Legal Question in Employment Law in California
My employer has not paid us since 1/31/10. He keeps telling us "funding will be here in a few days". Nothig has come through and he told us Friday that if we don't keep coming to work, he will have to shut the doors. Also, we have been getting receipts for the last several weeks that have all been deposited. When I asked him about paying out that money, he told me it isn't there. He said he had to "pay some bills". They obviously were not company bills as I have them all and none have been paid. Do we just file for unemployment and filewith the labor board? How long will the labor board take to process our claims?
Thanks in advance,
V
2 Answers from Attorneys
You can file a complaint with the Division of Labor Standards Enforcement (DLSE), which is here: http://www.dir.ca.gov/DLSE/ The DLSE usually takes a couple of weeks, but it is a lot faster than suing your employer.
You can also stop working for him and file for unemployment. The State of California does not require you to work for free.
If the company is running out of money, the sooner you start action to collect, the more likely you are to someday get something before they close up. If they file a bankruptcy, you'll file your Claim in that court. Right now, file a claim with the Labor Commission asap. Maybe them contacting the company will get compliance right away. If not, and the company 'fights' the claim in order to stall, then the process takes months. You should determine for yourself whether you think the company will 'catch up' on the pay, or whether you should immediately seek a new job. If you quit because of not being paid, you'll probably qualify for unemployment. If the employer is solvent, not going bankrupt, then all the employees could join forces with one attorney, file their claim for the unpaid compensation, interest, penalties. If you win, you'd be entitled to your attorney fees.