I am an H1B visa holder. My employer is paying me on an hourly rate. My employer is not a direct contractor to the end client, going through yet another third party. My employer has been paying my wages on a delayed basis - the delay varying between 40 to 45 days from the last day of the working month, so that my October 2009 wages were paid out only in mid-December. The reason is - he claims - that he can only pay me after receiving payment from his contract partner. Then there is a further delay to deliver the payslip.

First of all, is this acceptable practice? If not, could you please clarify what can be done in this instance? In fact I am on the verge of ending it all over here and going back home - but before that I want to ensure that I get settled promptly without delay before I head for home and I would at least like to be able to make a credible threat to my employer that I can complain to an approriate authority if my salaries are not paid promptly in full.

Also my employer has let the group insurance lapse as of Dec 5th 2009. He claims that the insurance has been renewed under an amended benefits package and because of underwriter review, the procss is getting delayed. However it is now already one and a half months and I still have not received my new insurance card. The medical insurer says there is no record of renewal and my insurance has lapsed. My employer has countered this by saying that because the matter is with the underwriters, it wouldn't show up in the system. Besides, they claim I should be getting a new group number and membership number with better benefits. However none of these has materialised after one and a half months. Again is there any avenue for complaint or redress? I can't simply be waiting endlessly.

Is this acceptable practice? The answer is NO... everything is wrong here. If I were you, I will report this matter to Department of Labor in your state.

Sounds like the company is having money issues and trying to cheat the employees. They are to pay you on the next pay period, they need to be reported to :
US Dept of Labor, and perhaps even the company they have a contract with.

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Originally Posted by lawanwadee

Is this acceptable practice? The answer is NO.... everything is wrong here. If I were you, I will report this matter to Department of Labor in your state.

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Thank you.

So you seem to be saying that in spite of me being hourly-rated instead of on permanent salary, I shoud still expect to receive my wages on time.

I neglected to mention, though, that my employer is justifying delays in payment of wages because he put in a clause to the effect in the offer letter to me. The clause reads that wages will be paid "on due date or upon payment from client". The word "client" in their parlance refers to their third party vendor - not the end client. My copy of the letter is not signed by me, but they claim to have a copy signed by me.

These terms were sneaked into the offer letter, there being no prior discussion of these terms between us. I was also unsuspecting of these terms as I had done a prior contract wth this same company, also under hourly billing, where there were minor delays (at most 2-3 weeks), but not to the extent of what I am now experiencing (about 35-45 days). It therefore came as a shock to me that a company I had trusted implicitly actually duped me into an arrangement of this nature.


My question is: Are such clauses in an employment offer letter legal? Will it change my status from an employee to that of a sub-contractor subject to billng cycle delays? Assuming I did sign such a letter, will it weaken my case? Will it affect my ability to seek redress ?

There has to be set payroll periods, it sounds like they don't have money to make payroll and now pay benefits, soon expect the paychecks to bounce or they close and not pay you at all.

Normally you are paid one or two weeks after close of a pay period.

Should never be any dely in being paid. Most people would not be there two days after pay was due, if there was not a check, on day three most would be at the dept of labor filing a complaint,

They are cheating you since you are not aware of the laws and they think they can get away with it.

It may effect it, but it is obvious what is happening, it needs to be addressed, before you end up not being paid at all for several months worth of work

Your employer, the one who sponsored your visa is a phony business that passed you onto other business, this is violation of immigration laws/work visa.

You can retain an attorney and sue them... you have a strong case.