Late payments are a major problem that many employees have to struggle with. It is the responsibility of every employer to pay their employees on time. However, some countries have laws that safeguard the rights of employees against receiving late payments.
However, if your state has not passed a similar law, you should consult a local attorney before making any determinations about whether or not it is legal for your employer to pay you late. In this article, you will learn if it’s legal for an employer to pay you late. Also, you will get insights into the steps to be taken if you are receiving late payments repeatedly.
Can your employer pay you late?
If your company doesn’t pay you on time over and over again for months then it’s not just immoral, but it’s also against the law. In such circumstances where your company is not making payments to you on time, as a worker, you are entitled to receive fair compensation.
The majority of the time, if an employer fails to pay you on time, they are entitled to pay interest on the amount owed for each day that it is not paid. The amount of time it will take to pay off the loan and how long your employer was aware of it will determine the interest rate.
In some countries, employers are allowed to pay employees late under unforeseeable circumstances. This involves dealing with financial crises, managerial setbacks, problems in the accounting team etc. But if you are receiving late payments repeatedly every month then you must take this matter seriously and take legal action against the employer and the company.
If your country has specific rules regarding the payment of wages then you might want to consider taking a look at the laws before you file a legal complaint. Furthermore, you must read carefully the terms of your employment contract if there is anything mentioned about late payments.
If you want to take legal action against your company then you might have your monthly pay stub along with other supporting documents. However, you can easily create a pay stub for yourself online anytime with the help of the best pay stub generator.
Steps to follow if your paycheck is delayed
Every employee needs to know and exercise their rights when it comes to being paid. You have the right to be paid on time and in full for all work performed. If you aren’t paid properly or on time, there are steps you can take to ensure that your employer pays you what’s owed.
Contact your employer
The primary step you must take if your paycheck is delayed is to contact your employer and discuss the reason for the delay in payment of your wages. If your wages are late due to some unforeseeable circumstances then you might want to wait for a couple of days or weeks before seeking legal help. If you are going through a financial crisis ask your manager for an extension of payment so you can receive an emergency fund that will be later deducted from your wages.
Submit a formal application to the management
If you have already reached out to your employer and yet your paycheck is being delayed then it’s time to submit a formal application to the management or higher authorities. This might help you to speed up the process and help you to get paid on time. Furthermore, this application will be your legal proof of claiming your remuneration rightfully.
Consult an attorney
The next step will be to consult an attorney if there is no response from the management regarding your application or you don’t find their reason convincing enough to wait longer for your salary. A lawyer can assist you in determining whether legal action is necessary and, if so, how to effectively proceed. Additionally, they can support you in bringing a civil lawsuit or a legal wage complaint to the state or federal authorities.
File a legal wage complaint
If you are being paid late by your employer, and if your manager or the management doesn’t respond to your application then you may want to consider filing a legal wage complaint. You might want to take this seriously especially if this results in lost income and even financial hardship.
Your attorney will assist you with filing a formal wage complaint with the Department of Labor or another local agency that oversees wage claims. Your company will get legal notice and they will be legally obligated to clear your dues within the specified time. If necessary, you can also claim compensation based on your paycheck.
File a civil lawsuit
If your company has failed to pay your remuneration on time and has violated state or federal laws that protect workers from unlawful employment practices then hire an attorney and file a civil lawsuit directly without wasting your time approaching a labour agency.
File a legal wage complaint with the government agency responsible for enforcing wage laws and filing civil lawsuits against those companies that owe money. Based on the amount of your claim you are entitled to receive compensation and interest on the total amount due.
The Bottom-line
In several countries, as per the law if an employer fails to pay you within 30 days of the end of the month, then you have the right to file a legal complaint against the company. This can result in fines based on your paycheck and you are also entitled to receive interest based on the amount owed.
However, if you are working in the same company and for some unforeseeable circumstances your employer is not able to pay you on time then it’s best to have some faith and trust in your company and wait for a few weeks before taking any legal action. You can talk with your manager and request an extension of payment if you are facing any kind of financial crisis.
