California - Bay Area S2000 Owners California Bay Area S2000 Owners Group

Tax evasion/ Corporate payroll scam?

Thread Tools
 
Old 06-01-2011, 03:56 PM
  #1  

Thread Starter
 
Fujin's Avatar
 
Join Date: Nov 2010
Posts: 1,096
Received 2 Likes on 1 Post
Default Tax evasion/ Corporate payroll scam?

Can an employer hold back one weeks pay if they move to a new payroll schedule? They offer a loan for the half a paycheck we will lose but state if we leave the company before its completely paid back we owe them the remainder? Isn't this basically making us all work for free for one week? This seems very illegal.
Old 06-01-2011, 04:31 PM
  #2  

 
rrounds's Avatar
 
Join Date: Oct 2010
Location: Sacramento
Posts: 2,572
Received 247 Likes on 176 Posts
Default

How about people that get paid once a month or every other week?
When my company went from once a week paychecks to once a month checks(to save money on payroll expense) they did offer a low interest loan to help people get though that first month. I don't remember how it was supposed to be paid back(I didn't use the loan). You should get paid for all hours worked just one week later if I under stand the ?, if not paid for all hours worked then yes that's illegal.

ROD
Old 06-01-2011, 04:51 PM
  #3  

Thread Starter
 
Fujin's Avatar
 
Join Date: Nov 2010
Posts: 1,096
Received 2 Likes on 1 Post
Default

Originally Posted by rrounds
How about people that get paid once a month or every other week?
When my company went from once a week paychecks to once a month checks(to save money on payroll expense) they did offer a low interest loan to help people get though that first month. I don't remember how it was supposed to be paid back(I didn't use the loan). You should get paid for all hours worked just one week later if I under stand the ?, if not paid for all hours worked then yes that's illegal.

ROD
Yea that's what I thought but they aren't changing our pay days. We simply just lose one week. Its not like we have to wait a bit longer to recover it.
Old 06-01-2011, 04:57 PM
  #4  

 
tkeyyy's Avatar
 
Join Date: Oct 2008
Location: Bay Area, California
Posts: 6,765
Likes: 0
Received 2 Likes on 2 Posts
Default

they can hold it back but they have to give it back on the following paycheck. i think frys did that awhile back when i first started working there and they gave it back immediately on the following week
Old 06-01-2011, 05:10 PM
  #5  

Thread Starter
 
Fujin's Avatar
 
Join Date: Nov 2010
Posts: 1,096
Received 2 Likes on 1 Post
Default

So they aren't giving it back. They actually stated our salary for 2011 will be 1 week less. What should I do?
Old 06-01-2011, 05:16 PM
  #6  

 
tkeyyy's Avatar
 
Join Date: Oct 2008
Location: Bay Area, California
Posts: 6,765
Likes: 0
Received 2 Likes on 2 Posts
Default

so they're pretty much stealing your money to pay for their needs.
see if they can provide a legitimate reason on why they're taking your money (or if it'll benefit you later)
but talk to your boss first and if nothing happens then try talking to a lawyer

you didn't sign any sort of petition right? they're just doing this on short notice?
Old 06-01-2011, 05:38 PM
  #7  
Registered User
 
S2KN05's Avatar
 
Join Date: Feb 2010
Location: San Jose
Posts: 1,730
Likes: 0
Received 1 Like on 1 Post
Default

If you're sure that they are not holding the week pay until the next pay check and they are not paying you for the week you worked then you can report them to the department of labor.
Old 06-01-2011, 08:29 PM
  #8  
Registered User

 
rob-2's Avatar
 
Join Date: Jul 2009
Posts: 8,657
Received 170 Likes on 125 Posts
Default

I'm not sure this is actually illegal. The company may state this is a 1/52 wage reduction, across all employees. If you're working for minimum wage and this would put you below the hourly minimum, yes illegal. It's the opposite for not getting overtime as a salaried employee.

Still feel like we're missing info here. I would suggest asking around, determining the week you won't be getting paid and telling your boss (if you're so inclined) that you'll be not working without pay and he shouldn't expect you in that week.
Old 06-01-2011, 10:44 PM
  #9  

 
DaPhatty's Avatar
 
Join Date: May 2005
Location: Pacifica/Elk Grove, CA
Posts: 1,881
Likes: 0
Received 0 Likes on 0 Posts
Default

If I am understanding your description correctly, your company is implementing a 1 week in arrears pay schedule. You will still get the money, eventually, just not as quickly. You could always call the CA Dept. of Labor for help.
Old 06-02-2011, 12:06 AM
  #10  

Thread Starter
 
Fujin's Avatar
 
Join Date: Nov 2010
Posts: 1,096
Received 2 Likes on 1 Post
Default

Originally Posted by rob-2
I'm not sure this is actually illegal. The company may state this is a 1/52 wage reduction, across all employees. If you're working for minimum wage and this would put you below the hourly minimum, yes illegal. It's the opposite for not getting overtime as a salaried employee.

Still feel like we're missing info here. I would suggest asking around, determining the week you won't be getting paid and telling your boss (if you're so inclined) that you'll be not working without pay and he shouldn't expect you in that week.
Yea I'm starting to think something is missing too. Seems like the information is incomplete or at the very least poorly communicated. gonna do some digging tomorrow with some higher ups and see what I can find out.


Quick Reply: Tax evasion/ Corporate payroll scam?



All times are GMT -8. The time now is 12:48 AM.