Legal Question in Employment Law in California

Labor board says employer owes, but company was sold

I had a wage and hour hearing, and the hearing officer said my former employer, a California corporation, was to pay me back wages and penalties. Now I find out that on the same day as the hearing (which the employer did not attend), the corporation was sold to another company (also a corporation, I believe).

Furthermore, a couple of weeks before that I got a copy of a letter from the IRS to my former employer, stating that they had made the determination that I had been an employee, not an independent contractor, and that the company should have paid employment taxes and done withholding for me (and presumably its 40 other people who did the same job I did for them).

I had information regarding my employer's bank account, from my paychecks, and had intended to levy on this account. I doubt that will be possible now, but I do wonder whether the corporation that purchased the company I worked for ''inherited'' the company's debt to me. Am I just out of luck here?


Asked on 1/30/05, 11:40 pm

2 Answers from Attorneys

Joel Selik www.SelikLaw.com

Re: Labor board says employer owes, but company was sold

No your not out of luck, but there are a number of legal actions you will need to take and a bunch of work and some luck.

JOEL SELIK Attorney at Law

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Answered on 2/05/05, 8:24 pm
Robert F. Cohen Law Office of Robert F. Cohen

Re: Labor board says employer owes, but company was sold

I'm sure there are collection attorneys on LawGuru who can better answer this question. If the new company is a mere successor with the same officers created to avoid the liability to you and the other 39 employees, the judgment can be amended to include the new company. Perhaps the owner can be held personally liable as well.

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Answered on 2/04/05, 9:56 pm


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