Employee's Lien: A Comprehensive Guide to Your Legal Protections

Definition & Meaning

An employee's lien is a legal claim that allows an employee to secure payment for owed wages or benefits from their employer. This lien can be placed on the employer's earnings and property used in their business operations when the employer fails to make agreed payments to employee benefit funds, such as medical or pension funds. The lien arises from agreements made between the employer and employee, particularly under collective bargaining agreements.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: An employee discovers that their employer has not made required contributions to their health insurance fund. The employee files a claim for an employee's lien on the employer's property to recover the unpaid amounts.

Example 2: A group of employees under a collective bargaining agreement finds that their pension contributions have not been paid. They may collectively file a notice of claim for an employee's lien to secure their rights to the owed funds. (hypothetical example)

State-by-state differences

State Employee's Lien Details
California Employees can file liens against employers for unpaid wages under specific labor laws.
New York New York law allows employees to secure liens for unpaid benefits under collective bargaining agreements.
Texas Texas has specific provisions for employee liens, particularly concerning unpaid wages.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Difference
Mechanic's lien A claim against a property for unpaid work or materials provided. Applies to property improvements, not employee benefits.
Wage garnishment A legal process where a portion of an employee's earnings is withheld for debt repayment. Involves court orders, while employee liens arise from agreements.

What to do if this term applies to you

If you believe you have a claim for an employee's lien, follow these steps:

  • Review your employment agreement and any collective bargaining agreements for payment terms.
  • Document any unpaid amounts and related communications with your employer.
  • File a notice of claim within the required timeframe, ensuring all necessary details are included.
  • Consider using US Legal Forms to access templates that can help you prepare your claim.
  • If the situation is complex, consult a legal professional for assistance.

Quick facts

  • Typical fees: Varies by state and legal representation.
  • Jurisdiction: Labor and employment law.
  • Possible penalties: Employer may face legal action for unpaid amounts.

Key takeaways

Frequently asked questions

An employee's lien is a legal claim that allows employees to secure payment for owed wages or benefits from their employer.