Courts create a wide berth for wage payment lawsuits — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Courts create a wide berth for wage payment lawsuits

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in Office Management,Payroll Management

Federal and state courts don’t have to go out on too long a limb to allow employees to sue for their unpaid wages and to find corporate officers personally liable under state wage payment laws for failing to pay those wages. Two recent cases illustrate.

Case #1: Six years to sue in New Jersey. New Jersey’s wage payment law doesn’t contain a statute of limitations for employees to sue their employers for unpaid wages.

A company went through Chapter 11 bankruptcy. Employees who were owed commissions participated in the bankruptcy proceedings, but they couldn’t collect 100% of what they were owed. More than three years after they were fired, they sued the company’s officers personally for damages equal to their unpaid wages.

Officers’ claims: The two-year statute of limitations that applies to wage and hour cases applies here. Further, employees participated in the bankruptcy proceedings, so they shouldn’t get two bites at the ...(register to read more)

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