If my paycheck bounced and my employer’s bank accounts are frozen, can I still receive my money since the company has closed?
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If my paycheck bounced and my employer’s bank accounts are frozen, can I still receive my money since the company has closed?
I work for a health services company. My paycheck bounced on the 25th and was told that the
office would be closed Friday and Monday and those would be paid days off. I reported to work today and was told they are closing the office. Can still get what is owed to me? I have a month of vacation and I’m owed 4 weeks of salary. The ADAMH board has taken over for the closing of the office.
Asked on April 30, 2019 under Employment Labor Law, Ohio
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
If the company was an LLC or corporation and it still exists (has not been dissolved, even if it has closed--and it should not be dissovled while there are outstanding debts), you can sue for your money, but if they don't have it in the corporate accounts (or those accounts are frozen, such as due to a court order), you will not get the money: you can only get money if there is any, and with an LLC or corporation, you can't sue the owners or officers--only the business itself. Therefore, if the business is insolvent, even though you a legal right to be paid, there is no way to get the money.
If the company was a sole proprietorship or a general partnership, you can sue the owners(s) personally, since in those cases, there is no separate legal entity: the owner(s) are essentially the company, and are liable for its debts.
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