Employer have not paid final settlement

[ArtiSim]

Hi,

 

I am currently working in a company in the US on a H1B visa. This is my 3^rd week here since I joined. Before this I was working for an American consulting company XYZ at their client location in California. However XYZ is not based in California. I have never been in XYZ’s office and when I was recruited by them, I was directly asked to join at their client location in California. The wages I was paid and taxes deducted etc . were all as per California norms.

When I resigned from XYZ, I gave them a 5 day notice. I informed them about my resignation on Nov 17^th (Monday) and mentioned Nov 21^st (Friday) would be my last working day there. My manager approved my exit and forwarded my resignation email to the HR copying me, asking them about the next steps. However there was no response from the HR. 5 days passed and still no response from the HR. I had to join my new company on the following Monday (Nov 24). On Friday, my last day I surrendered my laptop and ID card (issued by client) and left office. I joined my new company as planned on Monday.

On Nov 28, Friday, XYZ paid me salary (direct deposit) for my last 2 weeks (pay period 11/08 - 11/21). A week after that, I called the Payroll team of XYZ to check on the final amount they owe me (I had over 154 hours of unused vacation). They said the system still shows that I am an active employee of XYZ and my resignation was not recorded. They told me that my manager has to properly submit the termination request in the system and only then my resignation will be reflected in system and till then I would be treated as an active employee of XYZ and will continue to receive wages biweekly. When I asked about my accrued vacation, the person told I would receive it only after the resignation is recorded and I need to contact my manager to get that done. I immediately sent a mail to my manager asking them to raise a termination request for me. My manager replied that they are following up with the HR and it would be taken care of .It’s been a week now I still haven’t received my final settlement .Last Friday , 12/12 , I received another salary from XYZ for period 11/22- 12/05 ( I was not even working with XYZ during this period). The payroll team person said I will have to return these wages to XYZ once I receive the final sum (or it might be deducted from the final sum and I will receive the remainder).

There has been no update from the HR or my manager since then and I am checking my bank account every day to check if they have deposited the final sum to my account. Nothing so far! I have below questions in my mind now :

1)      How much time the employer can legally take to pay my final settlement? I read somewhere that California employers have only 72 hours from the last day of the employee to pay the final wages (and not even 72 hours when the employee gives more than 72 hour notice – I gave 5 day notice). My work location was California though my actual employer was based in another state. Given my work location was California, does this rule apply to my case?

2)      Am I obligated to return the salary which I received (direct deposit) for the period I was not working, like the payroll person said? It was not my mistake that they didn’t update their system about my resignation. I also read in the internet that when a California employer does not pay the final wages on time, they owe me a waiting penalty and they have to pay the regular wages for every calendar day till they pay my final sum. Does this apply to my case?

3)      Last Friday 12/12 , I received salaries from my current employer as well as XYZ .Being on a H1B visa can I receive salaries from 2 different companies for the same pay period .Will this cause any problem for me?What will happen to my W2 when i get 2 salaries for same period?

4)If I am asked to return the salary they paid, what happens to the taxes that got deducted at source? Am I required to pay just the on-hand salary that got deposited or the whole sum (which I never got)

5) What steps should I take now to receive my final amount? 

 

Would appreciate expert advice. Looking forward to your response. 

[JoeF]

As far as I know, in CA the final salary has to be paid at the time of layoff.

With your employer not being in CA, that may not apply, though.

You may want to discuss your rather complex situation with a good labor lawyer. You may also want to contact the CA Labor Department, and see what they say.

[ArtiSim]

Thanks for the reply. But it was not a lay off and I voluntarily resigned and gave them a 5 day notice.