Q. We’re closing our doors and firing all of our employees. As president, I am considering not paying my employees their final paychecks, even though they have earned that pay. Is this a risk?
A. Yes. The North Carolina Wage and Hour Act requires employers to pay earned wages when they are due. An employer that violates this provision may be sued under the act, which carries with it the prospect of liquidated (read: double) damages and an award to cover attorneys’ fees incurred in prosecuting the lawsuit.
“Employer” is defined by the act to include “any person acting directly or indirectly in the interest of an employer in relation to an employee.” This language is likely broad enough to include you as the company president. You could be personally liable for wage payments if your business fails to make the payment.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/8943/will-i-get-into-trouble-for-withholding-final-paychecks-from-soon-to-be-former-employees "
- OK to suspend employee who has been arrested if alleged violation would compromise safety
- You won't work Sundays?! EEOC guide explains religious accommodations
- What can we do to protect ourselves? A worker leveled threats after we fired him
- Detailed investigations help distinguish punishments
- Not all offenses are equal--make the punishment fit the 'crime'