Does employer still have to pay unpaid wages?

UPDATED: Oct 1, 2022

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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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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