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  1. #1
    Join Date
    Oct 2009
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    Default Furlough Hanky-Panky by Employer

    My question involves unemployment benefits for the state of: MA

    My former company had employees take time off whenever they wanted to not work; a day here, a day there. They did this over the course of several months, and continued to pay the employees. Then at a later date had a several week period where they did not pay employees; though folks still worked. Employees then filed for unemployment and most received it, though the unemployment office did deny it in a couple cases. The unemployment office has since audited the firm. I have not heard yet on the ruling from anyone. Does the above sound legit? or should the employees or employer have to pay back the money?

  2. #2
    Join Date
    Jan 2006
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    38,867

    Default Re: Furlough Hanky-Panky by Employer

    well, one of the first rules of claiming unemployment is to be unemployed so, since they were working, they were not unemployed.

    a law that would disallow this is all time worked is required to be paid so, if they were working, the company must pay them.

    so, quite simply put: what was done was illegal and amounts to UI fraud. Since the company is legally required to pay the folks for working, they should catch hell for that and since the employees are supposed to be paid for time worked, they would not be eligible for UI and as such, should be required to pay back thee UI, at a minimum.

  3. #3
    Join Date
    Dec 2007
    Posts
    2,357

    Default Re: Furlough Hanky-Panky by Employer

    There also may have been wage and hour violations; there isn't enough information in your post to say.

  4. #4
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    Jan 2006
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    Default Re: Furlough Hanky-Panky by Employer

    Quote Quoting PattyPA
    View Post
    There also may have been wage and hour violations; there isn't enough information in your post to say.
    Patty, they were working without getting paid by the company.

    Then at a later date had a several week period where they did not pay employees; though folks still worked.
    you don't see that as a wage and hour violation?

  5. #5
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Furlough Hanky-Panky by Employer

    Probably under Federal law. Under MA law, possibly not.

    MA law might - I do not say will - consider the fact that they had previously been paid for days they did not work as "advance pay". MA is my state, and I had reason to discuss a similar (by no means identical, but close enough to get an idea of how the thinking would be) situation with the MA AG's office, which passes as the DOL in this state. In some situtions, the state would say, well, in January you got paid for a day you didn't work - that's advance pay for the day in Februrary that you worked but didn't get paid.

    Whether that would happen in this situation or not, I don't know. But I have seen that kind of judgement made here.

  6. #6
    Join Date
    Jan 2006
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    38,867

    Default Re: Furlough Hanky-Panky by Employer

    so, even if that act alone was legal, they did earn pay for the time they were working, yes? and is that not what is asked when applying for UI?

    I cannot attest to what is stated in their questionnaire but in Indiana it is specifically asked: did you work any during the week you are applying for UI?

    It is not when you are paid but when you earned the money. Is it any different in MA?

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