Hypothetically speaking....

[Monster Dave]

What would you do if you were an employee for a business/organization and your salary was paid by the state and one day you found out that the state budget was in such bad shape that they put you on notice that there was a good chance that your salary would be paid to you in the form of an I.O.U.?

I know that California had to deal with this, and now Arizona is on red alert for the same budget problems.

So, what would you do in a situation like that? Moreover, what would you tell the bill collectors?

[Statler]

wait....salary by business or salary by state...little different.   business has state contract and state isn't paying business?   or business is telling you that you get IOU from business because state not paying...etc.etc.   Is the paycheck directly from the state, or is it from the business...that's a big difference.

My firm works through state contracts, but I pay my employees.

I have had to threaten to sue the state several times, and they always come through last minute (and leave other firms hanging as they don't know the magic words)....but my employees are detached from that level and would have no recourse against the state...only me.

I'd find a good employment law attorney...quickly.

and a different job.

[Monster Dave]

wait....salary by business or salary by state...little different.   business has state contract and state isn't paying business?   or business is telling you that you get IOU from business because state not paying...etc.etc.   Is the paycheck directly from the state, or is it from the business...that's a big difference.

My firm works through state contracts, but I pay my employees.

I have had to threaten to sue the state several times, and they always come through last minute (and leave other firms hanging as they don't know the magic words)....but my employees are detached from that level and would have no recourse against the state...only me.

I'd find a good employment law attorney...quickly.

and a different job.

Thanks for pointing that out! Being more specific, the press for Arizona is talking about all state employees. So if you're a garbage man or a university employee it doesn't matter - that's the target zone that I was asking about.

[Popeye the Sailor]

Moreover, what would you tell the bill collectors?

Here's your money, because I know how to save for a rainy day.