Legal Question in Business Law in Michigan

If an LLC, that is out of business, is getting sued for not paying wages to an employee who is responsible for it?

The company is out of business and all of the assets have been liquidated. All remaining money was paid to creditors.

Asked on 3/03/17, 10:36 am

1 Answer from Attorneys

Thomas R. Morris Silverman & Morris, P.L.L.C.

If you are looking for an answer to help the former employee who was stiffed, there are both state and federal possible remedies. On the state side, a complaint to the wage and hour division of the Michigan Department of Labor could be helpful. On the federal (and also state) side, there may be a theory under which an individual who controlled the LLC is deemed to have been the employer and therefore personally liable. The fact that the LLC was nominally the employer may not provide complete legal protection to those who operated the LLC. If you are looking for absolute assurances for the owner, those absolute assurances do not exist based upon the few facts you gave.

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Answered on 3/03/17, 11:03 am

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