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Allen M., Esq.
Allen M., Esq., Employment Lawyer
Category: Employment Law
Satisfied Customers: 18790
Experience:  Employment/Labor Law Litigation
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Simple one (Arizona) A small business (cell phone repair

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Simple one (Arizona)

A small business (cell phone repair shop) that I owned with one partner went out of business a couple months ago and has been permanently closed. One of our employees was owed $1,800 at the time and we couldn't pay it.

Employee has now filed a wage claim. Do I even respond since we still are unable to pay it?

Thank you for your question today, I look forward to assisting you. I bring nearly 20 years of legal experience in various disciplines.


You need to respond, as failure to respond may result in an assessment of fines. Wages are the first thing to be paid when closing a business, so the state is going to want to review how you closed the business and where the closing capital went.


You don't want them making assumptions in your absence, because they will make decision against your interest and take evidence in the light most favorable to their position if you don't include yourself in the discussion.

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