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Small business being sued by someone that claims he was a employee.

I am being sued by someone that claimed he worked for me. He did not. His claim is for meal and rest breaks, minimum wage, no record keeping etc. I am going into bankruptcy because I can no longer afford to defend the lawsuit. I was told by someone that he is illegally in this country and targeted me because he is ready to return back to his country and wants to go back with a bankroll. I have a lawyer defending this who has now sent me to a bankruptcy lawyer. I can’t believe I am losing my business and being financially drained personal over this extortion. Am I missing anything, any ideas on a way to salvage the little I have left?

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Attorney answers (1)

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Disclaimer: The materials provided below are informational and should not be relied upon as legal advice.

First, be sure to review your insurance policies with your attorneys to see if any of your policies may defend or indenify you against the lawsuit. Second, your attorneys can advise you if this employee's case has any merits, and whether if you prevail on this lawsuit you can sue the employee and her attorney back for your costs. You should consult your own lawyers to protect your legal rights.
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