I am an employee of an LLC which is going broke, can I suethe ownerpersonally for back salary/ commission since I am an employee and not a regular creditor?
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I am an employee of an LLC which is going broke, can I suethe ownerpersonally for back salary/ commission since I am an employee and not a regular creditor?
I am a distanced employee in one state while the LLC is in another. Will that matter? The owner acknowledges that I am owed back salaries and commissions on sales which totals about $12000. I have e-mails confirming my amounts and the acknowledged arrears amounts. Should I do this before I quit and or before the LC files for bankruptcy? Do I have any recourse or backing from the legal system?
Asked on November 23, 2011 under Employment Labor Law, Maryland
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Unfortunately, if you were hired by the LLC, not by the owner personally, and the owner did not in any way guaranty your salary or commissions, you most likely do not have any recourse against the owner personally. The owners of an LLC are not responsible for business debts or obligations, except to the extent they personally guarantied them (or for certain specific debts, such as certain tax debts). You can sue the LLC--with the obvious problem that if it has no money or declares bankrupcy, you are unlikely to collect--but not the owner, based upon what you write.
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