Baal Talin - Paying Employees On Time

The obligation to pay one's employees in a timely manner is a mitzva of utmost importance. In fact, one who fails to do so transgresses multiple prohibitions of the Torah.[1] Failure to pay one's employees on time is a transgression referred to as "baal talin", the prohibition of withholding salary. The mitzva of paying one's workers on time includes not only their actual salary, but also any reimbursable costs that the employee incurs during the course of his work, such as food or lodging.[2] Also subject to the rules of baal talin is the requirement to pay one's rent on time.  One must not allow a situation to develop in which one's landlord is forced to come begging for his rent money or take other measures in order to get it.[3]

Ensuring timely payment is especially urgent with regards to employees who are poor and dependant on the delayed salary in order to provide for their basic needs. In such a situation, one not only violates baal talin, but one is in violation of offences relating to charity and caring for the poor, as well.  We are taught that a person's salary is mystically connected with his soul[4] and that the loss of one can conceivably lead to the loss of the other.[5] A partial payment of salary is also unacceptable, and one violates the prohibition of baal talin on account of the remaining unpaid portion.[6]

An employer and employee are permitted to come to any arrangement they see fit regarding the timing and frequency of salary payments. So too, the two parties may even agree to allow late payments under extenuating circumstances.[7] Indeed, one can even create an agreement in which the prohibition of baal talin may never actually apply. The rules of baal talin apply to customers, as well. For example, when picking up clothes from the dry-cleaners and the like, one is obligated to pay for the service immediately unless otherwise agreed upon. One who fails to do so violates the prohibition of baal talin.

An employer must always bear in mind that failing to pay an employee on time affects not only the individual but his entire family, as well.[8] Paying late, straying from the prearranged salary agreement, or otherwise withholding the salary for even one day are all violations of baal talin. So severe is such behavior that the Prophets have issued specific warnings against it.[9] Our sages teach us that those who disregard the laws of baal talin will be punished by having their property taken away.[10] Nevertheless, an employer does not transgress the prohibition of baal talin if the employee fails to request his salary or if he otherwise insinuates that a timely payment is not pressing.[11]

One violates the prohibition of baal talin for withholding even negligible amounts of money. In ancient times, one who employed day laborers was required to pay salaries the same day and no later than the night which immediately followed. If the wages had not been paid by daybreak, the employer was in violation of baal talin. Similarly, one who employed night-shift laborers was required to pay salaries sometime throughout the following day, and certainly before sunset.[12] Similarly, one who hires someone for a short-term project of less than a day's work should pay the worker the same day. When signing an employment contract one is well advised to ensure that the actual owner of the company signs on the dotted line and not merely an appointee of his. This is because according to halacha, only the owner of a company is fully accountable for commitments made to the employees, not the owner's agents.[13]

Whenever one is required to pay for goods or services, payment must be made by cash, direct deposit into a bank account[14] or a check which is immediately redeemable for cash, unless otherwise agreed.[15] An employer who pays his workers by check has discharged his obligation to pay on time even if the employee does not cash the check for several days, or even if he is paid on a day when the banks are closed.[16] It is considered ideal, however, for an employer to ensure in advance that his employees agree to be paid by check despite the delays that often arise in redeeming them.[17] In a worst case scenario, it may be permissible to pay one's employees with property whose monetary value equals the amount of money owed.

An employer who genuinely does not have the money to pay his workers does not violate the prohibition of baal talin, though he is advised to make heroic efforts to do so even if it means borrowing money.[18] Unless there is reason to suspect otherwise, an employee who is not paid on time should judge his employer favorably and assume that the delay was due to an honest error or a legitimate inability to pay.[19] It is absolutely reprehensible to intentionally lie or mislead one's employees.[20]

If an employee knows that his employer only receives the monies needed to pay him on a certain day or that it is dependant on a certain business development, the employer does not violate the prohibition of baal talin until after that time.[21] If an employer has some cash flow but not enough to pay all his employees their full salary, he should distribute the money to everyone as evenly as possible.[22] An employer must make sure that he has enough money to pay his employees before he hires them.[23] It goes without saying that taking advantage of minors is severely forbidden.[24]

[1] Vayikra 19:13, Devarim 24:15, Bava Metzia 77a

[2] C.M. 339:1

[3] C.M. 339:1, Ahavat Chesed 9:5

[4] C.M. 339:2

[5] Ahavat Chesed, Peticha - Tashlumei Schar Sachir

[6] Ahavat Chesed 9:11

[7] Netiv Hachesed 10:24

[8] Ahavat Chesed, Peticha - Tashlumei Schar Sachir

[9] Malachi 3:5

[10] Sukka 29b

[11] C.M. 339:10

[12] Bava Metzia 110b, C.M. 339:3

[13] Bava Metzia 110b,111a, C.M. 339:7

[14] Birur Halacha Vol. 6 p. 651

[15] Shach C.M. 336:4

[16] Pitchei Choshen;Sechirut 9 note 36, Teshuvot V'hanhagot 3:470

[17] Peulat Sachir Chapter 3

[18] C.M. 339:10, Netiv Hachesed 9:7

[19] Shabbat 127b

[20] Mishlei 3:28

[21] C.M. 339:9

[22] C.M. 104:11, cited in Ahavat Chesed 9:8

[23] Netiv Hachesed 9:26

[24] Netiv Hachesed 9:16