Legal Question in Employment Law in Utah

Investors will not fund payroll for work performed by employees

I was laid off last Tuesday because the investors for the company I worked for refused to fund the employees payroll. The work was performed in the last half of August of 2002. I know they have the funds, they just refuse to make good on thier word.

I have filed a complaint with the Labor Commission of Utah but I fear that this course of action won't yeild much.

My question is: Do the investor hold ny legal obligation to make payroll? What options do I have to recover wages due? What is a lien and how would i go about getting one against the company?

Any other information you could spare would be great! Please help.

Thanks


Asked on 9/09/02, 12:56 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Investors will not fund payroll for work performed by employees

Outside investors do not have a direct obligation to pay for payroll unless there is some contract which places that obligation on them. Your employer is responsible for the wages and is the primary party from whom you recover. IF you are aware of any written agreement where the investors agreed to make payroll you can demand payment from them.

You can sue the company for your wages, and if you obtain a judgment you then have a "judgment lien" against the company's assets. However, if the company does not have any cash, it is likely that their other assets are pledged as collateral for other loans. If the company files bankruptcy your wages become automatically a priority debt - meaning wages are paid before many other expenses. There is no guarantee that you will be paid, even in bankruptcy.

Read more
Answered on 9/09/02, 2:20 pm


Related Questions & Answers

More Labor and Employment Law questions and answers in Utah