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LawGirl
LawGirl, Lawyer
Category: Employment Law
Satisfied Customers: 4606
Experience:  I have practiced employment law.
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I have an employment agreement with a company and they have

Resolved Question:

I have an employment agreement with a company and they have not paid me anything against it for over 18 months. The agreement says that issues will be settled thru arbitration, my only issue is that I have not been paid anything. Do I still go thru an arbitration process to get my money?
Submitted: 6 years ago.
Category: Employment Law
Expert:  LawGirl replied 6 years ago.

LawGirl :

Thank you for your question. To the extent the company does not have any money, even in arbitration, it may be difficult to get them to pay you. You may consider reporting your employer to your State Department of Labor or Industry to see if they can help you in getting paid.

LawGirl :

To the extent that you do initiate arbitration, you will want to review the agreement to see how the arbitration provision is written. Many times the employer will pay for arbitration. To the extent that your employer does not have any money, in order to get to arbitration, you may need to find the funds to pay the arbitrator. Many times arbitration fees are due at the time of booking the arbitration.

JACUSTOMER-ep1do8o9- :

I thought there were Arizona State Labor laws in effect that holds the Directors of the company personally liable at the rate of triple damages.

JACUSTOMER-ep1do8o9- :

Are you working on a response to my question?

LawGirl :

The question did not specify that you were in Arizona, please allow me to reference that statute.

JACUSTOMER-ep1do8o9- :

OK....should I stay in chat and wait or should i wait for you email to get back in chat?

LawGirl :

Either works.

JACUSTOMER-ep1do8o9- :

OK....I will just stay in Chat mode

LawGirl :

Thank you for your patience. In this situation, I do not see where Director liability would apply. Under the Arizona Statue,section 23-355 section A, "... an employer, in violation of this chapter, fails to pay wages due any employee, the employee may recover in a civil action against an employer or former employer an amount that is treble the amount of the unpaid wages."


 

LawGirl :

I can find nothing under state law that ascribes personal liability with regard to unpaid wages.

JACUSTOMER-ep1do8o9- :

I was told that Directors are liable for employee wages, liable to the State and Federal government for taxes etc. as well as state sales taxes if not paid.

LawGirl :

That is definitively true under the federal Fair Labor Standards Act.

JACUSTOMER-ep1do8o9- :

So it is valid under Federal law and not under State law.....if so, where does that leave me?

LawGirl :

Either way, the fact that you have an arbitration agreement may preclude your ability to take legal action. You may be forced into arbitration unless you try to ask the Department of Labor or some such entity for assistance.

LawGirl :

Being forced to arbitration will depend on how your agreement is worded.

LawGirl :

Do the Directors have significant money and/or assets?

JACUSTOMER-ep1do8o9- :

Yes, two of the three directors do have significant money.

LawGirl :

Has your agreement been reviewed by a local attorney?

JACUSTOMER-ep1do8o9- :

no

LawGirl :

Then you may want to have the agreement reviewed by a local attorney and sit down with someone who can figure out what limitations your face. Go to www.martindale.com to find an attorney who will consider giving you a free consult. In understanding all of the relevant facts, the attorney can let you know what law is applicable and what theories of law can be utilized to get you the biggest recovery.


 

JACUSTOMER-ep1do8o9- :

OK....thanks for the help

LawGirl :

Best of luck to you!

LawGirl and other Employment Law Specialists are ready to help you

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