Am I entitled to my deferred pay, even if I leave the company?
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Am I entitled to my deferred pay, even if I leave the company?
I have been working full time (40hrs a week – and hard!) for a Canadian company, for 2 months. This was on an initial verbal agreement of a deferred pay of 4-6 weeks maximum. I have not yet received any money from my employer, and when questioned they cannot give me a date as to when I can expect pay. If I chose to leave the company, will I still be entitled to my deferred pay?
Asked on July 26, 2012 under Employment Labor Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
It depends on the terms of the agreement (whether written or, this case, oral or verbal) pursuant to which you receive the deferred pay--it would be perfectly legal, for example, for that agreement to include the provision that if you voluntarily leave employment, you will not receive deferred pay. In the absence of any specific agreement on the subject, most often, a court would conclude that you are entitled to deferred pay earned to date if you leave--but be aware that if the agreement were oral and the company (e.g. your manager(s); HR; etc.) testifies that the agreement was that you would forfeit the pay if you leave, it may be difficult to overcome that if you only have your own testimony.
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