Legal Question in Business Law in Indiana

I'm a college student, and I spent this summer working part-time for a franchisee-owned fast-food establishment. This store pays its employees every two weeks.

The payday before last, I went to pick up my check as usual, only to discover that no one working there, including the manager, had any idea where my check was. All of the other employees' checks were there, but mine was missing.

My manager told me he would contact the owner of the franchise, and I should have my check by the following Monday. On Monday, I showed up to collect my check, but my manager said that now, he wouldn't receive the check until the next Monday. I called the next Monday, and was told my check still hadn't arrived, and that I would be contacted as soon as it had. After more than a week of waiting, I returned (today) to find that my check STILL had not arrived. My manager said he would contact the owner again, but I probably won't get my check until next week.

If that proves true, this check will be a full month late.

I was counting on that money to pay bills. Like most people, I budget according to my pay schedule. Since I didn't receive any money on payday, I wasn't able to pay my credit card bill the following week, leaving me with over $100 in late fees, a quadrupled monthly minimum payment, and a huge dent in my heretofore excellent credit score. In three years of having a credit card, I have never once been late on a payment---until now.

Yesterday, as a result of this negative credit, my student loan application was denied. I am entering my third year of college, and all of my student loans up until now have been approved. Now I am scrambling to find the money I will need for school, which starts in two weeks, all because my employer failed to pay me the money I was owed.

Here is my question:

Is my employer compelled by law to pay me on time (or within a reasonable amount of time after the scheduled payday)? I so, am I entitled to any restitution for the hardship inflicted on me by not receiving my check? I feel like, at this point, I am owed more than just my month-late paycheck. I want to push the store owner to compensate me for what happened, but I need to know if I have any legal ammunition with which to threaten him. What applicable laws might help me make my case to the owner? (I live and work in Indiana).


Asked on 8/11/09, 2:24 pm

1 Answer from Attorneys

Indiana law requires that the employer pay you promptly. the employer may be subject to 3 times the amount owed to you and attorneys fees if you have made a demand for payment. The employer may also be liable for attorneys fees.

The concept of credit loss as a damage is relatively new. See http://www. moneymatters101.com/credit/damage.asp

Read more
Answered on 8/11/09, 2:38 pm


Related Questions & Answers

More Business Law questions and answers in Indiana