Wage Justice Wins Successor Case
Wage Justice Center wins a victory in successor liability case.
On November 1st, Los Angeles Superior Court judge Ralph Dau upheld a claim seeking to hold a machine shop liable for wages owed by a successor business. The employee’s claim stemmed from unpaid overtime wages that was already found to be owed by the California Labor Commissioner.
Unfortunately, the company ordered to pay these wages (“High Performance Tool Grinding, Inc.”) has ceased doing business and is listed as a “suspended” corporation by the secretary of state.
Despite this status, the machine shop continues to operate with largely the same employees, customer-base and management, under an almost identical name (“High Performance Tool Grinding, LLC” ).
While our client’s claim was pending before the Labor Commissioner’s office, the assets of High Performance Tool Grinding, Inc were sold to High Performance Tool Grinding, LLC.
The Wage Justice Center filed suit in July seeking to have the new company held responsible for paying the wages owed to our client. The court’s recent ruling allows this case to move forward in the face of the company’s request that the case be dismissed.