Withholding Paychecks a violation of the California Labor Law


. By Jane Mundy

Withholding an employee's pay check is, without a shadow of doubt, a violation of the California Labor Law, so why do some people think they are above the law? What right does Geraldine's boss have to not pay her in a timely manner and then have the audacity to shortchange her?

Geraldine prepares income tax returns and worked for a small branch of a major tax company for two tax seasons—from January to April last year and this year. "Last year my boss didn't pay me until September and I made the big mistake of going back again this year," says Geraldine.

"There was no reason to hold my check; I would call him constantly and ask for payment but he always had an excuse; usually he said 'I will call you right back,' but of course he never did. When I finally did get paid, my check was $300 short. His excuse was that another tax preparer ( a co-worker) complained that a client under my name was his and this other guy should have received that money. But I asked my co-worker and he never got my $300. In other words, my employer lied to both of us and pocketed my pay.

I didn't do anything about it; I figured he wouldn't pay me and besides that, I had lost my receipts so I had no proof.

I worked for him again this year and it got worse. This time he didn't even pay my regular hourly wage--my contract states that I get paid hourly wages while I wait for clients ( $11 per hour) and commission for tax returns. He was behind one or two weeks in payroll for everyone—5 or 6 of us working in the office. I finally got paid my hourly wages but never did get paid my commission. My commission is supposed to be paid monthly; however he was always behind, sometimes by two months. But I couldn't quit because the contract said if I didn't complete the tax season I would not receive any commission.

The last commission he owed me was $900. I told him I would take him to court if he didn't pay. Finally I received a check for $400 but it bounced. I went to his bank every week and was able to cash it a few months ago but he still owes me $500 and refuses to pay. Now he says that I didn't finish the tax returns for some clients but I know they were completed. I have all my clients' names and have documentation that he indeed owes this money.

I went to small claims court and was given the forms to fill out. Then I spoke with an assistant attorney at small claims. She told me that if I take him to court, I can ask for a review and not only get my commission from this year, but also the monies he owes from last year. Even then, I was hopeful that I could deal with this in a civilized manner. My employer told me to send my report but he still refuses to pay commission. And that is illegal. So now my only recourse is to take him to court.

I recently talked to the main branch of this tax company and complained about my boss. The head of the company said she would call him and make sure I was paid within 24 hours. That was in May and I haven't heard a word back—I wonder who does their tax returns..."


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