2 employee.

    At the end of the day, it's not going to make or break me. I'm pissed, and the CEO is being fairly smarmy about it, but I don't see much leverage for myself in fighting it.
    As the matter involves interstate commerce I would file a complaint with the U.S. Department of Labor's wage and Hour Division or at least threaten to do so via letter.

    https://www.dol.gov/whd/#
  • ernest_t_bass
    Upper decker
    Do his mom
    etc.
  • O-Trap
    ernest_t_bass;1871990 wrote:Upper decker
    Do his mom
    etc.
    Fun tidbit: Despite the fact that I've visited the headquarters, AND the fact that he is regularly involved in the area in which I was employed, I've never actually spoken to him, sans the brief email I sent him yesterday.

    Dude is kind of a douche. Think DJ Khaled wannabe. Tries to wax philosophical, but comes off sounding like he's trying too hard.


    (he's the one being held ... shit you not, that guy is a CEO of an 8-figure company)
  • like_that
    O-Trap;1871998 wrote:Fun tidbit: Despite the fact that I've visited the headquarters, AND the fact that he is regularly involved in the area in which I was employed, I've never actually spoken to him, sans the brief email I sent him yesterday.

    Dude is kind of a douche. Think DJ Khaled wannabe. Tries to wax philosophical, but comes off sounding like he's trying too hard.


    (he's the one being held ... shit you not, that guy is a CEO of an 8-figure company)
    He looks like a sleaze bag that would withhold an employee's paycheck.