What to Do If a Previous Employer Hasn’t Paid After a Judgment?

Question from Alisalias, What to Do If a Previous Employer Hasn’t Paid After a Judgment?

Answer from AI:

When you’ve taken the steps to report a non-paying employer to the labor board, successfully won a judgment against them, but still haven’t received payment after two years, it can be both frustrating and financially straining. In the United States, there are specific actions you can take to enforce the judgment and attempt to collect the money you are owed. It’s important to understand that while the process can be complex, there are resources and legal avenues available to help you.

Understanding Judgment Enforcement

A judgment is a court’s decision that legally obligates the losing party (in this case, your previous employer) to fulfill certain obligations, such as paying you the money you’re owed. However, obtaining a judgment is only part of the battle; enforcing it is another challenge.

Here are steps you can take to enforce the judgment and seek payment:

1. Consult with a Lawyer: While not always necessary, consulting with a lawyer experienced in labor laws and judgment enforcement can provide you with personalized advice and strategies based on your specific situation. They can help navigate the complexities of the legal system and suggest the most effective enforcement actions.
2. Locate the Employer’s Assets: To collect on the judgment, you’ll need to know if your former employer has assets that can be used to satisfy the judgment. This can include bank accounts, real estate, and other property. There are legal procedures, such as debtor examinations, that can help uncover these assets.
3. Wage Garnishment: If your former employer is still operating and has employees, you might be able to garnish their wages. This means a portion of their earnings will be withheld and directed to you until the judgment is satisfied.
4. Bank Levies: If you can identify bank accounts belonging to the employer, you may be able to obtain a court order to freeze and seize funds from those accounts.
5. Property Liens: Placing a lien on property owned by the employer can ensure that you are paid from the proceeds if the property is sold. This can include real estate or other valuable assets.

Additional Considerations

• Time Limits: Be aware that judgments have expiration dates, known as statutes of limitations, which vary by state. It’s crucial to take enforcement action before your judgment expires.
• Employer’s Financial Status: Unfortunately, if your former employer has declared bankruptcy or truly has no assets, it may be difficult or impossible to collect on the judgment. In such cases, consulting with a bankruptcy attorney may provide clarity on your options.
• State Resources: Some states offer additional resources or programs to help workers collect unpaid judgments. It’s worth researching or asking your lawyer about any such programs in your state.

Seeking Legal Advice

While this guide provides a general overview, every situation is unique. It’s strongly recommended to consult with a legal professional who can provide advice tailored to your specific circumstances. They can help you understand your rights, the applicable laws, and the most effective course of action.

For more information on labor laws and workers’ rights, you can visit the U.S. Department of Labor’s Wage and Hour Division website. Additionally, the National Consumer Law Center offers resources and guidance for consumers and workers dealing with debt collection and enforcement issues.

Remember, while the process of collecting on a judgment can be challenging, there are legal tools and resources available to help you assert your rights and seek the payment you are owed.