I recently learned that my employer has been underpaying me
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I recently learned that my employer has been underpaying me
for over 6 many years union contract they have admitted the underpayment
and want to give me a lump sum of the difference.
What are my options when accepting this payment? Interest? How it is paid?
What can I ask for besides the lump sum?
Asked on May 27, 2017 under Employment Labor Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
You can *ask* for anything, but what you are entitled to is just the additional balance--i.e. the amount you should have been paid, but were not--and no more. That is what you were entitled to under the contract; therefore, that is what they need to pay you. You are not entitled to interest on the amount unless there was some clause in the contract which stated there was interest or penalties in the event of underpayment or delayed payment. (Of course, since the interest rate consumers can get--e.g. on CDs--has been under 1% for the last several years, even if you'd been entitled to interest at the commercially available rates, it would be a tiny amount of money, so little is being lost.)
As to how it will be paid--the law does not specify a method, but common would be a certified or bank check to you, a check from an attorney's escrow or trust account, or a direct deposit.
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