Legal Question in Employment Law in Maryland

My boss is asking myself and another co-worker to defer one of our paychecks due to the financial strain our non-profit organization is currently facing. Is it normal/legal to ask that of just two employees out of roughly 15? I know it is within his rights to lay us off, put us on furlough or give us a temporary reduction in salary....if that happens, are we within our rights to file for temporary unemployment benefits? I'm not in a financial position to voluntarily defer my wages. But if I'm forcibly told (for a legitimate reason) then I can at least get some temporary compensation. I'm not sure what I should do. It is my understanding that my boss has not spoken with our Board of Directors regarding this so it's not an official decision. Any thoughts or advice would be greatly appreciated. Thank You.


Asked on 11/19/10, 11:27 am

1 Answer from Attorneys

Phillip M. Cook Cook Legal Services, LLC

If I were in your shoes, I might consider doing the following:

1. I would not under any circumstance agree to defer ANY paycheck without something formal (in writing) from the company stating: (i) that you have done the work and are owed for that pay period, and (ii) guaranteeing when the paycheck will be repaid. I might also also ask for interest to be paid on the deferred pay check since that money would otherwise be sitting in your bank account. The writing MUST be signed by the Board of Directors, not just your boss.

2. Check out the Maryland unemployment compensation commission website at http://www.dllr.maryland.gov/employment/unemployment.shtml. You can find may of the answers to your unemployment compensation questions here.

Best of luck.******The above is for informational purposes only and does not create an attorney-client privilege.*******

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Answered on 11/27/10, 4:26 am


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