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?

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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

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 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.


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