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.