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  1. #1
    Join Date
    Jun 2010

    Default How to Collect on an Award from the Labor Commission

    My question involves labor and employment law for the state of: California

    So I have been awarded a Decision on my claim of unpaid wages against my former employer who went out of business. I want to know what the best way to collect as the business did not file for bankruptcy as to the best of my knowledge and still has some corporate business bank accounts that were frozen by the bank as the company was behind on a line of credit.
    Can I collect from that bank if there are funds in the bank account event if itís frozen?
    If the owner broke the corporate veil, how hard is it to go after him? (He was collecting payments that should have been paid to the corporation directly to him in his name.)


  2. #2
    Join Date
    Sep 2005
    Behind a Desk

    Default Re: How to Collect on an Award from the Labor Commission

    When the the Division of Labor Standards Enforcement (DLSE) issues an Order, Decision, or Award (ODA) in favor of an employee and there is no appeal, but the employer nonetheless does not pay the amount awarded, the DLSE will have the ODA entered by a court as a judgment against the employer. You can try to collect that money yourself or you can assign the judgment to the DLSE.

    Some tips on collecting a judgment are described here, in the context of small claims; the overview is largely applicable to efforts to collect judgments through other California courts.

    You can't pursue the former employer's personal assets on the bare claim that he "broke the corporate veil" - you would have to prove in court that there was a valid basis for piercing the corporate veil and have the judge agree.

  3. #3
    Join Date
    Jun 2010

    Default Re: How to Collect on an Award from the Labor Commission

    Thanks for the info. Itís really frustrating to have an employer skip out on is responsibility and know he has collected over 100k for himself. I am hoping we can collect from the bank.


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