Your Options If Your Employer Refuses to Pay You

If you have earned the money, then it’s yours: your employer must pay you. Examples of money which you’ve earned would be salary or wages for weeks worked, commissions for sales made, or tips which were made but not yet distributed.

Employers are allowed to apply certain reasonable offsets to monies owed in some situations. For example, if your company loaned you money, it may have done so pursuant to an agreement that any amounts outstanding could be taken out of your final paycheck. If you received some moving or relocation allowance, or tuition reimbursement, and did not do whatever it took to have the amount be forgiven (e.g. you left too soon after being relocated), again, depending on the terms of the allowance, reimbursement, etc. and your employment, the employer may be able to debit this from what you are owed. In the case of commissions, it’s not uncommon for a company to be able to hold final commissions until the money has been collected from the customers.

However, as you can see from the examples above, these are fairly uncommon situations and, in any event, any offsets against your pay must have been agreed to in advance. Assuming none of these apply, then your employer needs to pay you everything you earned prior to leaving.

Of course, if your employer refuses to pay you what you’re owed, you’re going to have to sue the employer for money. Lawsuits can be expensive; before going ahead with one, you should:

1) See if there are any other legitimate claims you can put against your employer, to increase the total amount you’re suing for and make it more cost effective. If the employer discriminated against or harassed you on the basis of your race, sex, religion, gender, disability, or age over 40, retaliated against you for bringing up safety issues, or has defamed you in what it has said to prospective employers, you should bring those claims, too.

2) Think about whether it’s worth it to sue. If you sue in small claims court, it’s fairly affordable, but you’ll have to represent yourself and it will take time. If you want or need to get a lawyer to represent you, ask the attorney for a projected budget, including the lawyer’s fees. Make sure that you’ll come out ahead by suing.

Case Studies: Your Options if Your Employer Refuses to Pay You

Case Study 1: Unpaid Wages and Commissions

John, a sales representative, was terminated from his job and found that his employer withheld his final paycheck and commissions he had earned from completed sales. Frustrated and in financial distress, John decided to take legal action against his employer for unpaid wages and commissions.

With the help of an employment attorney, John filed a lawsuit, presenting evidence of the sales he had made and the amount owed. The attorney negotiated a settlement with the employer, and John received his unpaid wages and commissions, avoiding the need for a costly and time-consuming trial.

Case Study 2: Employer Violating Wage Agreements

Sara worked for a company that provided a tuition reimbursement program, and she was entitled to receive reimbursement for her educational expenses as agreed upon in her employment contract. However, when Sara submitted her reimbursement request, her employer denied her claim without a valid reason. Feeling that her rights were being violated, Sara sought legal advice from an employment lawyer.

The attorney reviewed her employment contract and found clear provisions guaranteeing the reimbursement. Armed with this knowledge, the attorney sent a demand letter to the employer, urging compliance with the contract terms. The employer responded positively, and Sara received the tuition reimbursement owed to her.

Case Study 3: Discrimination and Unpaid Wages

Tom, an experienced employee, noticed that he was being paid less than his colleagues with similar qualifications and experience. Suspecting discrimination based on his age, Tom consulted an employment attorney. The attorney conducted a thorough investigation into the company’s pay practices and found evidence supporting Tom’s claim.

Additionally, during the investigation, the attorney discovered that Tom had also been denied overtime pay for hours worked beyond the regular schedule. The attorney filed a lawsuit against the employer for wage discrimination and unpaid overtime wages. Through negotiations and mediation, the case was resolved, and Tom received fair compensation for the unpaid wages and damages related to discrimination.