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Resignation because of lack of pay/breach of contract, etc.

by Gregory
(Arkansas)

I work in Arkansas. I am a top manager in our little company. Several times in the past the company has had trouble meeting payroll. However, that doesn't stop them from writing checks. The checks just bounce. I have had 18 checks bounce since November of last year. I resigned 6 weeks ago, but because of the irreplaceable nature of my position I agreed to stay on until a replacement is found. Good luck with that as no one will want this job!! In any event, I will probably get stuck with around 10k of back pay and reimbursements. My working conditions have also become intolerable as my job requires the purchase of materials and the company is spending like $0. That hasn't stopped my colleagues from back stabbing and blaming me for not doing my job with both hands tied behind my back!!


Another issue is that I plan on moving back to my birthplace in Tennessee. I believe Tennessee has much better unemployment benefits than Arkansas (max of around $400/week) while Tennessee pays half your salary. In my case thats worth at least 2.5 times the Arkansas rate!! My industry is in recreation, so obviously that is the first thing people cut out when times get tough.

Well that's basically it. I am basically working for free now as my last check bounced and I was told that the checks I received last week are probably no good as well. I am
having to consider letting my house, my car, and worst of all my health insurance (I have a wife and 2 children) go. I need to get out of here, move back to my home and start a job search there. I'm no free-loader, I want to work, but I'm not going to be sweeping floors or flipping burgers either. I need help in the interim, as I've been royally screwed..don't you think??


Hi Gregory,

Yes, I do think you have been screwed. And working for free and having payroll checks bounce will be good cause for quitting as well as paying for material or whatever. Good luck collecting the backpay and reimbursment I'd want to know if I could collect attorney fees as well as part of the judgment.

But the unemployment .. you'll collect will be from Arkansas. They are the liable state. Even if you move to Tennessee and file it will be decided under Arkansas law. They will transfer the wage credits, so I seriously doubt that you will be collecting TN's max benefits .. as of January of this year (2009) a loophole was closed that stops an individual from filing and receiving a higher paying state's benefit amounts.

This is because people from low paying states were filing in Massachusetts or any other state with higher benefits, but the unemployment tax was paid on the liable states wage base. I still don't know who was actually paying "the difference".

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