An employer may cancel a former worker’s insurance arrangement after...

An employer may cancel a former worker’s insurance arrangement after repeated late payments. Credit: iStock

I would also like to recover the six paychecks the company owes me. Some of my colleagues are owed even more. We have been in a state work-share program for over a year, meaning that we get two days of unemployment benefits a week because our company can't afford us full time.

But I feel it is taking advantage of us because we have nowhere else to go for a job. So first our paychecks shrank and then some disappeared. What can I do? -- Frustrated

First of all, it is breaking the state's frequency-of-payment law, which requires employers to pay most employees at least twice a month. So paying you every three weeks instead of two, is most likely illegal.

And then by not paying you at all, the employer is breaking federal and state minimum-wage laws, which require you to be paid at least $7.25 an hour, not zero.

And if you and any of your colleagues have worked long enough during your three-day weeks to tote up more than 40 hours, your company could be on the hook for overtime violations.

It's unfortunate when a company runs into financial problems, something that has become increasingly common in this tough economic climate. But if a company wants to use your labor, it has to pay for it and in a timely fashion. That's the law.

 

 

Here's the problem: He is consistently late with his payment to us, up to three weeks at a time. My husband does not know if he is responsible for paying the employee's premium when it is due, in the hope that the ex-employee will eventually come through with the money. Or my husband wonders if he should just wait until he receives the guy's payment and then forward it to the insurance company. I am under the impression that late payments to insurance companies can affect a company's credit rating -- and possibly my husband's personal credit rating.

In fact, the insurer told us that we must send the premium in for him; so we cannot leave it up to him to cover his own. It is very frustrating and a little nerve-racking, as we are not sure whether he will be paying each month. What are our rights here? -- Payment Nightmare

"That would mean explaining that his late payments are causing them a problem and that they cannot afford to make the payments for him," the department said.

If the problem persists, you have a right to cancel the COBRA arrangement. "If he continues to be very late, they do have the legal right to stop providing him with COBRA," the department said.

Call the New York Labor Department for help at 516-794-8195 or 212-775-3880.

 

 

 

 

 

 

 

  • Check here for more on COBRA coverage go to http://1.usa.gov/xWIt4w.
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  • Look here for more on frequency of wage payments and state law go to http://bit.ly/AysydG.
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