Employee works for employer for one month. Employer fails to pay employee and therefore owes employee $2500.00. Not only does the employee find out he will not be paid but he also finds out that the employer has listed him as being employed for the entire year prior but hasn’t issued W-2 forms to his employees in five years. So does this employee have a claim?
First of all the employee should report the employer to the IRS right away. But as far as a claim, the claim for unpaid wages is available but does the employee really want to bring such a claim after finding out that the employer owes $1 million in back taxes to the IRS? Any chance of this employee ever getting any money is zero to none, so technically he may have a claim, but what’s the point of going forward, he’ll just be told to get in line…. BEHIND THE IRS!
MORAL: NOT EVERY CLAIM IS WORTH PURSUING. Two questions that should always be asked: 1) do i have a claim, and 2) should I pursue it? Every good lawyer should make you consider both questions before spending time, effort, energy and money!