Nevada City, CA asked in Civil Litigation, Employment Law, Tax Law and Small Claims for California

Q: Employer hasn't paid full wages for a year. Recently, business became LLC. Can employee get past wages still?

Employee was working "under the table" but is still paid by company check at times. July 2019 to Jan. 2020 unpaid hours are 336.75 hours. Employers reason for not paying is he is waiting for final job payment. In good faith employee accepted excuse. Employer has given token payment towards wage hours (i.e. 7-17-19 thru 10-16-19 was paid $500 towards hours owed. No other payment for wages until 12-23-19 of $1000.00) . In a conversation with employer, employer stated "becoming a LLC was in best interest of all employee's and protected employer's assets and property from debts incurred by his business"? How does employee get past wages from employer?

2 Lawyer Answers
Donald M Barker
Donald M Barker
Answered
  • irvine, CA
  • Licensed in California

A: Original employer, whether a Corp, LLC, sole proprietorship, or partnership is always liable for wages, even if company dissolves or goes out of business--then owner or shareholders can be liable.

If a business "converts" from sole proprietorship to Corp, LLC etc., the "new"

company remains liable for all wages owed.

You are most likely entitled to waiting time penalties and fines, including interest and atty fees, too.

dmb

1 user found this answer helpful

Maurice Mandel II
Maurice Mandel II
Answered
  • Newport Beach, CA
  • Licensed in California

A: The employer's conversion to LLC does not do what he thought, since, under the Labor Code, you can pierce any corporate format and get at the person making the decisions to STEAL YOUR WAGES. You have a 3 year statute of limitations to get back wages but only 1 year to collect penalties, such as $50 per pay period for not being given a proper statement of earnings. There are other potential claims you are losing out on because you are waiting too long. The 1 year statute allows you to reach back one year from the date you file a claim with LC or a lawsuit. If you are owed less than $10,000 in wages, you should go to small claims and seek wages, liquidated damages for unpaid overtime (even if he later paid some of it), interest, and other penalties. There are penalties for not paying you all wages at least twice a month. Consult an employment attorney in your area right away, and get your claim going against both the original owner and the LLC.

Justia disclaimers below, incorporated herein.

1 user found this answer helpful

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.