Working at a Failing Restaurant

[TJHarris]

From a professional and ethical standpoint, what are your obligations to an establishment when your pay-check and those of your staff are repeatedly bouncing? I have never walked out on a job before, but I don't see the point of giving notice if I can't get compensated for my efforts. From a financial standpoint(gas is running $3.49/gallon), my commute is costing me. I would be better off sitting on the davenport and watching the soaps.

[Margo]

None. Call your state labor board. You won't be the creditor at the top of the list for negotiated payment of debt when bankruptcy happens.

I did once consider lodging a complaint against a former employer who repeatedly held up my paycheck because there was no money in the account. According to the LB, she could pay me 10 days late but after that it was actionable. Of course, you can't get blood from a stone (on topic, turnip) and I eventually made other plans and left the position.

Edit: re-edit.

Edited May 15, 2007 by Margo (log)

[Carolyn Tillie]

Yes, check with your state. This happened to me in California where bouncing a payroll check is against the law and the employee definitely has recourses (in some cases, receiving some of the penalty payments, etc.)

[LB Howes]

Leave and look for another job immediately, unless you want to continue working for free. It might sound hard-nosed, but you have to look our for yourself.

[gfweb]

Of course you should leave. It won't get better.

[gfron1]

Of course leave, but go now before any open positions are taken by co-workers.

[TJHarris]

Thanks for the input everyone. You are making the pending decision much easier.

[TJHarris]

Well, the owner hasn't been able to make good on what is owed to me, so I turned in my keys and left. Which brings up my next question: Anybody know who in SE Michigan is looking to hire a chef?

[Risi e Bisi]

There are alot of valuable career/life lessons to be learned from a failing restaurant.

Just feel fortunate, all you loss was just the job.

[Darcie B]

None. Call your state labor board. You won't be the creditor at the top of the list for negotiated payment of debt when bankruptcy happens.

I did once consider lodging a complaint against a former employer who repeatedly held up my paycheck because there was no money in the account. According to the LB, she could pay me 10 days late but after that it was actionable. Of course, you can't get blood from a stone (on topic, turnip) and I eventually made other plans and left the position.

Edit: re-edit.

←

Actually, employees are very near the top of repayment when bankruptcy happens; right up there with taxing authorities. Wages & benefits are considered a priority non-dischargeable obligation. If there are any assets, the employees should get paid.

But you are correct in that you can't get blood from a turnip - if there are no assets, no-one gets paid.

TJ, sorry I can't help you in your job search. Good luck. If you hadn't already quit, I would have suggested trying to get fired or laid off so you could collect unemployment. Although sometimes the owners don't want to do that, it depends on how much they care about employees. Since they are bouncing checks left and right, sounds like they aren't overly concerned.

[jgm]

I am a former employee of an outfit (not a restaurant) that went bankrupt. Our checks never bounced, but they were often late, near the end, and on one payday we were told to go straight to the bank, to get our money before other creditors did.

I finally gave up and resigned. Those employees who stuck it out to the bitter end (the firm was absorbed by another firm; I don't know whether it involved a purchase or what) retained any vacation or sick leave they had accumulated. That included the spendthrift partner who basically caused the bankruptcy. I don't remember how many vacation days he was paid for, but it was quite a few, and he was paid before other creditors were. In the end, after he and the other remaining employees, the IRS, and other priority creditors were paid, those of us who left didn't get a damn dime.

The only regret I have about leaving, is that I didn't do it sooner than I did. A sinking ship is not a pleasant place to work. Desperate people engage in backstabbing and other unsavory activities with the mistaken notion that somehow it will help them.

There is nothing to be gained by staying. I'm glad you decided to leave.

[Carolyn Tillie]

TJ, file for unemployment anyway. At least in California, while you will get denied payments initially, if you are still unemployed after six weeks, then your unemployment insurance kicks in and payments start coming in. I don't know if it is the same in other states, but just because you quit, it doesn't mean you don't qualify for unemployment -- it just means you may have to wait for it to kick in for a while.

[WiscoNole]

Get out of there.

[MissAmy]

Ugh. I feel your pain. I once worked for someone who was routinely late on checks. EVERY SINGLE PAY DAY it was this: "Um, can you wait a week or so? We're running short on money." Because back then I was a softy and didn't know any better, I said yes, but on hindsight I realize I should have said no. It really sucks to be in that situation. I hope you get a better job soon.

[TJHarris]

Thank you, everyone! I have moved on and am doing well with freelance and contract work for several caterers.

[Holly Moore]

Freelance, with the help of a good accountant, can be very rewarding both professionally and tax wise.

[Mikeb19]

From a professional and ethical standpoint,  what are your obligations to an establishment when your pay-check and those of your staff are repeatedly bouncing?  I have never walked out on a job before, but I don't see the point of giving notice if I can't get compensated for my efforts.  From a financial standpoint(gas is running $3.49/gallon), my commute is costing me.  I would be better off sitting on the davenport and watching the soaps.

←

Only once did I work in a restaurant where I got a check bounced. When I found out, I confronted the owner of the restaurant, and told him I want cash right now or I was gone. Sure enough, the safe popped open, and I had a stack of bills in my pocket.

Bottom line - if you don't get paid, you shouldn't work.