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Texas college wage dispute turns into a painful waiting game

| Jul 26, 2013 | Wage & Hour Laws |

In what has become a costly and painful situation for a group of former employees of a Texas college, the waiting is entering its second year. In a wage dispute between the college and several former employees, differences in the amounts owed vary by degrees of up to 10-to-one. The former employees claim that the counter-offers coming from the college are far below the amounts actually owed to them.

The college filed for bankruptcy in July of 2012. That marked the beginning of a battle by the stricken employees to collect the wages still owed them. That battle has been continuing for a year now and the plan agent for the now liquidated school claims that some payments will be forthcoming in August 2013. Those amounts, however, look like they will fall far below the expectations of the former employees hoping to receive the correct amounts owed them.

One former employee, for instance, has firmly objected to the amount the school claims she is owed and says she is being severely short-changed. The school claims she is owed $501.53, but the former employee says she is still owed $5,208. The difference is significant and the fact that the wait for those unpaid wages has been dragging on for a year has become a rather painful issue for her and many of the other employees who have been enduring the delays in payment.

The agent for the liquidated Texas college has not been specific about any progress regarding the pay disbursements, but was concrete in stating that the issue will conclude in August. The nature of that conclusion and the outcome of the year-long wage dispute between the former employees and the now-liquidated school still remain to be seen. Former employees dealing with both unpaid and disputed wages will find it in their best interests to not ‘go it alone’ in their efforts to recover the compensation owed them. Third-party professional advice and assistance from those who are knowledgeable and experienced in matters of wage and labor law can go a long way in achieving a favorable outcome when dealing with a former employer undergoing bankruptcy proceedings.

Source: The Athens Review, “A costly waiting game — A year later, Lon Morris still hasn’t paid some employees,” Ben Tinsley, July 11, 2013

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