Employees not paid by owners for over 2 weeks.

I was working for a company who claimed they did not have the funds to pay their employees. I decided to resign and take a position elsewhere, but am still owed about 1 1/2 weeks worth of pay; as are the other employees. Is there legal course of action when the company does not pay their employees and is basically going out of business? Please help!

1 answer  |  asked Apr 19, 2002 5:53 PM [EST]  |  applies to Pennsylvania

Answers (1)

Christopher Ezold
There is a legal course of action.

Under the Pennsylvania Wage Payment and Collection Act, wages are due you for the time you worked on the normal payday for such wages. The Act provides for significant penalties for failure to pay, including criminal liability and jail time.

However, the biggest problem you seem to have is that the company may have no money to pay you. If the company is going bankrupt, you will become another creditor to whom the company owes money in bankruptcy. You will have to make your claim as soon as possible, before other creditors get paid (i.e. vendors, banks and customers). The good news is that unpaid employees generally are first in line to get paid when a company goes bankrupt. If you need any more information, please feel free to contact me.

Christopher E. Ezold, Esq.
Nancy O'Mara Ezold, P.C.
401 City Line Avenue,
Suite 904
Bala Cynwyd, PA 19004
(610) 660-5585

posted by Christopher Ezold  |  Apr 22, 2002 11:11 AM [EST]

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