Labor Comm cited me alleging owed wages to ex-employees from 8 mos prior to my filing bankruptcy. i have since been discharged

Asked 11 months ago - Los Banos, CA

last date i had employees was July 2012. my business went under due to fraudulent allegations of owed wages. In march 2013 (8 mos later) i filed bk 7 & listed all my ex-employees as creditors. in July 2013 i was cited by the Labor Comm for alleged owed wages to appear today, 08/23/13. Meanwhile, my bk was discharged on 07/30/13 w/no assets. i appeared, denied allegations, & presented my case. the hearing officer advised we would be notified w/in 15 days of his decision. The LC agent knew i filed bk because she presented my creditors list (ex-employees are listed) as an exhibit. if the officer decides that i owe the wages, will i have to pay even though i have been dischargd? Since i have been discharged, did i even need to appear? should i just send them a copy of my discharge?

Attorney answers (3)

  1. Brian Crozier Whitaker

    Contributor Level 17

    3

    Lawyers agree

    Answered . The Labor Commission must not have been aware of your BK when you were originally cited. You will not have to pay the wages; but if the officer erroneously decides that you do, you may have a fight on your hands.

  2. Stuart Gregory Steingraber

    Contributor Level 17

    2

    Lawyers agree

    Answered . I agree with my colleagues about your need to confer with a BK lawyer ASAP.

  3. Dorothy G Bunce

    Pro

    Contributor Level 20

    3

    Lawyers agree

    Answered . I would be meeting with a bankruptcy litigation attorney to discuss whether or not you have a claim against the labor commission for violating the bankruptcy discharge. I am frankly shocked that you didn't pursue this remedy when you first became aware of their claims. Even the state has to abide by decisions of the bankruptcy court. Hope this perspective helps!

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