Does employer still have to pay unpaid wages?

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Does employer still have to pay unpaid wages?

Wages, overtime, and vacation was promised
to be paid after LLC company in the US was
closed down due to company owner in Canada
going into receivership and possibly
bankruptcy. Already filed a labor board
complaint and it has been suggested to write a
10 day demand letter to the registered agent of
the corporation.

Asked on December 17, 2018 under Employment Labor Law, South Carolina

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

Legally, they have to pay you. Practically, if the U.S. LLC is insolvent or out of business or bankrupt, etc., you may never be paid: it doesn't matter what your legal rights are, if there is no money to pay you. An LLC is its own entity: the owners, managers, etc. of an LLC are not responsible for its debts. Only the LLC you worked for has to pay you. You can sue them for the money, since they are obligated to pay you your wages, but if they have no money, winning the lawsuit will not result in you being paid.


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