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?

Cash flow problems = bankruptcy = current and previous employees are last to be paid.

They can't pay you if they don't have any money. Getting any sort of judgement against them won't change that.

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.

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.

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

Are you paying the attorney by the hour or on a contingency fee basis?? What has he said are your chances for recovery?

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.

^^^^
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.

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.

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

OP, best to just walk away at this point and give them a bad LinkedIn and Yelp review.

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)

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!

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.

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.

Legal fees mount up quickly. 15K is easily spent on contested divorce cases. The monkey has some good advice.