Legal Question in Bankruptcy in California

Owed wages from company bankruptcy

A couple of weeks ago the company that I work for laid off all of its employees and will be filing for bankruptcy. According to our CFO, we have accounts receivable still outstanding, however, when that money comes in, the company intends to pay off its debts with the money rather than pay its employees.

The company was unable to meet our last payroll and everyone that was laid off is owed 3 weeks of pay plus unused vacation time. It does not appear that the company intends to pay us.

What are my options here? Is there any type of government agency that I can complain to that might actually be helpful? Do I have to sue the company? If so, who exactly would I sue? Our CEO has told us that he is getting screwed himself by our board of directors and that he has no control over where the last of the money is going. Would I have to sue the board of directors of our company? Is anyone personally responsible for any debts of the company? Or can the company just file bankruptcy and all the directors just wash their hands of any debts?

Thanks in advance.


Asked on 11/20/06, 12:03 pm

1 Answer from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: Owed wages from company bankruptcy

The California Department of Industrial Relations has a section called the Division of Labor Standards Enforcement. Commonly referred to as the Labor Board, this is the government agency that normally handles wage claims for employees.

If you want to move faster, unpaid wage claims can be handled in a small claims lawsuit. If you are really concerned about how quickly they are liquidating the assets, you can file and action in Superior Court and get a Prejudgment Writ of Attachment to freeze assets before they are completely gone. This usually requires an attorney and may cost quite a bit of money.

My office is near you, so feel free to contact me if you need further assistance.

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Answered on 11/20/06, 12:12 pm


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