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Laid off in TX-Final Paycheck Issues Texas

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  • Laid off in TX-Final Paycheck Issues Texas

    I was laid off, among others. We are owed 4 working days of pay, in addition to commissions earned from a prior period.

    As of this point, the offices are locked down due to non payment of rent.
    We are well over the 6 days for processing a final paycheck, and the fact still remains that the company has no cash assets right now to pay anybody. There is a very good possibility they might file BK.

    I know about the Payday law here, but I guess my questions is this: Even if I went thru the investigation stage for Tx Payday, and say they find the employer obligated to pay final wages owed, if a company is basically insolvent, aren't the employees out of luck?

    And if this ended up in a US BK claim, the trusteee would probably find the employer as a 'no asset' case and the wage claims would be discharged in the BK.

    Are there any other options I might be missing?

    Thanks!

  • #2
    You can file a wage claim with the TWC or file a lawsuit against the employer for wages/commissions due. If the employer declares bankruptcy, you would need to put in a claim as a creditor along with other creditors the co. owes money to. Whether or not you receive all or part of what is due you would depend on the # of creditors & the assets of the co.
    Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

    Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

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    • #3
      Well, if they sold some of their 'assets' furniture, cubicles, computers, etc.
      They'd have enough to make payroll. Except all of that equipment is 'locked up' by the leaseholder, so I'm not sure if they have legal rights to it in order to cover rent.

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      • #4
        Probably not in this case if there is a leaseholder on the assets.
        Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

        Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

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        • #5
          There's no leaseholder on the assets, per se.

          I'm wondering if the leaseholder for our office that was leased has any rights to the assets, since the company is in arrears on the rent. We were trying to sell some of the stuff prior to the landlord changing the locks so that we cannot get in to get anything out.

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          • #6
            I wouldn't think he has any more rights to the assets than any other "creditor" (person/business) to whom the employer owes money. If the employer files for bankruptcy, the assets would become part of the bk estate.
            Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

            Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

            Comment

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