The "Safety Czar" is in fact nothing more than a manifestation of Jeremiah's schizoid delusions. This is a truth completely unknown to anyone else at the factory, including Elliot and Dr. Breign who have for several years followed the Czar's orders and handed Jeremiah his paychecks. Being insane rather than fraudulent, Jeremiah has never cashed one, instead saving them all meticulously thinking that the Czar would one day come for them.