How can I get my last paycheck if my company closes down?

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How can I get my last paycheck if my company closes down?

My company shut down and let go all of the employees. We were told that we would not be paid our last paychecks and our medical benefits were cancelled. What can I do?

Asked on February 23, 2012 under Employment Labor Law, Utah

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

You can try suing the employer--the fact that they have ceased operations does not legally absolve them of their obligations, such as to pay employees for all work they did. Unfortunately, as a practical matter, if the employer no longer has income, money or other assets, then you may not be able to recover your last paycheck--regardless of legal rights, if there is no money, there is no way to be paid.

If the company was not a corporation (inc.) or limited liabiltiy company (LLC), you can sue the owner(s) personally. However, if it was a corporation or LLC, you can only sue the company itself.


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