Unpaid wages, bounced paychecks, business closed, owners in hiding, Minnesota Minnesota Minnesota

[Carmen Maeva]

I worked as a bartender at a business that abruptly closed it's doors on Dec, 16, 06. We were not given notice. I now have one bounced paycheck, as do other employees, issued on Dec. 11 (p.p. ending Dec 5). I am also owed a week and a half's wages for the pay period immediately before they shut the doors. But, wait! There's more- out of my last two paychecks, my employers deducted insurance premiums and union dues. Neither were forwarded to those agencies. I'm also owed one week's severence per our Union contract.

The owners of the restaurant have not paid anyone anything. They have now changed their home phone #, hang up when you call their cell phone and did not respond to my demand for payment letter sent via certified mail on Jan 4, 07. They have not responded to anything from the Union either.

So, is this a matter for small claims/conciliation court, criminal charges (bad checks), both, or something else entirely? Our Union lawyer says that because they were operating as a corporation, all they have to do is empty the corporate bank accounts and claim they have no money to pay anyone. Can that be true?
Thanks in advance for any and all help.

Kari

[Pattymd]

Start with the contact info here:

http://www.doli.state.mn.us/pdf/records.pdf

The old line about "you can't get blood from a turnip" may apply here. On the other hand, a number of states have funds from which employees can be paid (at least minimum wage, which would be better than nothing) for bankrupt and unlocatable employers. Hopefully, that is the case in Minnesota. Good luck.

[Carmen Maeva]

Thanks for your reply, Pattymd. I talked to the DOLI today. Minnesota does not have a slush fund for poor schmoes like me. The best the DOLI can do in such a case is send a letter to the employers telling them they need to pay up and why. Apparently, it is a nasty sounding letter, but has no teeth. They don't take any legal action, I'm on my own.
It sounds as if ,in Minnesota at least, there isn't much protection against weasels like my bosses, other than small claims court.

[ScottB]

Originally Posted by Carmen Maeva

It sounds as if ,in Minnesota at least, there isn't much protection against weasels like my bosses, other than small claims court.

Darn shame they don't have a fund taken care of by other businesses and individual taxpayers. Lobby your legislators to establish one.

As I recall, when a company goes bankrupt, unpaid wages go to the top of the pile of creditors to be paid. So, if there is any money left, employees should be paid first, then taxes, then other creditors.

[Pattymd]

Has the company filed for bankruptcy? I believe BK filings are public information.

[Carmen Maeva]

They have not filed bankruptcy. I wish they would, then I'd have a fighting chance. I've learned that they can hide behind their corporation, which is now inactive and has closed all it's bank accounts. Apparently, the way the law works in MN is that only the corporation is liable for unpaid wages, I cannot hold the principles accountable. So, they get to walk away and thirteen people go unpaid. I can attempt to sue the corporation in small claims court (if I can even find an address to properly serve them), but they can simply claim the corp. is inactive and has no money and they are off the hook. What a system!