Can You Recover Money from Former Employer, Who Filed for Bankruptcy?
May 10, 2020
Q: My former employer is currently out of business and/or filed for bankruptcy. Can I still recover any money for my past employment?
A: Yes, you can.
Both federal, state and local law provides that one or more persons or entities may be responsible for your wages. So, even if the company you worked for stopped doing business or even filed for bankruptcy, you may still bring a lawsuit against the company’s owners or managers based on various theories:
- that they are responsible for employees’ wages as ten largest shareholders of the company;
- that they were your joint employers along with the company because of the level of operational control they exercised over the company and the employees;
- that the corporation was in fact their alter ego. Very often, another corporation for which your former employer performed services may be brought to account for your unpaid wages based on the relationship between that corporation and your former employer.
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