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How do I make sure I will receive my past paycheck if my employer is filing bankruptcy?

How do I make sure I will receive my past paycheck if my employer is filing bankruptcy?

Full question:

My former employee has failed to pay me. I have reported it to the Department of Labor; however it has been brought to my attention that he is about to file chaper 13 bankruptcy. What do I need to do to ensure I get my money, the money I have already worked for.

Category: Employment
Date: 04/07/2025
State: Georgia

Answer:

Please see the information at the following links:

http://www.las-elc.org/empbankrupt.pdf

http://www.workplacefairness.org/employer-bankruptcy-lawsuits

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

How long does it take for the Department of Labor to investigate?

The duration of a Department of Labor (DOL) investigation can vary widely based on the complexity of the case and the number of complaints filed. Generally, investigations may take anywhere from a few weeks to several months. Factors such as the availability of evidence, the need for interviews, and the cooperation of the employer can all influence the timeline. It's advisable to stay in contact with the DOL for updates on your specific case.

Are unpaid wages dischargeable in bankruptcy?

Unpaid wages are generally considered priority claims in bankruptcy. Under Chapter 13, these claims must be paid in full through the repayment plan. However, if the employee had received wages more than 90 days before the bankruptcy filing, those wages may be dischargeable. It's important to file a proof of claim to ensure your right to payment is recognized in the bankruptcy proceedings.

How are workers protected if they file a complaint against an employer?

Workers are protected from retaliation under various labor laws when they file a complaint against their employer. This means that employers cannot fire, demote, or discriminate against employees for asserting their rights. If retaliation occurs, the employee can file a complaint with the Department of Labor or seek legal action. It's crucial to document any incidents of retaliation to support your case.

What happens to employees when a company files Chapter 13?

When a company files for Chapter 13 bankruptcy, it typically reorganizes its debts and creates a repayment plan. Employees may continue to work for the company, but their unpaid wages will be treated as claims in the bankruptcy process. Employees should file a proof of claim to ensure they receive the wages owed to them as part of the repayment plan.

What triggers a DOL investigation?

A Department of Labor investigation can be triggered by various factors, including employee complaints about unpaid wages, violations of labor laws, or audits initiated by the DOL itself. Common triggers include reports of minimum wage violations, overtime disputes, or unsafe working conditions. If a significant number of complaints are received, it may prompt a more extensive investigation.

What happens when an employee files a complaint with the Department of Labor?

When an employee files a complaint with the Department of Labor, the DOL will review the complaint and may initiate an investigation. This process involves gathering evidence, interviewing the employee and employer, and determining if there are violations of labor laws. If violations are found, the DOL may take action to recover unpaid wages or enforce compliance with labor regulations.