Can an employee acuse me of nonpayment, when I paid them cash?

Question

I had someone working for me for 4 years been paid cash. After He quit the job, He went to Labor dept and accused me of not paying him for 5 months. Worse yet, because of his unhappiness at the time, He convinced 3 more older employee to make similar accusations. Now years later I am receiving letters from NYCLabor Dept about these people who I trusted, helped and paid in cash, as they desired. Now how can I prove I paid them and how can they prove I own them? Business is already close for years, I have told the Labor Dept I don't own them money 4 years ago.

D.markle · Accepted Answer

It would be best to contact an attorney who specializes in Labor disputes.  Its going to be hard..on both sides...to prove the case.  Good luck!

Lynn Bodoni · Answer

Quite frankly, unless you got a receipt for all those cash payments, you're pretty much out of luck.  This is why companies issue pay stubs, and have people sign for cash.

Now, if you paid the employees' Social Security, and withheld income tax and paid it in properly, and kept the records of this, that would be proof.

falsi fiable · Answer

Next time don't pay in cash as that is a sign of fraud. Since you have no proof of paying them, the Department of Labor will come down very hard on you. Did you withhold income taxes, Social Security, and Medicare? Did you pay your unemployment insurance premium to the state? Did you pay for workers compensation insurance? You have no proof!

Can an employee acuse me of nonpayment, when I paid them cash?

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