I used to work at a Chinese restaurant. My boss was leaving for a trip to Hong Kong two weeks before May checks would come. My roommate who was also a co-worker (He was not a manager) at the time brought my check home with 500 dollars cash. He said it was the check for May and they were early. I asked was the $500 a loan he said no it just covers what she will owe us for the rest of the month. The next day at work I was going to ask about it but she had already left. She came back in time for June checks to go out. It was July 7th when I received my check and she then asked for the $500 back saying it was a loan. Noted: she had already deducted some money from my check before she gave it to me.
You can choose not to give the money. At that point, the employer can fire you and/or sue you.
If she takes you to court, you can argue it was payment for May, she will argue it was a loan, and the judge will decide. The key witness in the matter for both sides will be the manager.
I would initially say no. I would like to see any paperwork. Denying the loan may have some tax consequences as it would then possiby be interpreted as payment. call me at 404-428-1954
It sounds to me like the boss was trying to be sure to cover wages due while she was overseas- hence the $500 "advance". When she returned, your description sounds like the check she then wrote you did not take into account the $500 "advance", and so you would be overpaid if you kept both the check and the cash. It doesn't sound like the boss intended the $500 to be a loan - but more of an advance - in fact, your co-worker passed along the message from your boss that it "covers what she will owe us for the rest of the month". Your employer owed you wages for all hours worked. Paying you a cash advance isn't the best way (from tax aspects to record-keeping) to tide an employee over in the event of a disruption in pay periods. But if she intended the $500 to be for "wages", then I would think that she would be entitled to offset that amount in a "catch-up" check - so long as it all adds up to the wages you were due. It sounds like you don't work there anymore. From a practical aspect, she would have to try to collect whatever amount she didn't recover by deduction from your July 7 check. Since this was an undocumented cash transaction, I would think that this would be hard for your ex-boss to prove and recover.
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