What to do if I my job included a car allowance but the accounting department didn’t get the memo so didn’t add the money into my paychecks?

UPDATED: Sep 10, 2012

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What to do if I my job included a car allowance but the accounting department didn’t get the memo so didn’t add the money into my paychecks?

I was supposed to get $600 per month. I didn’t notice the shortfall for 19 months (bad on me but it’s hard to miss something you aren’t used to). When I discovered it and brought it their attention they claimed they didn’t have the cash on hand and told me they would pay me $600 a month. It’s now down to $7,500, but I’m leaving the company and they are saying that they don’t have to pay the balance.

Asked on September 10, 2012 under Employment Labor Law, California


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If your employer made an error with respect to your car allowance payment and owes you on it, you are entitled to payment on it immediately under the laws of all states in this country. The problem is that there is no money to pay you the full amount presently.

I suggest that you consult with an employment attorney about getting paid and options. One option is a promissory note signed by your employer issued to you for the amount due with interest payable monthly until paid in full where the note is adequately secured.

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