Issues Arising Years after the 2008 Financial Crisis
For businesses that were affected by the 2008 financial crisis, there could be the need to cut back on employees. Taking the proper precautions with regard to abiding by the laws that provide for employees to receive their final paycheck will help an employer to avoid crossing the line. Providing an employee with the wages which they are entitled will help a business to avoid receiving a Wage Demand Letter From the State. If a business does receive such a demand, there will likely be a legal process to proceed through in order to determine what the liability is. Each state has different laws which determine what the penalty will be when a business fails to provide their employees with the wages they are entitled to after being terminated. Typically, employees are to receive their final check no later than the next scheduled pay period.
When Companies Cannot Pay Employees Who are Terminated
Given the huge down turn in the stock markets and property values in the United States, it became common for many businesses to be looking at a very depressing situation where their holdings were concerned. Many of the investments that were typically seen as having incredibly low risk tanked altogether, and where many people lost their pensions, companies lost liquidity. For those companies who were in debt, the crisis was that much more potent. Having both diminished resources and diminished product/service demand resulted in a situation that ultimately necessitated the downsizing of many businesses. The courts are not very understanding when a business cannot pay its employees, but in extreme situations there may be some room for leniency. Making it a point to ensure that employees receive their final paycheck before paying off other creditors may be looked upon favorably by the courts.
The Right to Swift Settlement
If a former employee possesses proof that an employer refused to pay them their final wages, the courts tend to be very swift in siding with the former employee. Despite the amount of financial upheaval that continues to occur as a result of the 2008 financial crisis, employers are expected to pay out any wages they might owe. Having an attorney representing the business in question can help to reduce fines or other penalties the business might be facing. Given the fact that the fines can total more than the wages the business might be liable for, and for this reason consulting with an attorney could definitely lead to favorable results. Every case is unique, and taking the time necessary to evaluate whether or not fines and other penalties can be avoided will be best left in the hands of an experienced legal professional.