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Picture of Kraquin
posted
In a nutshell

Worked for company A for 10 years
They lost the contract I was under so had to follow it to company B
Found out during last year with company A that they had missed 401K payments in my and several other employees accounts. It is being investigated by the Feds
When I terminated with company A they were unable to pay out 6 weeks of PTO I had accrued. Several other employees in the same boat.
Several promises to pay came and went.
I looked up case law examples in my state regarding PTO and the law is in my favor.
I hired a lawyer. He sent company A a demand letter.
Company A responded a week later by phone and left a message.
Lawyer has tried to contact company A several times over past month, no joy.
Lawyer recommends going to court since company A has gone silent.
I learned today that company A may lose another contract in February which will essentially shut down their operations in this area.

Several questions

Why would they not settle? Surely they are knowledgeable of the same case law examples and know that they will end up paying more if it goes to court.

Does being an LLC shield them from any liability regarding pay?

What are my chances of collecting from the owners if they fold?
 
Posts: 391 | Registered: December 07, 2016Reply With QuoteReport This Post
The Unmanned Writer
Picture of LS1 GTO
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Cash flow problems = bankruptcy = current and previous employees are last to be paid.









Only in an insane world are the sane considered insane.


 
Posts: 11962 | Location: It was Lat: 33.xxxx Lon: 44.xxxx now it's CA :( | Registered: March 22, 2008Reply With QuoteReport This Post
safe & sound
Picture of a1abdj
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They can't pay you if they don't have any money. Getting any sort of judgement against them won't change that.


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Posts: 14341 | Location: St. Charles, MO, USA | Registered: September 22, 2003Reply With QuoteReport This Post
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Picture of Kraquin
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quote:
Originally posted by a1abdj:
They can't pay you if they don't have any money. Getting any sort of judgement against them won't change that.


They have money. Maybe not in that business but they have other side businesses pulling in millions.
 
Posts: 391 | Registered: December 07, 2016Reply With QuoteReport This Post
Nullus Anxietas
Picture of ensigmatic
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quote:
Originally posted by Kraquin:
They have money. Maybe not in that business but they have other side businesses pulling in millions.

IANAL, but I'm going to guess that no lawyer will be able to comment definitively w/o an understanding of Company A's corporate structure, those of the "side businesses," the structures of their interrelationships, etc.




"America is at that awkward stage. It's too late to work within the system,,,, but too early to shoot the bastards." -- Claire Wolfe
"If we let things terrify us, life will not be worth living." -- Seneca the Younger, Roman Stoic philosopher
"The dominant media is no more ``mainstream`` than leftists are liberals." -- me
 
Posts: 18635 | Location: S.E. Michigan | Registered: January 06, 2008Reply With QuoteReport This Post
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Ever heard the saying you can’t squeeze blood from a turnip? I think it about describes the situation. I’m not a lawyer so I have ZERO clue what your options are, but sounds like a long time drain for a likelihood of ending exactly where you already are
 
Posts: 1000 | Location: Arizona | Registered: January 31, 2014Reply With QuoteReport This Post
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Are you paying the attorney by the hour or on a contingency fee basis?? What has he said are your chances for recovery?
 
Posts: 8979 | Location: Stuck at home | Registered: January 02, 2015Reply With QuoteReport This Post
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Picture of Kraquin
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quote:
Originally posted by ZSMICHAEL:
Are you paying the attorney by the hour or on a contingency fee basis?? What has he said are your chances for recovery?


Lawyer had a flat fee for the demand letter and has a fee for initiating a court case, both of which he said would be recouped as additions to the settlement.

He did say that in these instances the offending business usually settles when they get a demand letter but of course that didn't happen.
 
Posts: 391 | Registered: December 07, 2016Reply With QuoteReport This Post
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^^^^
Court costs can be very expensive, and if they go into bankruptcy you will still owe the lawyer for court case preparation. It is a math problem at this point. As noted earlier even if you are successful and get a judgment you may not be paid.
 
Posts: 8979 | Location: Stuck at home | Registered: January 02, 2015Reply With QuoteReport This Post
safe & sound
Picture of a1abdj
posted Hide Post
quote:
Maybe not in that business but they have other side businesses pulling in millions


A business is an entity, not much different than a person. If you get a judgement against company A, (in most cases) you can't collect from company B.

A similar analogy would be suing the guy that dented your car in the parking lot, but because he's broke trying to collect from his sister.

I'd imagine the lawyer saying most companies settle is probably true. Likely because those companies remain in business and have assets. It would cost them money to not settle. But if you're dealing with a broke company, they aren't motivated in the same fashion.


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Posts: 14341 | Location: St. Charles, MO, USA | Registered: September 22, 2003Reply With QuoteReport This Post
Striker in waiting
Picture of BurtonRW
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There’s a reason your attorney didn’t take the case on contingency. I wouldn’t have either based on what it sounds like you’re facing (a judgment-proof defendant).

Good luck, but be careful throwing good money after bad.

-Rob




I predict that there will be many suggestions and statements about the law made here, and some of them will be spectacularly wrong. - jhe888

A=A
 
Posts: 15432 | Location: Maryland, AA Co. | Registered: March 16, 2006Reply With QuoteReport This Post
The Unmanned Writer
Picture of LS1 GTO
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OP, best to just walk away at this point and give them a bad LinkedIn and Yelp review. Big Grin

Of course, keep ALL your documentation and ears open. If they're still in business in four months, try a follow up demand letter (use your lawyer's as a guideline?) then consider suing if they continue operations. (Be careful to ensure they didn't fold and make a simple change to their name)









Only in an insane world are the sane considered insane.


 
Posts: 11962 | Location: It was Lat: 33.xxxx Lon: 44.xxxx now it's CA :( | Registered: March 22, 2008Reply With QuoteReport This Post
Member
Picture of SR
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quote:
Originally posted by Kraquin:

Found out during last year with company A that they had missed 401K payments in my and several other employees accounts. It is being investigated by the Feds


Is this limited to payments in the past year? You should be getting statements from the 401(k) administrator (might not be the correct name) that shows activity. Make sure to check those statements and confirm correct amounts paid over during your employment period.

Good advice from BurtonRW and others about the legal fees.

Sorry this has happened to you!




Speak softly and carry a big stick loaded Sig
 
Posts: 4493 | Location: Raleigh, North Carolina | Registered: September 27, 2004Reply With QuoteReport This Post
Member
Picture of Kraquin
posted Hide Post
quote:
Originally posted by SR:
quote:
Originally posted by Kraquin:

Found out during last year with company A that they had missed 401K payments in my and several other employees accounts. It is being investigated by the Feds


Is this limited to payments in the past year? You should be getting statements from the 401(k) administrator (might not be the correct name) that shows activity. Make sure to check those statements and confirm correct amounts paid over during your employment period.

Good advice from BurtonRW and others about the legal fees.

Sorry this has happened to you!


No, we were never sent statements so it was quite a surprise when I found out. My guess is after losing a contract they started moving money around to keep the lights on. They never recovered so the employees had to eat it.

I have considered the legal fees but I'm owed close to 15k. On top of that the award can be quadrupled and anything in between. What with the legal fees being tacked on to the award and the law in my favor I'm more inclined to pursue it. I learned today that if the company folds I can still go after the former owners. An LLC doesn't protect everything.
 
Posts: 391 | Registered: December 07, 2016Reply With QuoteReport This Post
A Grateful American
Picture of sigmonkey
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My advice.
(typed, while wearing the t-shirt)

Gather everything you can researching the closest you will get to "your best solution vs what it will "cost" (time, money, grief, mental and emotional impact) you can before you choose to pursue.

The "toll" the Troll charges to cross that bridge, may well be better spent on matches.




"the meaning of life, is to give life meaning" I could explain it to you, but I can't understand it for you.
 
Posts: 40678 | Location: fl | Registered: December 20, 2008Reply With QuoteReport This Post
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Legal fees mount up quickly. 15K is easily spent on contested divorce cases. The monkey has some good advice.
 
Posts: 8979 | Location: Stuck at home | Registered: January 02, 2015Reply With QuoteReport This Post
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