My Employer still owes me 1 years worth of pay

I have a serious problem. I started working for this company 2 years ago. I agreed to a salary of about $62,000 per year and be paid weekly. Also, after one year, the company agrees to pay for my medical insurance. I was also told that because they are a small business, they may be late on a pay check once in a while. Okay, sounds great. This is an engineering position.

Several months into the job, my employer started being late on paychecks, claiming they are waiting for money to come in from our various contracting jobs. It wasn't bad at first. There are only a couple other employees in the company. The jobs we are contracted out to do pay several hundred thousand dollars.

Then it got out of hand. Every week the employer asked if we could hold off till the following week. Then the same story. Once in a while a pay check would come in. The employer catches up on all the other employees payroll, except me.

Here is where I am at today.

I received about $31,000 for my first year (26 weeks worth)
I received about $26,000 for my second year (22 weeks worth)

So I am still owed about $69,000 (or 56 weeks) worth of pay.

Here is what's even worse. The other employees are behind only 8 weeks. My employer has been catching everyone else up in their pay. Every week it is a new story. And every week the outlook is told to us in a promising way.

On top of that, The employer has not paid a single one of my Health Insurance fees for the one year I had it (which I still have).

So that is another $3600 on top of what is already owed to me.


Two questions.

1) What the heck do I do now? I don't want to leave until I have another job lined up. But if I leave, how will I ever get paid?

2) If the company goes Bankrupt, will I get paid what was already owed to me? I cannot find any information on whether an employee who has not been paid for an entire years worth of work will be paid when a bankruptcy happens.

(BTW, the employer not too long ago got a new Volkswagen Jetta)

Another note, There are many weeks where I work a 80 hour week. A couple times I have done a 110 hour week. Just thought I would point out my dedication to the job.

[130smartchick]

If you are in the US, have you contacted the DOL?

Have you told your boss how insane it is for you to be so far behind in payroll?

Have the other employees told you he's paid them pretty much up to date - or where did that info come from?

If you feel you are worth the agreed-upon salary why didn't you start looking for work last year?

130smartchick,

You Wrote "If you are in the US, have you contacted the DOL?"

No. An Ex-Employee did after he quit. The ex employee explained to the DOL that all the employees are not getting paid. The department of labor contacted the company and communicated with the boss. Then that was the end of the DOL. So in my personal witness of the DOL, they are a worthless government agency. I see no reason to waste my time with such an incompetent department.


You wrote "Have you told your boss how insane it is for you to be so far behind in payroll?"

Not in those exact words. But again, we (employees) are continually told that checks should be coming in from our contracted jobs. Back in October, November, and December of 2009, we accomplished completing 4 huge contracts that should have brought in hundreds of thousands of dollars. Supposedly, as the boss claims, we are still waiting for the checks to come in. I suspect that the boss is in so much debt, that all the money will already be gone to pay back other debts. I believe the boss thinks that it is more important to put the money right back into the business instead of paying employees, mainly me.


You wrote "Have the other employees told you he's paid them pretty much up to date - or where did that info come from?"

I have become good friends with the other employees. They are currently 2 months behind on their pay. One of them has quit recently and is still waiting for his money (not the same person as I described earlier in this posting). So I am a year behind, and they are 2 months behind.


You wrote "If you feel you are worth the agreed-upon salary why didn't you start looking for work last year?"

Jobs are scarce and most all require relocation to other states. Perhaps I am picky, but I am not leaving my state. I really enjoy the work I do at my current position. However, mismanagement is putting a huge damper on things. I have loaned one of the employees $1000 so they could pay their rent for the past two months. I guess I am way to nice. But I don't think I should be getting screwed by the company that owes me a year's worth of pay. I am also way to loyal, and will continue to put forth full effort where I am at if it means landing a good contract that will bring in enough money so the company can afford to pay me back.

My issue right now is, What happens if the company files for Bankruptcy? Will I ever get my money? This is another reason why I have not contacted any authorities on this matter. I fear that taking action and reporting the company will cause the company to be shut down, and if so, would never get paid back.

[130smartchick]

For whatever reasons, you have chosen to cling to the side of a sinking ship.

Given the mismanagement you express, this company will probably not be picking up.

You are, of course, the perfect employee. You are hard-working, loyal, put in whatever time it takes, and not only do it all virtually for free, but lend co-workers money to pay their bills as well.

You say you like the work you do at your position, and your home state (which I completely empathize with being homesick myself) but surely you can find *some* other employment paying more than what you are currently actually collecting.

If you have no interest in going through DOL that's about your only choice. Or stay where you are, in status quo.

130smartchick,

Okay, how do I file a complaint with the Department of Labor. I have been to both the Federal and State DOL websites and can not find anywhere on the websites where and how to file the complaint. The sites are designed to promote job creation, but not designed to help workers file complaints of fraud within their workplace.


Also, if a company files for bankruptcy, do they have to pay their employees what was owed to them?

[130smartchick]

On the DOL webpage is a section for wage and hour violations. This is where you would make your complaint.

As for the bankruptcy issue, I would ask that question in the bankruptcy section. I do not know if being an unpaid employee automatically grants you creditor status or if you have to file and win a judgment for a set amount.

Well, I tried calling the DOL and got their answering machine. I left a message who I am, my number, and what it's about. I left it yesterday. I am still waiting for them to return my call.

Some new developments on my situation though. Found out that the company will be going out of business. The employer is trying to work out a deal where the company is sold. Employer supposedly owes a couple hundred thousand dollars in back taxes, and the IRS is about to rip the company apart.

I seriously don't foresee me ever getting paid. I think I'm pretty much screwed. My wife went off her medicine a few months ago so we could start having children. Now she is going to go back on the meds because we can not afford to have kids because we'll never see the money that is owed to me. My wife quit her job so we could move to where we are now. She was tenured in where she worked, and quit so I could work where I'm at now. For the past couple years now, the county I am in has a hiring freeze on teachers, so she has been unable to get back into the teaching profession.

So now, it appears we are both out of work and basically an entire years worth of pay will be gone for good.

I really need help on this...