This is an anonymous post from an Elpha member.

Company is behind 2 pay periods

Yer73·Jul 11, 2022

Posted in:Advice

Hello,

I tried to research posts to see if anyone has had experience with this since many startups are featured on Elpha but I have not found anything similar.

I work at a very small start up (10 employees). Due to lack of funding, I have not had insurance for 2mths (to be fair, they did pay for the COBRA extension). We will allegedly have coverage starting August 1st. I say allegedly because The other issue being that they have delayed checks multiple times over the course of the past couple of months. The first check was only a few days late so I wasn't too worried as start up funding it is an issue across-the-board for many companies but then the following checks were delayed by two weeks and then at one point it was delayed for a months worth of checks then they were finally caught up only to be delayed on the next track and this Friday I will be delayed another month of pay and nothing has changed and the workload or the demand. I guess, I am wondering if it would be rude or risky to say I will not be doing any work until I am paid my backpay while I understand this is common in the start up world I also am concerned of the looming recession and have bills to pay so I'm not sure how to handle this.

I have interviews with other companies that look promising but my other concern is if I jump ship well they just not pay me at all and while I know I can go the legal route after attorney fees and court fees is it even worth doing that?

annamiller·Jul 11, 2022

They are required to pay you for the work you provided, regardless of when you quit or leave. You can also use the legal route to provide extra motivation to get paid. Another route it to ask for payment in installments. You can keep emailing the CEO or the person who provides the payment to request the payments to be made, even if they promise to pay but not respond.

Janna107·Jul 11, 2022

Wow, is this seriously considered a common thing in startups? That is crazy.

Filomena21·Jul 12, 2022

It’s common only when the startup is imminently about to go out of business.

Ruthie89·Jul 12, 2022

First of all, document everything you are owed, including any contract or employment agreements. Second, take your documentation to the CFO or whomever handles financing (obviously, keep copies). Tell them that unless you are paid by Date X, you will submit the documentation to your appropriate state employment agency. Also tell them that if you are not paid by Date X, you will not do any more work until you are paid. (No need to mention lawyers yet; try that first.) As an independent contractor, I don’t do any work for places that run more than 30 days behind. I very nicely let them know I am not available, and when I am paid, I will be. I had to do this at the beginning of June, when I was still owed for an April invoice. I got paid the next day.

DianePrince·Jul 12, 2022

Yes, they're required to pay you, but if they don't have the money, that doesn't matter. Rude, no. Risky, could be. That depends on if you have a cushion or not. But if they continue not paying you, then what are you risking? If you go the legal route, you will go through your state employment office and won't rack up attorney and court fees. I'd jump ship without hesitation as soon as you get another offer. If the current company doesn't pay you for what you've worked, file a claim with the EDD. You will probably win, but then it becomes a collections issue. You'll get through it, but it's a sh*tty situation for sure!

Sherie25·Jul 12, 2022

you are owed the money. I would not work until getting paid. Contact the EEO office in your area for their advice on legal action. Good luck in the job search, NEXT!

Jannay·Jul 12, 2022

There is nothing wrong by gently explaining the financial issues your company has. You don’t want to bad mouth your employer, but just share enough the situation concerns you.While I haven’t been paid late, I did work for a company whose payroll checks bounced. More than once. It doesn’t matter how much you like your job, if they can’t manage payroll, they’re in trouble. Run!