Company can't cover my final paycheck - what legal options do I have with ESD?
I'm in a really stressful situation right now. My employer gave me my final paycheck dated for 10/13, but it's been over a week and I still can't cash it because the company literally has no money in their account. I've tried calling the payroll department but they just keep saying "we're working on getting funds" but nothing happens. I'm filing for unemployment because obviously the company is going under, but I need that final paycheck NOW to cover rent. This is 9 days late already! Do I file a wage complaint with L&I? Call the Attorney General? Wait for the company to magically find money? Has anyone dealt with a bouncing final paycheck while also applying for unemployment? Will this mess up my ESD claim if I report the final paycheck but haven't actually received the money?
21 comments
Dmitry Kuznetsov
You need to file a wage complaint with L&I immediately. By law in Washington state, employers must pay you on your regular payday. If they don't have the funds, that's their problem, not yours. Go to the L&I website and file the complaint today: https://www.lni.wa.gov/workers-rights/wages/get-paid/ And yes, still report that final pay period on your unemployment application, but note that you haven't actually received payment. ESD and L&I systems do talk to each other, so they'll be aware of your wage complaint.
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Sofia Hernandez
•Thank you! I just went to the L&I site and started the complaint process. Do you know how long these typically take to resolve? I'm worried about covering next month's bills...
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Ava Thompson
OMG the SAME THING happened to me last yr!!! My company went broke and my last 2 checks bounced. I waited like 3 weeks hoping they'd fix it but they never did. Finally I called L&I and filed the thing. Took forever but I eventually got my $$ plus interest. Just make sure you save the actual check as proof!!!!
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Sofia Hernandez
•I still have the check, so that's good to know. When you say "took forever" - are we talking weeks or months? I'm trying to figure out if I need to borrow money from family in the meantime.
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Ava Thompson
For me it was like 2 months? But I think it depends on if ur employer fights it or not. Mine went bankrupt so nobody even responded to L&I's inquiries which made it take longer.
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Miguel Ramos
whats happening to your unemployment claim? have you been able to get through to anyone at ESD? i had so much trouble reaching them when my claim had issues
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Sofia Hernandez
•I just filed yesterday so my claim is still being processed. Haven't had to call ESD yet but I'm worried this paycheck situation will complicate things.
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Zainab Ibrahim
I had a similar issue with a failing company last year. Here's what you need to do: 1. File the L&I wage complaint as others mentioned 2. Document EVERYTHING - keep the check, any emails about payment, take screenshots of your bank attempts to cash it 3. When reporting wages to ESD, report the pay period earnings even though you haven't received the money 4. In the comments section of your weekly claim, note that you have not actually received the funds 5. If your company files bankruptcy, you'll need to also file as a creditor in the bankruptcy proceeding L&I can sometimes expedite wage claims when it's a final paycheck, so specifically mention that in your complaint. You have legal priority over other creditors for unpaid wages in a bankruptcy situation.
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StarSailor
This situation totally sucks and I went through something kinda similar. Just make sure when you file your weekly claims with ESD that you DON'T report having received that money yet because you haven't actually received it! Only report income you've actually gotten. You can explain in the comments section. If you report income you haven't received, you'll get less unemployment benefits when you actually need them most.
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Zainab Ibrahim
•This is incorrect advice. You must report earnings for the week you worked, not when you get paid. ESD looks at when the work was performed, not when payment was received. Failing to report those earnings could result in an overpayment issue later.
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StarSailor
•Really? That's not what the ESD person told me when I called! They said to report when I actually get paid. Now I'm confused...
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Connor O'Brien
I'm dealing with a similar situation now. One thing that helped me was getting through to someone at ESD who could note my account about the wage complaint. I tried calling for days but kept getting disconnected due to "high call volume." I finally used Claimyr (claimyr.com) to get through to an ESD agent. They have a service that helps you bypass the phone queue and actually speak to someone. There's a video that shows how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 Once I got through, the ESD agent was able to add notes to my claim about the wage complaint and advised me exactly how to handle the weekly certification. It was actually really helpful to talk to a real person instead of trying to figure everything out from their website.
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Sofia Hernandez
•I hadn't heard of this service before. I'm definitely going to check it out because I know I'll need to talk to someone at ESD to sort this out. Thanks for the tip!
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Yara Sabbagh
You need to understand that these are two separate issues: 1. Your unpaid wages - this is an L&I issue through a wage complaint 2. Your unemployment benefits - this is an ESD issue For your unemployment claim, you should report the earnings from that final pay period when filing your initial claim, but clearly indicate the payment has not been received. This is important because your monetary determination (how much weekly benefit you can receive) is based on your earnings history, including that final period. I would also suggest documenting the wage complaint number and providing that to ESD if they request additional information. This helps prevent any confusion about whether you've accurately reported all earnings. For immediate financial needs, you might want to look into hardship assistance programs while waiting for both the wage claim and unemployment to process. 211 is a good resource to find local assistance options.
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Miguel Ramos
thats so crazy they can just not pay you!! i would be so mad
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Sofia Hernandez
•I'm beyond mad at this point. Just trying to figure out how to get through the next month without that money I earned.
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Keisha Johnson
The whole system is RIGGED against workers! I went through this EXACT same thing last year with a company that was clearly insolvent for months but kept making us come to work. They KNEW they couldn't make payroll but said NOTHING until checks started bouncing. Then it was all "we're working on it" BS while the owners were probably hiding assets!!! I filed with L&I and it took FOUR MONTHS to get my money and even then I only got about 75% of what I was owed because they claimed some BS about calculation errors. Meanwhile the owner bought a new boat (saw it on his Facebook). The ESD system will ABSOLUTELY use this against you too - they'll count that money as income even though you never got it, and then when you finally do get it months later, they'll count it AGAIN and hit you with an overpayment notice!!! DOCUMENT EVERYTHING!!!!!
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Yara Sabbagh
•That's not accurate about ESD counting it twice. If you properly document and report the situation, they won't count the same earnings twice. It's important not to spread misinformation that might lead people to incorrectly report their earnings.
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Ava Thompson
also just a heads up that when u file with L&I they might ask for bank statements to prove u tried to cash the check and it didnt work
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Dmitry Kuznetsov
One more important thing - Washington state law provides for double damages in some wage theft cases. When you file with L&I, they can assess a penalty against the employer. So you might eventually get more than just your unpaid wages. Also, regarding your unemployment claim - when you do your weekly claims, there's a section for comments. Always note there that you have a pending wage claim with L&I for your final paycheck. This creates a record that you've been transparent about the situation.
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Sofia Hernandez
•Double damages would be amazing given the stress this is causing. I've already had to contact my landlord about a late payment. I'll definitely add comments to my weekly claims about the wage complaint - that's really helpful advice.
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