Bounced Payroll Checks are a liability

 

Suing for Late payroll and bounced checks under the FLSA

Employers that frequently delay issuing or bouncing payroll checks are at risk of getting sued.

Here are common questions employees aske each other:

Is your paycheck late too?

Are your paychecks bouncing on a regular basis?

While late and bounched payroll checks are frequently associated with small employers, they are also regular occurance with larger companies.

Bounced and Late Payroll Checks are lawsuits waiting to happen

Bounched payroll checks and late payroll checks create liability under the Texas common law theory of quantum meruit and the Fair Labor Standards Act (FLSA). Quantum meruit allows workers to recover civil damages for the work they provided. The employer does not get to enjoy the workers’ labor for free.

While the FLSA does not expressly require that a minimum wage must be paid promptly, it is held as being violated unless the minimum wage is paid on the employee’s regular payday and once the employee has completed work for which he must be compensated. It is the Congressional intent of the FLSA to protect employees so 29 U.S.C.S. § 206(b) has been  held to extend to both late payments and non-payments of wages.

While the FLSA does not expressly require that a minimum wage must be paid promptly, there are case laws holding that the FLSA “is violated unless the minimum wage is paid on the employee’s regular payday,” and once the employee has completed work for which he must be compensated. Biggs v. Wilson, 1 F.3d 1537, 38-41 (9th Cir. 1993), cert. denied, 127 L. Ed. 2d 94,     U.S.    , 114 S. Ct. 902 (1994). See also Olson v. Superior Pontiac-GMC, Inc., 765 F.2d 1570, 1579 (11th Cir. 1985), modified, 776 F.2d 265 (1985). Numerous Circuit Courts (including the 6th Cir., 2d Cir., 9th Cir., 7th Cir., 4th Cir.) have held that late payment of wages, as well as nonpayment, violates the FLSA. Numerous district courts through out the country including Louisiana and Texas have held that suing for late payroll checks is a cognizable claim under the FLSA.
Call Now
Directions