[itsthecourier]

I don't think there is something like good faith and failing to pay payroll. As an entrepreneur I have failed before and never have I considered payroll money as something I can use for other purposes.

Go for it, sue and put in jail whoever owes you payroll money. Jail is a very good motivator to pay what's owed.

Do not take this loss. You should if you are a founder and decided not to take salary, but as an employee this is unacceptable. That money is yours.

[H8crilA]

I doubt you can go to jail for failing to pay money to another person or entity, except in very specific cases.

[mastazi]

OP could be in a country that has robust labour protection laws where that could be the case. If OP is in the US then you're probably right.

[flangola7]

In many jurisdictions failure to pay wages is criminal theft. If someone takes money out of my wallet without my consent, that's theft. The fact that it was stolen before it even made it into my wallet doesn't make it not stealing.