What should I do if I have worked for the past 5 weeks and received paychecks but cannot cash them because there is no money in account?

UPDATED: Oct 1, 2022

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What should I do if I have worked for the past 5 weeks and received paychecks but cannot cash them because there is no money in account?

The business is going to be closing the end of the month and has been having financial problems. There is not enough money in the cank account to cash the checks.

Asked on March 17, 2018 under Employment Labor Law, New Jersey


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Inform the business that you will sue not just it (since it is closing)ut also its owners for your money if they do not pay you, and that you are going to deposit the checks they gave you in, say, another two or three days--and that if they bounce, you will look to press charges for passing bad checks. Hopefully, that will encourage them to make sure the checks are covered. They try to cash them; if they won't be cashed, go to the police and also file a lawsuit. Note that IF the company is an LLC or corporation, while you should try to sue the owner(s) personally, you might not be able to: it is difficult to "pierce the corporate veil" and hold the owners of an LLC or corporation liable unless you can show deliberate wrongdoing and an intentional misuse of the business entity to try to defraud creditors (including employees owed for work done). It is possible you not be able to effectively sue anyone but a business going out of business, and therefore may not end up getting paid.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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