Copyright (c) 2014 Mark Shapiro
What if you've got a state labor board judgment, what are the chances your judgment will be collected? The short answer is it all it is dependent on the status of the prior employer.
One of lots of judgment-related: I'm the Judgment Broker, not a lawyer, and this article is only my opinion based on my long term experience, please hire an attorney when you need legal advice.
There's 3 possible roadblocks in recovering a labor board judgment. Potential problem number one (particularly these days) is the business that owes you may now be out of business. If it's out of business and your judgment is relatively small, you are probably out of luck.
The second possible problem is A labor board must register their award paperwork with a court to obtain the judgment. (Within California, the DLSE.) Usually, they do this automatically. But, sometimes you have to remind them.
The 3rd potential problem (particularly when your judgment dollar amount is relatively small) is because labor boards rarely make the owner(s) of the company liable on their awards. This means it is very rare to collect from company owners personally.
Once in a while, a labor board helps with alter ego circumstances to add company owner(s) to their award and judgment, however you will probably lose the accrued interest, and need to ask the state court for a new judgment with another case number. And, labor boards will ask you to assign your prior judgment to them.
If a labor board award is filed with some court, it is lodged with a regular court, never at a small claims court, it does not matter how small the judgment dollar amount is.
With the state of California, Labor Board Code 1194.3 states an ex-employee creditor can collect attorney's charges and also any expenses incurred to enforce a unpaid judgment for wages, but only against the company named. If that company is no longer in business, usually it is game over.
How do you know if your labor board award was entered in some court? Look up their name or your name on the court's records, perhaps using your court's web site. When your name isn't in your court's register of actions, it probably is not lodged with the court. The court will verify it, and so can the labor board.
How do you know if that business which owes you money is still in business? In addition to doing a drive-by, one can check the secretary of state website and see if the company are still have active status.
Labor boards create awards of arbitration, and those awards are most often sent to a civil court, and get a new case number. After it turns into a judgment, then it can be enforced.
The state courts used to take about three weeks to 2 months to process labor board judgments, however courts have cut back recently so it may now take longer.
For judgment enforcers; labor boards won't speak to anybody except for the original judgment creditor, which means when there's some question whether the judgment has been entered at a state court, have the original judgment creditor ask the labor board.
Also for recovery specialists, one thing to beware of is assignments to a state franchise tax board for recovery. In this case, make sure that the original judgment creditor has their judgment assigned back to them, prior to you taking an assignment of their judgment. If the judgment is in the hands of the franchise tax board, the ex-employee lacks the power to assign their judgment.
Article Source: http://www.abcarticledirectory.com
Mark Shapiro - Judgment Referral Expert - www.JudgmentBuy.com - the place Judgments go and are quickly Collected.
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