Employer in trouble

[someguyoutthere]

This situation is happening in Michigan.

Since September my wife has worked for a company that's in serious financial trouble. When she interviewed they never let on how bad the situation is, apart from vague comments about Michigan's economy in general. But their situation is bad. She's been consistently paid (because she demands that) but that hasn't been the case for everyone.

The latest whispered news is that they won't make payroll tomorrow for any staff, and that the interim CEO is resigning tomorrow.

* If they don't fire or lay her off, but she doesn't get paid, can she file for unemployment? Is there a time period that must elapse before they're considered to be delinquent in paying her?

* She considers the possibly outgoing interim CEO to be one of her stronger allies--not sure about whoever might be taking the CEO's place. Should she ask the CEO to lay her off unless/until she can be paid? Is that even the right term? Or furloughed? Would she then be able to get unemployment? Should she discuss this with an attorney?

* Can she sue the company for misrepresentation, given that they hired her knowing what dire circumstances they were in?

 

[eerelations]

I don't know the answer to your first point but someone else will, so hang in for that one.

Regarding your second point, she can ask the CEO to lay her off, however, he doesn't have to comply. If he does lay her off, she will probably be entitled to UI benefits.

Regarding your third point, your wife doesn't have a case for misrepresentation. Employers are not required to disclose their financial situations (good/bad/indifferent) to prospective employees.

 

[mlane58]

* If they don't fire or lay her off, but she doesn't get paid, can she file for unemployment? Is there a time period that must elapse before they're considered to be delinquent in paying her?

She can file for unemployment and make a wage claim to your state DOL for wages owed and what time frame they have to pay them in.

 

[ecmst12]

If she's still working, but not being paid, then she files an unpaid wages claim with the DOL, NOT unemployment. She can file unemployment if she's laid off.

 

[pattytx]

If there has been a history of late/nonpayment of wages, it's possible that could be good cause for quitting that would not disqualify her for unemployment benefits, but only the state can make that decision. And of course, she has to quit to find out.

Based on this

Although Missouri has no "Wage Collection Law", we answer questions for the public about their rights and procedures under the Wage and Hour laws.

, it's possible she may have to file a civil suit for her unpaid wages, or file with the federal DOL (which only enforces wage payments to the extent of the federal minimum wage). The state DOL can answer this question.

 

[mlane58]

If she's still working, but not being paid, then she files an unpaid wages claim with the DOL, NOT unemployment. She can file unemployment if she's laid off.

That not quite true. Most states will grant benefits for a number of reasons even though you are still employed.

 

[TinkerBelleLuvr]

Has the OP's wife made an appointment with the unemployment office to explain the situation? They can provide guidance. I know that most people cannot afford to go to work for zero dollars when they are expecting a paycheck.

 

[pattytx]

Has the OP's wife made an appointment with the unemployment office to explain the situation? They can provide guidance. I know that most people cannot afford to go to work for zero dollars when they are expecting a paycheck.

Even so, my experience is that the UI office will not express an opinion on whether or not benefits will be granted based on specific circumstances. Generally, they will say they cannot do so, and go ahead and file and a determination will be made. In any case, the UI representative she may talk to on the phone can't commit to a certain Yay or Nay.

 

[TinkerBelleLuvr]

The OP's wife may want to consider finding a different job. The question is: is it quitting if they aren't paying you for the time that you spend there?

For example (assuming pay weekly), my payweek ended Friday, November 9 with payday November 16. They don't pay you on 11/16. So, when they ask what was the last date they paid you, what are they going to say to the UE office? Oh, payday was 11/16 for week 11/9? I figure if someone quits paying me to work, they've laid me off. I certainly didn't quit, because I was there EXPECTING to be paid for my time.

Is it quitting to stop working for NO pay?

In any case, here are some good phone numbers to call:
http://www.workplacefairness.org/agencies_MI?view=print

Michigan Department of Consumer and Industry Services
Wage and Hour Division
7150 Harris Drive, Box 30476
Lansing, MI 48909-7976
Phone: (517) 322-1825
Web Address: http://www.michigan.gov/bwuc/0,1607,7-161-15499_15542---,00.html
Agency Description/Mission: The Wage & Hour Division investigates complaints alleging non-payment of wages and fringe benefits, state minimum wage, overtime, equal pay, and prevailing wage disputes; and monitors youth employment standards including hours of work, and safe, non-hazardous working conditions. The division also educates employers and employees in the areas covered by these labor standards.