If it is an employee’s payday but their employer has no money in the company bank account, is the employer allowed to withhold the employee’s check?
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If it is an employee’s payday but their employer has no money in the company bank account, is the employer allowed to withhold the employee’s check?
Asked on November 7, 2015 under Employment Labor Law, Nevada
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
There's the legal answer and the practical. Legally, no: an employer may not withhold employee pay, but rather must pay them as scheduled. Practically, if the company has no money, it can't pay: it doesn't matter what their legal obligations are if they literally cannot pay their employees. (If there's no money in the bank account, if they gave you a check, it would just bounce.)
If your employer does not have the funds to pay employees and has no money in the bank account, that is typically a sign that the company is in financial trouble, is mismanaged, or even that someone is embezzling, etc.; that is, it's a sign that may be a good time to look for a different job.
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