Is my former employer responsible for disbursing my profit sharing funds?
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UPDATED: Jul 16, 2021
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Unpaid profit sharing money is generally covered under wage and hour laws, which means that there are a number of resources available to you if the money is not paid in a timely manner. One option is to contact the state department that handles employment in the state where you worked, the official title of this department will vary depending on the state.
If your former employer has a home office in another state, you may also want to contact the human resources department in that home office as well as the department of labor in that state. Whether or not the employment or labor department will help you will depend on whether you are a covered employee or not.
If you are a covered employee, the department of labor can pursue unpaid wage claims for you. You may also be able to pursue the money owed to you on your own. The process for obtaining your unpaid funds may differ from state to state. In general, however, you may be able to obtain the severance and unpaid profit sharing that is owed to you through legal arbitration or by otherwise making a claim against your employer under employment laws and labor laws.
You’ll need to be able to provide proof that not only did you work for the employer you’re seeking reimbursement from, but that the employer owes you profit sharing that hasn’t been paid. In many cases, the burden of proof that the employer paid will be on the employer. If the employer is unable to prove this, you should be successful at collecting the money owed to you. You will also need to prove that the company did in fact generate a profit during your employment, showing that you are entitled to receive a profit sharing reimbursement.