absolutely need assistance! This is why I have the subscription. Thank you for moderating.
Hello and thank you for entrusting me to assist you. My name is XXXXX XXXXX I will do everything I can to answer your question. Unfortunately, there is no good solution here. California law zealously protects an employee's right to be paid for all work performed and in most circumstances mandates that such work be paid in full no less than twice a month. (Labor Code 204) An employer who fails to comply with these wage payment obligations will be penalized in the amount of $200 per paycheck violation. (Labor Code 210) If the employer drafts a payroll check that bounces, they will be penalized in the amount of the employee's daily rate of pay for each day that the full wages go unpaid up to 30 days. (Labor Code 203.1)In cases where it can be proven that an employer willfully failed to pay wages (meaning they knew in advance they couldn't pay but had the employee work anyway) they can be charged with a misdemeanor crime. (Labor Codes 215, 216)The unfortunate answer to your question is simple: you need to figure out a way to make payroll--even if it means selling company assets or taking out a loan--or you need to layoff the employees you can't afford to keep. To do otherwise will risk catastrophic penalties and potentially even criminal charges.I am truly sorry that I don't have more favorable information to provide you, but you are here for accurate information about the law and it would be a tremendous disservice if I were to mislead you for the sake of providing good news.Please do not hesitate to contact me with followup question if you have any. I am not done assisting you until you are absolutely satisfied with my service.
Patrick, Thank you for making the penalty clear. Would love to sell assets or take a loan; bank won't allow it. We'll have to muddle through. Penalties are civil to the company? Officers? I'm a contractor who doesn't sign anything; my company provides "CFO Services" to this company. Hoping to be part of the solution. Do I have liability?
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