Legal Question in Business Law in New York
Job Problems
I am an employee at a pet store that just opened last June. The business is a partnership via verbal contract. One of the partners lives in North Carolina and he was financing the store, and the lease is in his name. The other partner took the role as more of a manager type owner, but also financed what he could. The partner out of NC decided since he wasn't making the profit he expected, that he wanted to back out. He refuses to send money to the store. The store has no heat, and the temperatures are well below freezing in this area. We have not gotten paid in over a week, because the store has no money to pay us. The bills haven't been paid because we aren't making enough to pay the bills, and the owner refuses to help. He plans to file bancruptcy just so he doesn't have to worry about paying for the store anymore. Is there anything that we as employees can do? We feel we are being wronged by this owner, by not being well informed about the status of our jobs, not being paid, and having to work in an environment that is freezing cold.
2 Answers from Attorneys
Re: Job Problems
Carlos is correct. Both of the partners are fully personally liable to the employees.
Additionally, even if bankruptcy is filed the employees are first in line to get paid (with few exceptions.)
You should decide whether to stop working. If the store is dangereous to work in take that into consideration.
In any case immediately contact the Department of Labor and contact a lawyer to figure out how the employees would like to proceed, idividually or as a group.
Re: Job Problems
There are several benefits to this type of business strcuture, from your standpoint. In a partnership the business owners personal assets may be used to pay of company debts. You may sue the company as a group and get your backwages if you so decide.
Please feel free to contact my office for further assistance. You can visit our website at www.cgonzalezlawfirm.com or email us at the email address provided below or call us directly at 2127098303
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