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My company, based in NYC, has not paid salary for the month of April 2019. There is no update for when salary will be paid out, but it looks like it might happen until shortly after May 20, 2019. I'm optimistic, but also skeptical about this. I'm also expecting a bonus payment for 2018 that has not been paid yet either. It is a long story, but apparently the funds are currently frozen in another country due to the firm being a 3rd party in an ongoing investigation that is coming to a close.

My fear is if I resign I will not get paid my salary or my bonus. The problem is I am going to begin to feel the pinch financially and will need to begin taking some drastic measures to pay my bills. What actions should I take here, from the following options?

• Do nothing and wait.


• Quit my job, seek new employment, and await payment of April 2019 and May 2019 salary (foregoing any bonus payment).


• Get a second job ASAP (bussing tables or something).


• Stop going to work until I am paid salary.


• Seek a personal loan from friends or family.


• Take out a personal loan from a lender of 5k USD to 10k USD.


• Withdraw IRA funds with early-withdrawl penalty.


• Take a hit on the credit card payments if I am unable to pay off the full amount.


• Move back in with parents and get a job out of state.

Please let me know if you have any questions or other ideas.

UPDATE - Details are grim. I was counting on the bonus payment coming through during this period that my wife has been unable to work. As a result, we have already taken on a serious debt burden. Complicating matters is that we are somewhat settled in NYC with our son, but living on one income has been extremely challenging, and this might be the straw that breaks the camel's back.

Balance Sheet

• IRA: $210,000


• Current Personal Loan Debt: -$45,000


• Checking Account: $8,500


• Traditional Savings: $0.00 (already depleted)

Cash-flow

• Monthly expenses (including rent & loan repayment): -$8,500


• Monthly Income After-Tax (if paid salary): $10,400


• Monthly Income After-Tax (if not paid salary): $0.00

Upcoming expenses

• Credit Card (due May 8): -$6,995


• Rent payment (due June 1): -$3,225

If it was me, I would count the bonus lost. You need money to live, and they are not paying you so the answer is obvious: seek another job (or three). I'd have a chat with your manager about you stopping work and explaining that you are your family's sole source of income. How they react will dictate how you proceed.

If they get all upset with you, then leave, and find an employment lawyer ASAP.

If they are understanding then provide a date certain for the future payment. If you are still not paid by that date, then also find an employment lawyer.

If they are a decent company, they will rehire you and pay you the back pay plus bonus. However, you may not get a dime. These guys may be involved in illegal activity. You probably know how likely that is and it is probably best kept to yourself.

Borrowing further can turn this nightmare into a total disaster, you need to stop. Cashing out your retirement account is just borrowing at a very high interest rate. Get out there and earn money until you get this mess cleared up.

My fear is if I resign I will not get paid my salary or my bonus.

You will almost certainly get paid your salary up through the time you stop working. You might need to have a lawyer fetch it for you, but that salary is yours. They must pay it unless they prove something serious like you didn't come into work for that period. Before trying a lawyer, see if the state labor department will help you collect your pay. You already paid for those lawyers with your taxes, so you might as well get the benefit.

You also may be able to collect damages from not being paid. E.g. the interest on your credit card. Document the heck out of any costs caused by the failure to be paid on time.

You might be able to collect unemployment. You don't want to quit—they aren't paying you. That sounds like a layoff to me. That might solve your immediate problem. There's a set of circumstances where you technically quit but can still collect unemployment as if laid off. This may be one of them. Ask the unemployment people.

The bonus is trickier. If you have an explicit employment contract that spells out the bonus you are to receive, you may be able to collect that even if you quit. If not, then probably you won't be able to collect.

If it were me, the first thing that I'd check is if unemployment is possible. If it is, explain to your manager that you can't come into work until the salary starts again.

If you can't get unemployment, the next step is to look for a job that will at least pay the rent. You can blow off a credit card payment (although it will look bad on your credit). But failure to pay rent can get you evicted.

I would try calling the credit card company and making a deal. For example, they might be happy if you pay $200 this month and run up interest on the rest.

I would avoid loans other than what you already have. There's no evidence that any piece of the situation will improve with time. Pay the rent; buy food and utilities. Avoid optional costs. Make the minimum payments on any debt you already have.

If no unemployment and no quick hire job, then is when you should consider moving in with your parents. But give it a month. You seem to have enough in checking to buy basic expenses for that long. You might find a new job in that time. I mean a real job, not just bussing tables. Send out your CV immediately regardless of anything else in case something's there.

When you work for a company, there are a lot of expectations of you: prompt attendance, follow instructions, accept criticism, handle all the work stress, and all the things that go with good performance and a job well done.

In turn, the company has one obligation: to PAY YOU. On time, in full, every payday.

What you are describing is not a job. They are no longer your employer because they are not paying you. Yes, that's illegal, but it sounds like the company does not have the money to pay you and their excuses are just lip service.

You need to start looking for a new job now. Job search should now take up all your time. Your former employer still owes you the money, and you can take legal action or bring it up with the labor board, but it's time to start looking for work right away.

You should also contact the labor board and see if these circumstances allow you to file for unemployment benefits in the meantime.

Not paying your salary is a form is constructive dismissal. That is grounds for filing an unemployment claim — possibly the fastest way to get money for paying bills that doesn't put you into further debt. You can still sue to reclaim the wages owed to you, but that will take more time.

You should alert the NY State Department of Labor. Failure to pay salary is unlawful.

I have to warn you, most people's experience is that they never get paid anything. In California, employee back wages are a preferred item in corporate bankruptcy. No idea about New York.

Your question has generated a lot of discussion and advice about what to do regarding your employment and seeking to collect your salary. I can't add anything constructive there.

Here's what I would do with the $8.5k of cash that you have:

1. Pay rent. You need to keep a stable place to live for your family. If you are on good terms with your landlord, you might approach him/her about trying to defer for a month or two, but I don't think it will matter much; you are either going to be paid fairly quickly or it will take a few months to work through the system. You might arrange some way to reduce your rent by helping out with maintenance or other chores.




2. Budget a reasonable amount for food and household expenses for the next 2 months. No restaurant meals, no luxuries. Every dollar you spend reduces your cushion.




3. Start looking for another job. My wife had a similar experience with an employer not making their payroll; it did not end well. If it's to the point that they can't pay their workers, your company is not healthy.




4. If possible, stay current on your loan. If not, that's unfortunate, but all they can do is ask for more money later; they can't evict you. Pay the minimum required to keep your credit card current.

Hit the Panic button.

Ring up all your friends in your industry.

Try to find a replacement job, ASAP. Honestly, you should have done this the moment the company failed to pay your bonus due to financial difficulties (related to an investigation..)

Your Bonus ... and your back pay.. you can try to get them back in bankruptcy court ...

You are still employed... So it is easier to find a job while still employed...

But there is no need to tell the prospective employer about your financial difficulties.