Late paychecks, resulting in late fees.

[Jmall]

Jurisdiction

Vermont

Recently my company had unexpected issues with payroll, resulting in late/no paychecks for the entire company.

I am now at the capacity of what I can pay for out of pocket. I am owed two back paychecks.

My bills are all late due to not getting paid, resulting in late fees and overdraft fees from various sources.

I asked HR if I could charge the company for those bills, this was her response:

"We are planning on submitting a payroll for July 31. As far as the overdraft and late fees, I don't believe that is (the company)'s responsibility."

What is the legality behind this? It seems like simple logic that my company should compensate me for late fees that are a direct result of them not paying me.

 

[PayrollHRGuy]

Here is the law they are violating.

https://legislature.vermont.gov/statutes/section/21/005/00342

Here is the punishment.

Vermont Laws

 

[Jmall]

Vermont is a no cause state for firing though, I am afraid that if I take this up with them I will simply be fired for "other" reasons...

Is there a way I can go about this, without having that happen?

 

[adjusterjack]

What is the legality behind this? It seems like simple logic that my company should compensate me for late fees that are a direct result of them not paying me.

No, they have no legal obligation to do so.

Your employer is not responsible for you living paycheck to paycheck and not having an emergency fund to cover your bills.

 

[zddoodah]

What is the legality behind this?

The prior response already covered your employer's violation of the law.

Beyond that, you can "charge" your employer whatever you want. However, if the employer doesn't voluntarily pay it, the only way to recover would be to sue the employer, which probably would guarantee that you'll get fired.

It seems like simple logic that my company should compensate me for late fees that are a direct result of them not paying me.

Well...if I were representing your employer, my argument would be that the charges resulted from your failure to structure your finances in such a way as to have a reserve fund for unexpected situations such as this. Also, while late fees might be legitimate, any overdraft fees are entirely your fault. When you write a check, it's your responsibility to ensure that your account has enough money to cover the check. If you wrote a check knowing that you couldn't cover it (or without ensuring that you had money to cover it), then that's entirely on you.

I am afraid that if I take this up with them I will simply be fired for "other" reasons...

Is there a way I can go about this, without having that happen?

We have no way of knowing how your employer (who is unknown to us) might react and no way of intelligently recommending a way to approach this without the risk of firing. That said, you told us that you already broached the subject with an HR person, so I can't imagine why you wouldn't continue the discussion with the info provided in the prior response.

Here is the law they are violating.

...

Here is the punishment.

FYI, both of your links went to the same place.

 

[Jmall]

No, they have no legal obligation to do so.

Your employer is not responsible for you living paycheck to paycheck and not having an emergency fund to cover your bills.

What do you mean? I am not living paycheck to paycheck, and my employer is not responsible for my bills. However they haven't paid me in a month. They've missed two paychecks, about to be a third. This has serious consequences, how long am I expected to hold out?

 

[PayrollHRGuy]

Oops, this replaces one of my links. Vermont Laws

 

[cbg]

Let's put it this way. There isn't any law you can invoke that will force the employer to pay you for overdrafts or late fees.

I completely understand your position and I don't say you're wrong.to feel the way you do. But it's not something you are owed by law.