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Jul12

Compensation

What is the role of the manager when the company cannot pay the employees temporarily? How do we maintain their work ethic and motivation in these cases?

You are basically asking *How can the manager help the employer break the law?* The answer is, the manager cannot and should not. Both federal and state minimum wage laws require that employees be paid for all hours worked, and that employees be paid on payday. Not paying the employees is a violation of the federal FLSA, as well as other laws.

Employees who quit because they are not being paid usually qualify for unemployment. At least an employee on unemployment has the opportunity to find paying work. An employee who is being tricked into working for free does not.

In the majority of cases, when the employer cannot meet payroll, the company goes out of business and the employees (including the manager) are never paid. An honest and ethical employer will stop scheduling employees if there is no money to pay them. The managers role should be in ensuring that the employer follows the law by paying employees, rather than worrying about how to dupe people into working for the maximum amount of time.

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This entry was posted on Monday, July 12th, 2010 at 12:42 pm and is filed under
Compensation.
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