Former employer withheld part of my pay as a running "balance" for several years and now won't pay it out. They put the amount in writing themselves.
Throwaway account.
Facts as neutrally as I can put them:
•. Worked through a consulting/staffing company in California for several years, ending earlier this year. On H-1B throughout.
• Pay structure: W-2 payroll ran at the required wage, and the rest of my agreed share of the client bill rate accrued as a running "balance" to be settled later.
• Earlier this year, someone on their finance side sent me their own reconciliation spreadsheet. It puts the balance owed to me in the low five figures.
• They have acknowledged owing it in writing several times. A large share of the deductions on their own sheet are "legal fees" with no invoices ever provided. If those came off, the amount owed roughly doubles.
• Their sheet also shows a significant block of hours worked with regular pay recorded as zero.
Questions:
1. Is a DLSE wage claim the right route here, or does the contract element argue for a civil suit instead?
2. Are charges and unexplained legal fees lawful deductions from wages in California or even on a federal level?
3. The company appears to have no cash. Does that change the strategy, or create any urgency about filing?
If attorney recommendations are allowed here, I am in California and looking.