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One of the investors for my previous employer loaned me

Customer Question
One of the investors...

One of the investors for my previous employer loaned me $8000 3 years ago. I quit the company 2 months ago and they owe me $42,000 in payroll checks. Can that investor come after me for the $8000 even though they owe me 4 times that amount?

Lawyer's Assistant: Because employment law varies from place to place, can you tell me what state this is in?

The original loan was when I was in New York, but I live in Florida now. The loan was so I could use it towards a down payment for my house in Florida

Lawyer's Assistant: Is the employment agreement "at will," union, full time or part time?

I was full time, salaried employee

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

That's it, I have a promissory note saying that it's due January 28th, 2018, but he sent me a letter saying it's due January 1st.

Submitted: 7 months ago.Category: California Employment Law
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Answered in 1 minute by:
12/8/2017
California Employment Lawyer: legalg, Other replied 7 months ago
legalg
legalg, Other
Category: California Employment Law
Satisfied Customers: 13,631
Experience: General Practitioner. Research Attorney
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Hi! A few minutes please as I review your question so I can provide you with legal information-thanks!

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California Employment Lawyer: legalg, Other replied 7 months ago

So to be clear, an investor lent you money, and the employer owes you money? but the 2 are separate entitities, correct?

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Customer reply replied 7 months ago
but the investor is very active in the company and knows they owe me the $42K. Which makes it pretty much impossible for me to pay back the $8000.
California Employment Lawyer: legalg, Other replied 7 months ago

Thank you;

the 2 issues would be completely separate; only the parties to an actual contract have "standing" to deal with that contract; so for example the contract between the investor and the borrower would be one separate contract; the payroll issue between the employee and employer would be another issue.

So for example, if the investor wishes to sue when the promissory note comes due, the investor may do so regardless of the employer's liability to the employee for back payroll, or for any financial considerations. The court will simply look to see if there was a breach of the promissory note; if so they will enter judgment. They will not look to the transactions as between third parties.

Similarly if the employee sues the employer for unpaid wages, the employee would receive a judgment for those funds and the investor would not be able to be involved in that litigation as that is a separate issue.

The department of labor does deal with unpaid wages; please see:

https://www.dol.gov/whd/

A civil suit can also be brought.

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California Employment Lawyer: legalg, Other replied 7 months ago

Hello again; just checking in to see how things worked out;

If you have no further questions a positive rating is most appreciated (at no additional cost to you) and allows the site to credit my account for the time spent assisting you!

if you have further questions please don't hesitate to reach out to me here on Just Answerand I will do my best to get you the requested information.
Thanks!

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