If an employer dies unexpectedly, willan employee still get paid for work done?

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If an employer dies unexpectedly, willan employee still get paid for work done?

My husband has been his employer’s right hand man. After an illness, his employer passed away yesterday. Will my husband still get paid? The business is incorporated. Will it be frozen? What happens next?

Asked on September 21, 2010 under Employment Labor Law, Oregon

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 14 years ago | Contributor

1) If the work has been done, your husband has a legal right to be paid for it.

2) If the business is incorporated, in theory it should survive the death of an individual, even the owner or a senior manager. At the least, since a corporation is it's own legal entity, your husband could, if necessary sue it for his pay--and to look to recover from corporate assets.

3) The above is the law.  In practice, if it was a small business, running close to the wire economically or with no one else who had authority and knowldge other than the employer, there either might be no money to pay, or there might be no one who even knows what money the business has.


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