My fiance works as a martial arts instructor in Maryland and has done so for years. Within the past year and a half-two years we have discovered a number of unsavory practices going on in the management end of the school. Among them are the perpetually late and bouncing paychecks. The employees are to be paid every month on the 1st and 16th, or the following business day should those fall on a Sunday. There is either an absurdly vague excuse, the owner will not come into the school on pay days and will notify his "office manager" to also not go in to work to avoid confrontation, or will blow off any questions as to why the checks are late.
What would be the legally binding statute that states that the paychecks must be paid on time? It's gotten to the point where the paychecks are running within 3-4 days of each other between getting them late, then having them bounce and having to be paid again.
We have discovered that the employer has been running the business more or less under the table. This is definitely a FOR PROFIT venture, not an NPO or otherwise tax-exempt organization. He's bought 3 cars in the last year and has been in 3 houses in the last two. Not a single employee is provided a W-2 or any benefits whatsoever, and to our knowledge the business itself is not taxed probably because of his misrepresenting it.
Out of fury and curiosity, I went onto the Montgomery County court case website to research the owner and he has over 50 cases dating back to 1988 in which he was the defendant in matters regarding bounced checks, non-payment for services, unsavory trade practices, foreclosures and non-payment on the Aston Martin he purchased less than six months ago (on the "office manager's" credit). He has been sued for over $26,000 in the past 18mos. He and the office manager blatantly disregard requests by the parents to either end memberships or put them on hold in the event of a vacation or prolonged absence from class. He basically hires students who have attended his classes long enough and are in high school, as part time assistant instructors. Those who have stayed with him post-high school have been the ones screwed as he takes advantage of the relationships he develops with these kids. A few of his employees have even been pulled into living in his house while working for him and are threatened with homelessness and unemployment should things start going sourly for him. What legal action can we take against him that will not, or will minimally impact the employees? We're aware that it may result in the school being shut down, but its so ridiculous the way things are going now that we really don't care. Would the employees be liable for back taxes?
I am also looking to find laws that govern the way gyms or places like the martial arts school are run, especially regarding health and safety of the clients and employees, but I may have to post that question in another thread.
Sorry to have rambled, but to sum up I am looking for-
a: The statute governing the proper timing of payment and availability of funds for employees
b: legal action we can take against the owner that will hopefully minimally impact the employees
c: to what extent are the employees actually liable?
d: health and safety specs regarding gyms or health places
I'm sure we'll need to get a lawyer for clarity on some of this but it would be wonderful if anyone knows anything specific. Thanks so much for your assistance.
What would be the legally binding statute that states that the paychecks must be paid on time? It's gotten to the point where the paychecks are running within 3-4 days of each other between getting them late, then having them bounce and having to be paid again.
We have discovered that the employer has been running the business more or less under the table. This is definitely a FOR PROFIT venture, not an NPO or otherwise tax-exempt organization. He's bought 3 cars in the last year and has been in 3 houses in the last two. Not a single employee is provided a W-2 or any benefits whatsoever, and to our knowledge the business itself is not taxed probably because of his misrepresenting it.
Out of fury and curiosity, I went onto the Montgomery County court case website to research the owner and he has over 50 cases dating back to 1988 in which he was the defendant in matters regarding bounced checks, non-payment for services, unsavory trade practices, foreclosures and non-payment on the Aston Martin he purchased less than six months ago (on the "office manager's" credit). He has been sued for over $26,000 in the past 18mos. He and the office manager blatantly disregard requests by the parents to either end memberships or put them on hold in the event of a vacation or prolonged absence from class. He basically hires students who have attended his classes long enough and are in high school, as part time assistant instructors. Those who have stayed with him post-high school have been the ones screwed as he takes advantage of the relationships he develops with these kids. A few of his employees have even been pulled into living in his house while working for him and are threatened with homelessness and unemployment should things start going sourly for him. What legal action can we take against him that will not, or will minimally impact the employees? We're aware that it may result in the school being shut down, but its so ridiculous the way things are going now that we really don't care. Would the employees be liable for back taxes?
I am also looking to find laws that govern the way gyms or places like the martial arts school are run, especially regarding health and safety of the clients and employees, but I may have to post that question in another thread.
Sorry to have rambled, but to sum up I am looking for-
a: The statute governing the proper timing of payment and availability of funds for employees
b: legal action we can take against the owner that will hopefully minimally impact the employees
c: to what extent are the employees actually liable?
d: health and safety specs regarding gyms or health places
I'm sure we'll need to get a lawyer for clarity on some of this but it would be wonderful if anyone knows anything specific. Thanks so much for your assistance.
