Navigating Salary Disputes: When Your Employer Fails to Pay

Navigating Salary Disputes: When Your Employer Fails to Pay

Dealing with an unpaid salary is frustrating and can create significant financial stress. Understanding your rights and the legal process is crucial in resolving such disputes. This guide will help you understand what to do if your employer is not paying your salary.

Understanding Payment Requirements

Generally, you must be paid for a completed work schedule. If you have not received your salary, you should start by contacting your state’s unemployment services. For Illinois, this would be the Illinois Department of Employment Security (IDES). Being laid off or fired, regardless of your status, you have the legal right to your salary. You may need to file a claim in small claims court to recover your unpaid salary.

Checking Your Pay Period and Pay Schedule

Before taking any legal action, it’s important to verify your pay period and schedule. Here are some key considerations:

Pay Period: Determine if your salary is due based on your pay period. If it is a weekly pay period, it could be two weeks overdue. However, if it is a bi-weekly or bi-monthly pay period, your salary might not be due yet. New Employee Notion: Avoid the misconception that your employer is withholding your first paycheck. For a weekly payroll, you typically receive payment in the following week. So, in a bi-weekly payroll, it could be the end of your third week before your first check.

Even if you are a new employee, this misconception is a common fallacy. Always verify the actual payment schedule.

Legal Protections and Disputes

Under no circumstances can your employer legally delay or skip paying you, even if you agree to not be paid because they are in financial trouble. Such an agreement is inherently void and legally unenforceable. You cannot agree to work for free except as a volunteer for a registered charity or a family-owned company.

Filing a Wage Collection Complaint

If your employer has not paid your salary, you should file a wage collection complaint with your state’s Department of Labor. Additionally, you can file a complaint with the federal Department of Labor.

By following these steps, you can take the necessary actions to resolve your salary dispute and ensure that you receive your rightful compensation. Remember, timely action is critical to safeguarding your rights and financial well-being.