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PAYDAY ISSUES

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WHEN IS A EMPLOYER SUPPOSED TO PAY A EMPLOYEE? I HAVE NOT YET RECEIVED MY LAST 2 WEEKS PAY AND SINCE WORKING FOR THIS COMPANY THEY NEVER PAID ON TIME NOR ANSWER PHONE CALLS.

It would be very helpful to know which state this question concerns, because the answer does vary somewhat from state to state.

Many states have some version of a “payday” law that specifies how often an employer must pay workers. Often, it’s at least twice per month. Other states address the issue in the state minimum wage law. If you post another question, we’ll supply an answer that is specific to your state.

In most states it is against the law for an employer not to pay employees on payday. The employer has the right to set the payday, but once it is set, the employer must honor it. Failure to do so is a violation of the state minimum wage law. The employer is paying less than the state minimum wage, because the employer is paying the employee nothing. Normally the Wage and Hour division of the Department of Labor in each state enforces this law, although the name of the agency is different in some states.

Failure to pay an employee on payday may also be a violation of the federal minimum wage law. In general, the federal law applies to companies with a revenue over $500,000 per year. It also applies to any employee who is engaged in interstate commerce. This may include manufacturing products that are sold in another state, placing or answering phone calls from other states, or regularly handling mail or ordering products from another state.

Again, by paying the employee nothing, the company is clearly violating the federal law that requires that an employee be paid at least $5.85 per hour. The relevant statute here is the FLSA, the Fair Labor Standards Act of 1938. The U.S. Department of Labor Wage and Hour Division enforces this law. Their toll-free number is 866-487-9243.  

The U.S. Department of Labor will assist a worker in collecting the minimum wage. However, if a worker has been paid the minimum wage, but not paid additional monies that were promised, the federal government won’t get involved in that situation. Often, the employee will need to sue the employer, or take the employer to small claims court, to receive those monies. Some states do have laws requiring the employer to make good on the wages promised to employees. In some cases, these laws also cover benefits. In those states, the state Department of Labor will pursue the case on the employee’s behalf.