The nonprofit I worked for closed and owes everyone one week of pay. How can I collect that pay if they are out of money and have shut down?

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The nonprofit I worked for closed and owes everyone one week of pay. How can I collect that pay if they are out of money and have shut down?

– About 1000 employees were not paid for their
final week of work because the agency closed in
the middle of a pay period and laid everyone off.
– No vacation time was paid out.
– No communication was made regarding how to
collect owed money.
– I’m not sure if they’ve filed bankruptcy yet.
– Can this become a class action lawsuit?

Asked on October 25, 2019 under Employment Labor Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

The answer is, if they are out of money and shut down, you can't collect: a successful lawsuit (and we assume your suit would be successful, since they clearly owe you the money for the work you did) does not make money appear where is none. If there is no money, there is no way to collect on a judgment.


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