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Employee rights in business bankruptcy

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dittomom2

Guest
What is the name of your state? California

I live and work in California, but my employer, a privately held corporation, is located in North Carolina. I am a salaried employee, paid once a month.

On Sept 13, a Friday, a former company executive bought out a bank loan that was in default and took over the company. They are using the existing offices and phone numbers. I didn't know that my employer was poised to file bankruptcy.

The new entity has asked me to continue as an employee.

My questions are: who is responsible for paying my wages for the time period of Sept 1 through Sept 13? Is that handled through the bankruptcy process? Can I file for unemployment benefits, since I wasn't paid but did worked during that period?

I have business expenses on a company issued American Express card incurred in August. Is the new entity responsible for those, or is that also part of the bankruptcy process. Am I responsible for those debts? The bills were sent to the corporate address and were paid by my employer, but my name was also on the card.

There were also other business expenses such as mileage, that I have not been paid for. Can I expect to see those reiumbursed from the bankruptcy filing?

Do I need an attorney? If so, should it be here in CA or in NC?
 


JETX

Senior Member
Q1) "who is responsible for paying my wages for the time period of Sept 1 through Sept 13?"
A1) The 'new' owner very probably purchased all the assets and liabilities (unless exempted) of the company when he took over. I would presume that the new owner would pay. Have you talked with them about the issue of pay and what did they say??

Q2) "Is that handled through the bankruptcy process?"
A2) Your post says that the original company was on the virge of filing bankruptcy, so we assume that they didn't really file. And without that filing, there is no 'bankruptcy process'.

Q3) "Can I file for unemployment benefits, since I wasn't paid but did worked during that period?"
A3) No. Your claim is against the employer who did NOT pay you. Contact your state Dept. of Labor.

Q4) "I have business expenses on a company issued American Express card incurred in August. Is the new entity responsible for those, or is that also part of the bankruptcy process. Am I responsible for those debts?"
A4) What did your new (and old) employer say when you asked them this question??

Q5) "The bills were sent to the corporate address and were paid by my employer, but my name was also on the card."
A5) It is very probable that you will be liable if the employer does not pay, but this depends on the agreement that you signed (in getting the card).

Q6) "There were also other business expenses such as mileage, that I have not been paid for. Can I expect to see those reiumbursed from the bankruptcy filing?"
A6) Did they file or not?? If not, then you have NO process.

Q7) "Do I need an attorney? If so, should it be here in CA or in NC?"
A7) Until you get answers to your questions in WRITING, getting an attorney should wait.
 
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dittomom2

Guest
Additional information

Thanks for the quick response. Located in California

According to the new owners, the previous employer filed for bankruptcy last week, so they are working with the judge to have funds released to pay back wages.

I am working on getting information on the expenses. Thanks for the feedback, it helps!
Ann
 

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