Paying Workers on Time

From Halachipedia

Mitzva

  1. Paying workers in a timely fashion is a biblical mitzvah.[1]
  2. If an employer completely refuses to pay a worker his wages, in addition to violating Lo Talin, he also violates Oshek.[2] For example, if a business closes, and the employer decides not to pay the last payroll because of the losses, he is in violation of Oshek. [3] Regarding bankruptcy of a corporation, a competent halachic authority should be consulted.[4] See Dina D'Malchusa Dina.
  3. In any case that the prohibition of delaying wages doesn't apply, the positive mitzva of paying on time also doesn't technically apply.[5]
  4. The prohibition of delaying wages only applies on the first day.[6] Some say that this applies even if one intentionally delayed.[7] Similarly, if one was exempt from paying at the time that the wages were due, for whatever reason, the prohibition of bal talin will not come into play in the future either, even if he intentionally delays.[8]In any event, one should pay immediately and any further delay is a violation of a rabbinic prohibition.[9]

Guidelines

  1. No distinction is made between wages owed to a penniless worker who depends on his employer or a wealthy worker who is financially independent.[10]
  2. No distinction is made between small and large amounts of money owed to a worker[11] or the amount of work that it takes.[12]
  3. This prohibition can apply to different types of workers: a salaried employee, a service provider, or a craftsman.[13]
  4. The prohibition can apply to payment for the use of an item.[14]
  5. Partial payments are subject to the prohibition of delaying payment, meaning payments must be made in full when due. Otherwise one would be in violation of Bal Talin[15] Even if the amount is in dispute and they plan to go to Beit Din, the employer must pay the amount that is agreed upon by both.[16]

Timing

  1. The obligation to pay an employee who works during the day, commences at the beginning of the night, and the employee must be paid by dawn. Conversely, if the employee works at night, the obligation commences at the beginning of the morning, and the employee must be paid by sunset.[17] However, if the employee who works during the day finishes before the day ends, the employee must be paid by sunset, meaning we always follow when the work was completed, irrespective of when it was begun. [18]
  2. Although the technical obligation is to pay by dark, since it is not precisely clear when it first gets dark halakhically, it is best to pay by sunset [19]
  3. When the employee earns a salary at the end of agreed upon periods, the employer must pay by that date.[20]

Form of Payment

  1. Paying by check would not subject one to any violations, unless the employer stipulates payment by cash and that is the norm in that profession.[21]

Exceptions

  1. If the task has been completed, but the item has not been given to the employer/client, the obligation to pay is not yet in effect until the item is turned over to the employer/client.[22]

Payment is not Expected

  1. If the employee does not expect or demand the payment at the specified period, the employer is exempt from paying on time.[23]

Corporations

  1. Corporations are not subject to the prohibitions of delaying payment.[24] Managers are also not subject to this prohibition unless the wage is being withheld for personal purposes.[25]


Precedence

  1. If one has enough money to pay only one of his workers, he should pay the poor worker first.[26] There is a greater responsibility to see that a poor worker gets paid because punishment comes faster if one fails to do so.[27]

Links

Sources

  1. ↑ Sefer Hachinuch Mitzva 588, Shulchan Arukh Choshen Mishpat 339:1. The Sema 339:1 explains that the Talmud (Bava Metzia 111a) derives this from the verse, “At his day you shall give him his hire, nor shall the sun go down upon it; for he is poor and sets his heart upon it; lest he cry against you to the Lord, and it should be sin to you” (Devarim 24: 15).
    While the Gemara Baba Metzia 111a mentions that there are potentially five biblical prohibitions in delaying pay (Rashi), the Sema notes that the Rambam, Tur, and Shulchan Arukh only list one, as five only apply when one does not plan to pay at all (see 339:2). There is also the verse “the wages of he who is hired shall not remain with you all night until the morning” (Vayikra 19:13). Thus this mitzvah is often known as bal talin. It is important to emphasize that the reason for the mitzvah is integral to the mitzvah itself. A guiding factor in this topic should be that people work to make a living, and withholding that living is unfair and immoral, unless, as we will see, the employer and employee operate on consensual terms. see Ahavat Chessed introduction to Perek 9 who bemoans the fact that many people, who are otherwise very ethical, are lax in their observance of this mitzva, and take liberties they would not take in any other area of halacha
  2. ↑ Sefer Hachinuch Mitzva 258, Shulchan Aruch CM 359:8, Halachos of Other People's Money pg. 40
  3. ↑ Halachos of Other People's Money pg. 40
  4. ↑ see Bankruptcy in Halacha from the Business Halacha Institute, Bankruptcy: A Halakhic Perspective by Rabbi Yitzchok Breitowitz, and Bankruptcy - A Viable Halachic Option? by Steven H. Resnicoff
  5. ↑ Halachos of Other People's Money pg. 103 in the name of Rav Elyashiv
  6. ↑ Shulchan Aruch CM 339:8.
  7. ↑ Aruch Hashulchan 339:10
  8. ↑ Halachos of Other People's Money pg. 103
  9. ↑ Shulchan Aruch CM 339:8 based on Gemara Baba Metzia 110b citing the verse “Say not to your neighbor, Go, and come back, and tomorrow I will give, when you have it by you” (Proverbs 3:28), Halachos Of Other People's Money pg. 104
  10. ↑ Halachos of Other People's Money pg. 96
  11. ↑ Ahavat Chesed introduction to Perek 9, Halachos of Other People's Money pg. 97. see there pg. 104 where he writes that some poskim rule that it applies to even less than a perutah
  12. ↑ Ahavat Chesed 9:3 based on Baba Metzia 111b, Halachos of Other People's Money pg. 104
  13. ↑ Shulchan Aruch 339:1 based on Baba Metzia 111a, Halachos of Other People's Money pg. 104
  14. ↑ Halachos of Other People's Money pg. 104
  15. ↑ Ahavat Chesed, 9:10, Halachos of Other People's Money pg. 105
  16. ↑ Halachos of Other People's Money pg. 105
  17. ↑ Shulchan Arukh 339:3
  18. ↑ Ahavat Chesed 9:2, Halachos of Other People's Money pg. 102. While Shulchan Aruch 339:3 writes that one who works during the day can be paid all night, the Rama there clarifies that this is only if his work continues into the night. This is clear from Shulchan Aruch 339:4 who states that if someone only worked a few hours during the night, he must be paid by dawn.
    The Gemara Baba Metzia 111a says he has until the end of the night, and Rashi there (D"H Sechir Shaot) explains that this means until dawn, Amud Hashachar
  19. ↑ Rabbi Ari Marburger, Business Halacha, p. 176). see Ahavat Chesed 9:1 who writes that since status of the time between sunset and tzet hakovachim is unclear, we should be strict and be sure to pay before sunset
  20. ↑ Business Halacha, p. 176.
  21. ↑ Business Halacha, p. 186-187. There is a discussion among poskim about whether or not the bank has to be open in order for the prohibition of delaying payment to not be in effect (see Rabbi Moishe Dovid Lebovits, Halachically Speaking, Volume 4, p. 373-374).
  22. ↑ Shulchan Arukh Choshen Mishpat 339:6.
  23. ↑ Shulchan Arukh Choshen Mishpat 339:9-10. For example, if the employer is up front that he/she is unable to pay immediately and the employee consents, the employer does not need to pay at the end of the period.
  24. ↑ Business Halacha, p.184.
  25. ↑ Business Halacha, p. 185, based on Mishnas R’ Aharon (Volume 2, Responsa 73:3). Rabbi Marburger notes, though, that a manager is responsible so long as he or she has the ability to pay; the manager need not use personal money if the company funds are not available.
  26. ↑ Ahavat Chesed 10:8, Halachos of Other People's Money pg. 97 based on Gemara Baba Metzia 111b
  27. ↑ Halachos of Other People's Money pg. 97
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