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Shutting down a company- CA California

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  • Shutting down a company- CA California

    Back in July my company fired all their employees and said that they were going to file BK. Anyways, they never paid anyone for the last month pay period even if they were commissioned or salaried employees. Till this date they haven't file for bankruptcy. I have filed for due wages with the CA Labor board and have a court date for March. The office is vacant and they only have a PO box now. I don't think the owner is responding to any legal mail he gets. I probably won't even get a w-2 from them. Shouldn't the state be more involved to make sure he shuts his company down correctly and pays employees/taxes?

  • #2
    What anyone here "thinks" the state ought to be doing, does not a law make. Besides, you are not necessarily aware of everything the state is involved in.
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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    • #3
      I've since received my w-2 from the company who supposedly is running out of a storage facility now. Today I had my DLSE court date and of course the owner was a no show. The commissioner lady had a real attitude and I'm sure I won't get my due commissions as a judgement for me.

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      • #4
        Depending upon how large your employer is, the WARN Act may have been triggered. Here is some info.

        http://www.doleta.gov/programs/factsht/warn.htm

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        • #5
          Less then 100 employees.

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          • #6
            Then WARN does not apply.
            The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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            • #7
              Labor board ruled me no judgement in my favor. So even though company was a no show, I had to be on trail and was denied my commission I earned. Can I appeal?

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              • #8
                You can file suit for your unpaid wages in court.

                I am curious, however, as to the reason the DLSE gave you for its adverse decision. The DLSE routinely awards employees their unpaid wages (along with waiting time penalties and interest) in the types of situation you described.
                Barry S. Phillips, CPA
                www.BarryPhillips.com

                IRS Circular 230 Disclosure: This response is intended to provide general information and written for educational purposes only. It does not establish a client relationship. This communication is not intended to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to any party any matters addressed herein.

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                • #9
                  I was a loan officer. When the company shut down I couldn't get my hands on any of the documents that could show I processed the loan. The HUD and commission check I had didn't have my name all over it so she felt I didn't even work on the loan.

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                  • #10
                    Move on Jordan.

                    Sometimes you just have to admit to your losses.

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                    • #11
                      I know. I'm done.

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