Q: Filed a wage claim For owed overtime wages through labor board, and now ex employer wants to settle by paying me $3000.
She is thinking of filing for bankruptcy, should I settle or is there another way to get what I’m owed?
A: If your former employer is really considering filing for BK, the quicker you get the money in your bank, the better off you will be. Cannot evaluate the claim because you did not say how much you asked LC for. The LC claim could become just another claim in BK and you would get a fraction of its value if anything at all.
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A: It is not uncommon, and in fact it is a normal tactic, for an employer to claim that they will file for bankruptcy as a way to get a former employee to give up on a major part of their claim. Usually it is not a real threat. Nonetheless, it can happen.
Many employee pay claims have priority in a bankruptcy meaning that if the employer files for bankruptcy protection you might still get paid.
If you want to get advice about what you should do, you are going to have to get specific, confidential advice from an attorney who can be allowed to understand all of the circumstances.
Good luck to you.
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