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Company Bankrupt, Who Pays You?

Company Bankrupt, Who Pays You?

Woman counting money from blue wallet

So your company went under or got sold. Who is responsible to pay the wages you were owed, and how do you collect your money?

This might be surprising, but this issue rarely comes to court, perhaps because employees don’t know where to start. But there are new laws in California that can help displaced employees collect in situations similar to this one decided by the CA supreme court in 2010:

Miguel MARTINEZ et al., Plaintiffs and Appellants, v. Corky N. COMBS et al.,
No. S121552.
Decided: May 20, 2010

The case of wage dispute involves a convoluted network of agricultural companies in CA and their employees. When one of the companies in question went bankrupt the courts found that the remaining management WAS responsible to pay back wages to the employees named in the suit, because they determined that they were part of the original conglomerate of employers named in contracts.

The intricate details and laws involved in a case like this can deter many employees from taking action. Do not give up and walk away from money you worked for. It’s your money and we help employees collect every day.

Bankruptcy does not exempt your company from paying what they owe you. This year alone, new laws were passed to allow for liens against the owner’s real, physical property and make them personally responsible.

You must take action. There are time limits on legal matters such as this that limit the number of years you can wait to make your claim. The sooner the better!

United Employees Law Group is well versed in all areas of employment law and we are here to help you with a NO COST consultation. If we are able to help you, we take all cases on a contingency plan so you will not have to pay out of your pocket. We only get paid when we collect for you.

Call our San Diego Labor Law Attorneys TODAY 888-455-7434.


Photo Credit: Shutterstock/Africa Studio

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