When Company Fails to Pay Employees After Bankruptcy

When Company Fails to Pay Employees After Bankruptcy

When a company files for bankruptcy, it is often difficult and stressful for all involved, including the employees. In some cases, the company may not have the funds available to pay their employees their last paycheck or any severance package that may have been agreed upon.

Labor Laws

This can lead to legal consequences for the company, as failing to pay employees their earned wages is illegal in most cases. In the United States, the Fair Labor Standards Act (FLSA) requires that employers pay their employees at least the minimum wage for all hours worked and any overtime hours at a rate of at least one and a half times the regular rate of pay.

Additionally, the FLSA and state labor laws require that employees be paid all earned wages, including any unused vacation or sick time, at the time of termination. If a company fails to do so, it may be penalized and fined.

Rights of an Employee

Employees who have not been paid their earned wages may also have the right to file a claim with the bankruptcy court to recover their unpaid wages. In some cases, the court may order the company to pay the employees their unpaid wages from any available assets.

Employees must understand their rights and options if their employer files for bankruptcy and fails to pay them their last paycheck or any severance package. Seeking the advice of an experienced bankruptcy attorney can help employees ensure that they receive the wages and benefits to which they are entitled.

Bankruptcy Attorney Free Consultation

If you are looking for a legal advice about bankruptcy or in need an attorney, call this law firm for free consultation. We have the Best Attorneys in Utah.

Ascent Law LLC

8833 S Redwood Road Suite C

West Jordan UT 84088

(801) 676-5506

https://www.ascentlawfirm.com

Disclaimer: This is not legal advice and is simply an answer to a question and that if legal advice is sought to contact a licensed attorney in the appropriate jurisdiction.

Location: Ogden, UT, USA

Popular posts from this blog

How Long Does A Personal Injury Claim Take To Go To Court?

Image
How long does a personal injury claim take to go to court? Min Austria Assistant at Ascent Law LLC Injuries can take a while to recover from—some of them can make it difficult or impossible to work for months. This is why it's important to know what happens when you file a personal injury claim. Your case will progress through several stages before going to court. The time between each stage depends on the complexity of your case, but it's also influenced by how much pressure you're willing to put on the other side. Each stage builds on the one before it—if there are problems at any point, your claim may be dismissed, and you'll start over at Step 1. If you have any questions or need a  Personal Injury Lawyer , please call this law firm for a free consultation. Ascent Law LLC 8833 S Redwood Road Suite C West Jordan UT 84088 (801) 676-5506 Utah Lawyer for Divorce Business Bankruptcy Probate Estates Ascent Law helps you in divorce, bankruptcy, probate, business or crimina...
Read more

What Is The Best Way To Protect Your Estate From Probate?

Image
What is the best way to protect your estate from probate? Min Austria Assistant at Ascent Law LLC The best way to protect your estate from probate is to keep it simple. If you are the primary beneficiary of your estate, and the executor, you may be tempted to fill out all the paperwork involved with a will. However, those pieces of paper could make a mess of things when it comes to actually getting your estate into the hands of those who would inherit it. Probate is the legal process that happens after a person dies where an executor gathers up all the assets, pays off any debts, and distributes them according to the will. As an example, let's say you own a house together with your brother and want him to get full ownership after you die. If you leave him everything in your will, he'll have to go through probate when you die just as if he were inheriting from his parents. The extra paperwork involved can be costly and time-consuming for everyday life as well as for administerin...
Read more

If A Person Had No Will, Does Their Estate Have To Go Through Probate?

Image
If a person had no will, does their estate have to go through probate? Min Austria Assistant at Ascent Law LLC If the deceased person had a will, the executor named in the will is responsible for filing the will with the appropriate probate court and following through with probate. If there was no will, or if the person who died left no known relatives and no will, then the estate may have to go through probate. Section topic: If a person has a will, what is an executor? When a person dies, their estate goes through probate when it is not left to anyone specifically in their will. If the person has no will, their estate will still go through probate, and it will be given to a relative or other person named by law. When someone dies without a will, they're said to have died "intestate." If this happens, the person's estate—everything they own—has to go through probate. The process of probating an estate is a court-supervised process for distributing a person's prop...
Read more