Trying to get backpay

What is the name of your state? Tennessee

I am attempting to get 7 weeks backpay from my former employer. The state and US labor boards say there's nothing they can do since the company tells them they have no money. Yet they are paying their rent, utilities, etc. and the office is still open. They are not producing any product for seizure. They have not filed bankruptcy. They are still listed on the stock market. There are 6 of us owed backpay.

Being unemployed and owed backpay, I cannot afford an attorney or find one to do it pro-bono or even on contingency. Everyone including an attorney I called, DOL, and friends suggest filing a small claims. I have decided to do this but have a few questions.

1)The director of finance is the only employee left locally. Even though he says he is not an officer, I have been told he can still be served since he has claimed to be managing the local office. Can he be served legally and it hold up? The owner is in Hong Kong so that is moot.

2)There's no doubt they owe me and I have written proof they agree. What happens when we go to court, the judge rules in my favor, but the co. says they have no money? Do they have to pay on the spot or are they generally given time? What if they say they will pay and then don't? They have an office and storage facility full of furniture and computers. Will the judge seize their assets and sell them? Can I ask him to? If selling the assets is not an option, how do I get my money?

3) There are several vendors already suing the co. for material received and not paid for. Will my pay be considered before the vendors?

4) Since there are 6 of us can we file a small claims jointly?

5) Can I include the cost of the filing fee in my claim? Should I include interest for the 5 months I have been waiting?


Sorry for such a long post but I have had no experience in this before. Any and all advice is appreciated.

Please help.

1. Only if he owes you the money. If it is the company that owes you, you will have to sue the owner for the backpay.

2. If you sue and win, it will be up to you to collect the money. You will not be given the money in court when the verdict is given. You could go through the processes of seizing property and forcing the sale of the property. The process varies state to state. Some states only allow the placing of liens on real property, other states allow you to back a truck up to the door and haul away stuff.

3. Probably not. Employee salaries are way down on the list of who gets paid. Taxes and other government fees will be collected first. Then collatoral creditors get paid or get back the merchandise, then service creditors such as power and water companies. Then follows unsecured creditors such as you would be considered. The more legal power you have, the higher up you will be on the list. It is usually the big companies first, folks such as you last.

4. You probably will not be allowed to use small claims court in your situation. Only individuals can be sued in SMC, you will be suing a company. You will have to sue in a district or superior court. 6 folks are not enough for a class action suit, you each will have to sue individually.

5. You can include all costs of attempting to collect your pay. This would include filing fees, court costs and even your legal fees. You cannot add interest on the backpay unless your employement agreement calls for interest to be paid when employee payroll is late. If you win a judgement against the company, you can include provisions for interest to accrue on the unpaid balance. But that interest would start the day the judgement was issued, not from when the pay was late.

You really need to see a lawyer for your situation. He would be more able to determine if the backpay is even collectible Good luck.