Payment of Accrued Wages

With my consent, during several periods over the past two years, my employer, an Indiana restaurant corporation, accrued a substantial portion of my agreed salary because it had cash flow problems. The accrued wages were to be paid to me when cash flow permitted, or upon termination of my employment. I have been terminated. I was in charge of marketing and advertising, and the company indicated that its cash position did not allow continued investments in those areas. Today, the company's controller advised that $34,153.96 is accrued on the books as unpaid wages due to me, but that the she has no funds with which to pay me. The company is in a precarious financial situation and may be sold or bankrupt shortly, but it is making some payments to suppliers and creditors, and meeting current payroll. I have written a demand letter. What else should I do?

1 answer  |  asked Nov 15, 2001 05:28 AM [EST]  |  applies to Texas

Answers (1)

Margaret A. Harris
Back Wages Owed by Employer

One suggestion is to go to the Texas Workforce Commission because you have a claim under the Texas Payday law. Should the company declare bankruptcy, however, you will be hurting. I suggest that you find one of the lawyers on Ask MEL's list who is in your area and make an appointment. It may be that the lawyer can work with the company to get an agreed judgment, which would at least put you at the head of the line should the company declare bankruptcy. That's just two ideas. Once you sit down and strategize with an attorney, that person may come up with another idea.

posted by Margaret A. Harris  |  Nov 19, 2001 2:57 PM [EST]

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